An in-depth study in the wine category in convenience has revealed that improved ranging and merchandising could help unlock a £200m opportunity in the over the next five years.
This is the equivalent of getting just six additional shoppers to purchase wine in every convenience store in the UK each year.
The research was carried out by Treasury Wine Estates (TWE), who believes that many convenience store retailers are missing out on some opportunities when it comes to ranging and merchandising their wine offer. For example, many are too focused on entry level wine consumers – who, while making up 39% of the consumer base for wine, only make up 27% of total spend, thus missing out on consumers who are willing to pay a bit more.
This is supported by the fact that the £6-£8 wine segment in total off-trade is showing 21% growth year on year.
To take advantage of this huge sales opportunity, TWE says that convenience retailers need to ensure they’re stocking a balanced wine range at different price points, with different grape varietals, thus reducing duplication of similar wine types.
The key is to stock a selection of wines that cater for different shopper missions and consumer occasions, such as the” Treat” and “Meal For Tonight”, which shoppers trade up for and are not always stocked in retailers’ ranges. In addition, by separating white, rosé, red and sparkling wines and ensuring pricing is clearly labelled, convenience retailers will simplify the shopping experience for customers and boost their wine sales as a result.
Shaun Heyes, Head of Customer Marketing at Treasury Wine Estates comments: “We think there is a great opportunity to drive value growth into the wine category by working with convenience retailers to get their wine display right for key shopper missions and occasions and attract new shoppers into the category. With summer nearly upon us, convenience retailers should look at adjusting their range now to make the most of the increased sales on offer from the wine category during the warmer months. Targeting occasions presents a great opportunity for convenience retailers and by ensuring they have a balanced range, including chilled wines, they will be able to attract new customers.”
In order to educate convenience retailers on this untapped opportunity and enable them to grow wine sales in their stores, TWE will be running retailer trials with convenience symbol groups to showcase the great results on offer by making these simple changes to the wine fixture. In addition, TWE will be attending a number of trade depot days; will be present at key trade shows throughout the year and will also be producing a raft of dedicated category tools for convenience retailers such as literature offering key advice on how to boost wine sales available in depots and via the trade press.
