Wine can be a profitable category for convenience store retailers, depending on your market area, but only if it’s done right.
Just adding a red and a white wine option isn’t likely to grow sales, especially today when customers’ palates are more sophisticated and they’re eager to taste test new flavors. If you only offer space for a couple options, it might spur an impulse buy, but customers aren’t likely to seek out your store for a future wine purchase.
How much space a c-store devotes to wine ultimately depends on the demand for wine at a given location and the level of commitment it wants to devote to the category. Some convenience stores feature full sections of wines, with multiple rows of shelving that showcase wines in a range of price points, from $5 to over $50. These convenience stores become known as destinations for wine. They actively promote the wine they’re featuring. Employees are trained to know about the offerings, and signage directs customers to the price-point that best suits them.
Not all c-stores are looking to put that much emphasis on wine however. Some large c-stores devote a three-foot, four-shelf rack for red wine on the c-store floor and a two-foot, four shelf space for cold wine in the cooler or beer cave area. Smaller convenience stores likely wouldn’t have that kind of space and might have better success with a two-foot, four-shelf warm rack on the sales floor, plus two shelves in the cooler or beer cave for cold white wine.
If you’re thinking of expanding your wine section, be sure to allow enough space to offer a selection of both red and white wines in various price points. A $50 bottle of wine may or may not work in your market, but you can market good, better and best selections.
For example, a $10 bottle of Merlot might work for someone staying in to have a movie night at home, but that same customer might want to return to select a $15 bottle when they’re having dinner at a friend’s house. That customer might prefer a $20-$25 bottle if they’re giving the wine as a gift or going to a more formal gathering. And they might want to buy a three-liter box of wine for casual drinking at home. Tetra packs of wine grew in popularity during the pandemic when customers were stocking up to drink at home, and many retailers report the trend is still going strong. By featuring a wine section that has all of these occasions covered in a few different varietals of both red and white, you should be able to help customers see your wine section as a destination.
And remember that customers like surprises too. Consider allowing space to include some limited-time offers, such as a mulled wine in winter, and rotate in local wines to keep the selection interesting, so customers can always find something new. Stay on top of trends and consider allowing space for items like canned wine.
Again, how much space to devote to a wine section will vary by convenience store, but with a decent variety and range of price points, it’s sure to attract customer attention.