Change
without compromise is impossible in the face of volatile circumstances. In business,
if you do not change you die. However, you are shooting yourself in the foot if you change so much that
you become unrecognizable in the market. Today I was a kid in a candy shop browsing the shelves of a wine
shop in Chestnut Hill. However, I realized just how much wine shops have changed. Two of my local favorites
have abandoned what makes an ideal wine shop unique and interesting.
Many
small, neighborhood wine shops are up against some heavy competition box - stores, large high volume chains, grocery stores.
The large retailer and small retailer are fighting for the same foot traffic just as the local butcher competes with
the larger grocery store. However, I buy my meat at the local butcher (Emerald Meats) because I know the
person preparing my order, I get excellent customer service, and the product is worth making an extra stop. In
my opinion, it’s even worth a little extra money – the steaks are that good. However, if they
started selling the same product as the supermarket I would not need to make the extra stop. This is exactly
what is happening in wine shops.
In the face of changing and challenging economic times, many small wine shops are abandoning what makes them unique
in the marketplace. Margins are very tight for the small retailer. The holiday season
was exceptionally slow and the winter was dismal. Consumer case orders plummeted. Inventory
stagnated. Distributors swooped in to help. “Austin Liquors sells 10 cases a month
of this……” “This is the number 1 selling brand in Stop and Shop!”
“95 in Parker!” “$3.33 a bottle…you’ll make a killing!”
Out went the “hand sells” and in came the KJ’s. Precious shelf space is frequently
being gobbled up by the same high volume, heavily branded products you can find in the large stores. Vanilla
has started to creep into shops that were once a haven for flavors you never tasted or even heard of. In
the long term this makes no business sense at all.
The small retailer cannot compete with the large retailer on price or foot traffic. Yankee Spirits
can buy wine in large amounts at the steepest discount available which gets passed to the consumer – most of the time.
Small retailers typically do not have the space or the sales volume for large supplier orders even if they do have
the income. Where they can compete is in the niche, hand sell market. When I walked
into Winestone today I felt like I was walking into an art museum. So many producers and even varietals
I have never seen before. Patrick was absolutely electric about his selections. He spoke
about them with interest and passion. I came home with 6 wines I hadn’t seen available elsewhere,
an MT from Alto Adige and a Chenin Blanc from Coteaux du Vendomois. I also bought 3 Roses which I will
taste blind from Coteaux du Vendomois, Beaujolais, and Provence (it was 90 and sunny in Boston to start Memorial Day weekend!)
All interesting and all under $20. They have wines in every price range – to include the “benchmarks”
from all over the world, not just California. The store is the perfect size – not too big.
The shop is focused - no beer, no spirits (that I saw.) They are focused on their market and are
providing the products and service for consumers looking for a unique experience.
Times are tough and something’s gotta give but it doesn’t have to be uniqueness. Change
means doing things differently, a new approach. New customers, wine seminars, delivery services (Winestone),
daily tastings, and a place where other wine lovers can meet and converse, all things that a large or non-specialty retailer
cannot offer effectively or efficiently. While adapting to the changing environment the wine shop cannot
abandon what makes it unique in the marketplace – unique product and service.