WINE RETAIL SHOPS GROWING WITH CONSUMER TRENDS

With nationwide consumers turning more and more towards wine, the United States is slated to become the largest wine drinking nation in the world by 2008. And retailers are hoping to capitalize on that growth. Flashy labels, colorful titles and ever increasing brand exposure make it easy for the average consumer to choose a bottle without the intimidation. With easily recognizable brands like Yellowtail, Smoking Loon and Little Penguin, consumers can attain that image easily without much brand knowledge. These brands, along with many others, are a function of marketing, not necessarily quality.


Wine is no longer limited to small specialty shops and is now offered in every Kroger, Costco, Sam’s and Wal-Mart in bright, showy displays. As a result, wine specialty shops are sidling up to the big guys with the emergence of nation-wide specialty chains such as Total Wine and WineStyles that usually cost less than warehouse clubs.


And, as most of you are well aware, consumers are willing to branch out more than ever. For example, 85% of the increasingly important millennial group says they frequently or occasionally purchase a label they’ve never seen before, usually in the $10 range. “We're able to have a lot better pricing because of the volume going through our stores,” said David Trone, the president and co-founder of Total Wine, told the Miami Herald. “The majority of folks prefer to shop in specialty stores that can give you better service and selection.”