In an unexpected twist, new research reveals that the arrival of big wine retailers can actually benefit smaller, independent stores.
A study featured in the Journal of Wine Economics shows that corporate alcohol retailers boosting their presence in a neighborhood can lead to improved economic conditions for nearby local wine and liquor shops.
Positive Impact on Smaller Retailers
Carried out by a team of researchers hailing from Connecticut, North Dakota, and Norway, the study highlights a notable phenomenon: small alcohol retailers located near larger corporate competitors often see their businesses thrive.
This effect is especially strong among traditional retailers in urban settings.
What’s particularly interesting is that these positive impacts seem to increase over time.
The study suggests that as larger retailers expand, they inadvertently pave the way for smaller shops to find new opportunities.
Independent wine store owners have observed that, although they have changed their product ranges in response to the influx of big retailers, their sales have not dipped.
In fact, some have turned the challenge into success by offering a carefully selected array of unique wines that larger stores may overlook.
Staying Competitive
To stay competitive, these smaller merchants have chosen to specialize, often steering clear of mainstream offerings.
Many shop owners shared stories about how they adjusted their inventories once the corporate giants moved in, opting for distinctive selections that set them apart.
Insights for Legal Discussions
Tom Wark, executive director of the National Association of Wine Retailers, noted that the results of this research could provide important insights in ongoing legal discussions surrounding wine retail.
He emphasized that the presence of larger retailers does not necessarily threaten the survival of small, independent fine wine shops.
Source: Wine-searcher
