Rethinking Retail

Rethinking Retail provides insights and practical suggestions you can implement to get more foot traffic and improve sales. And check out Rethinking Retail podcasts. Lasting no more than 5 minutes, you’ll get straight talk and great tips from industry pros who want you to sell more beer.

 

Shelf Sets for Today's Single-Serve Consumer

For many retailers, the stereotypical single-serve customer drinks his or her purchase outside the store, leaving an empty container and paper bag behind in the parking lot as an ugly memento. “I don’t want that kind of business,” is a phrase lots of Origlio sales professionals hear when they discuss single-serve options with retailers.

But there is another kind of single-serve consumer, one who craves variety, new flavors and a customized – make that personalized – assortment of adult beverages that six and 12-packs don’t offer. “Today’s legal age drinkers have a set of roughly 12 different kinds of alcoholic beverages in their personal repertoire,” explains Ray Faust, Chief Sales Officer for Heineken USA. “Today’s consumers are eager to experiment with new flavors and styles. They are willing to pay more for something unique. And cost per ounce doesn’t really matter, as long as they get the assortment they want. Single-serve, two-fers and 4-packs are the preferred packages for these consumers.”

“It’s all about the luxury of choice,” says Linda Ashbee, Origlio Beverage Off-premise District Manager for Delaware and Chester Counties. “The right assortment of single-serve and small format packages is an opportunity for retailers to drive impulse purchases. Plus, these packages make it easier to entice customers to trade-up to high margin items, which might be deemed too expensive in larger configurations.” “But to cash in on these opportunities, you have to ‘curate’ the right assortment for your store. What you don’t have to do is cram in everything under the sun. That just confuses and frustrates the customer,” says Jeff Stiles, Off-premise District Manager for Bucks and Montgomery Counties.

So what does the right assortment look like?

“There’s no one, simple answer to that question”, comments Bob Seeley, Off-premise District Manager for Philadelphia County. “But whatever the assortment is, it must be organized in some kind of logical order that makes sense to the customer. You want to make it simple for the customer to shop and choose. If you don’t do that, you can forget impulse buys and up-selling.”

 

Build Your Business with Single & Small Format Packages

To provide an organized and logical shopping experience, follow the suggested flow of product segments. The product assortment and space allocated to each segment should be based on your customer’s demands.

Remember: shoppers expect stores to fulfill ALL their needs, while still making it easy to shop.

 

Key Take-Aways

• Easy to change assortment

• Singles & small format packages are very profitable

• 55% of all beer purchases are singles

• Single sales have increased 31% since 2012 across all price segments

• The single shopper is more loyal to a store than any other customer

If you maintain this template, it will be easy to change your display to take advantage of new products and seasonals.

 

Rethinking Retail Podcast Ep. 1: Shelf Sets

 

 

Industry Analyst Bump Williams Explains Why Now is the Time to “Rethink” Your Retail Strategies

“I thought I had it all figured out,” a beer distributor said to a long-time customer while carrying a case of beer to her car. “I can sell beer in all different packages – even growlers. But now other licensees sell beer and some sell wine. How do I compete?”

Sound familiar? You built a thriving beer business in Pennsylvania playing by the rules. Yes, the rules [laws] have changed, but so have a lot of other things. Customers don’t just buy beer; they are looking for a retail experience. Beer-only drinkers are harder to find. Many customers who purchase beer often make decisions based on information they read on their mobile phones, while walking up and down the aisles. Then occasionally someone walks into your store, looks around, but leaves without buying anything.

“Stores across the country face the same challenges, but my heart goes out to the folks in Pennsylvania because the retail landscape there has changed dramatically in a very short period of time,” says Bump Williams, founder of BWC Company. Williams is well known in the beer, wine & spirits world where he has made his mark helping retailers grow sales. He begins by evaluating their current status and goals. Then he gives his clients actionable recommendations, which invariably improve their bottom line.

“It’s a lot to absorb,” says Williams about the situation in Pennsylvania. “Some guys have even admitted that they feel lost and don’t know what to do, or where to begin. If you want to stay in business, I tell them to take a deep breath and think about taking small bites out of the apple. There are ALWAYS things you can do, even if you don’t have a lot of money to spend, to show the customer that your store is where they want to buy beer. What you can’t do is NOTHING.” Bob Sokel, Off-Premise Chain and Space Planning Manager for Origlio Beverage agrees with Williams’s approach. “When times change, you have to change the way you think about your business. There’s lots of opportunity to grow by selling single-serve and six-packs along with cases. By taking small bites out of the apple, as Williams suggests, you can begin to make changes that will make you more successful.”

“I usually begin by asking my clients a few questions,” Williams says. “What do you think are your biggest challenges? Are you willing to make some changes to address those challenges? What are the kinds of things you have done in the past that have improved sales – like samplings or ‘Meet the Brewer’ events? What makes you different from the competition?” While these are important things to consider, both Williams and Sokel realize that there are only so many hours in a day. When asked to pick just one thing (that doesn’t cost money) you could do to improve sales, without hesitation both men said shelf sets. “Sokel and his Origlio Beverage co-workers have studied how products should be organized to maximize sales. Ask them what should go where,” Williams advised.

Have a strategy in mind before stocking the shelves and you will make it easier for your customer to buy more beer. A shelf set template is available at origlio.com in the Retailer Resources section.” “Hey, you’re not in grade school anymore,” Williams quipped. “Take a look at the plan-o-grams on Origlio’s website. For once it’s OK to copy off of your neighbor’s test paper!”

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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