U.S. supermarkets reposition themselves as local wine shops

SUPERMARKETS are leading the wine retailing revolution across the United States, expanding the traditional outlets for wines from speciality shops and liqueur marts to offer consumers more accessible options. 

 

The number of grocery stores selling wines has risen from 27,850 in 2010 to 30,000 as of mid-December 2014. The growing range of wine-selling stores now comprises limited-assortment types to high-end/natural and gourmet outlets, and stores with smaller formats to outlets with massive floor plans.  

 

Many supermarkets are transforming themselves from being a source of one or two lower-end choices to outlets offering distinctive and varied wines. Grocery retailers are boosting efforts to offer the convenience of a one-stop shop, participate in a big and growing category, and generate bigger basket sales. 

 

Sales are keeping pace despite the increasing saturation. Last year, supermarkets across the country including mass-merchant superstores, achieved $8.6 billion in wine sales. This represents about 42% of the country’s “off-premise” or store bought wine consumption for the year. 

 

The average grocery store sells about 360 different wines in a week, according to a Nielsen research, and that number continues to climb. 

 

Growth within these outlets is picking up pace compared with overall wine sales. The increase in consumer spending on wine in supermarkets exceeded 4% compared with 2013 figures. This is because grocery stores are generating not only bigger wine sales but also bigger basket sales overall as consumers tend to spend more when they buy wine. An average consumer spending of $47 per trip without a wine purchase rises to $75 when the shopper buys wine. The additional $28, however, is not only for the wine, which costs just about $15. It covers other items that a consumer buys that go well with wine. This suggests selling wine diversifies a supermarket’s product range and yields additional sales.

 

Not all supermarkets can capitalise on wine, however. Several US states do not allow supermarkets to sell wine.