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What’s the Recipe for Total Wine’s Success?

Written by Tom Ryan

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Total Wine & More recently became the largest alcohol retailer in the U.S., surpassing Costco. Why is the superstore flourishing?

Total Wine is foremost known for its massive selections, with each location including more than 8,000 kinds of wine, over 2,500 types of beer, and more than 3,000 spirits. The stores are also immense in size, averaging 25,000 square feet, with some reaching 50,000 square feet. The stores’ ambiance plays up brightly lit displays, wide aisles, and clear-cut organization around categories.

In a review of a Wichita store opening, a Wichita By E.B. article stated, “I felt like I was walking into a polished and spruced up Lowe’s that just happened to only have adult beverages inside.”

Total Wine also price shops retailers in each area to ensure it has the lowest prices. The company’s website states, “Our tremendous buying power and special relationships with producers, importers and wholesalers bring us considerable savings, which we pass on to our customers.”

The shopping experience includes flat-panel monitors spouting information about products, particularly located near tasting stations. The middle of the store features a high-tech wine education center for events, tastings, and classes. A “Meet the Makers” series enables virtual tastings with producers in places such as Napa Valley.

“I kind of see it as the Barnes & Noble of the industry,” University of Maryland business professor Jie Zhang told The Daily Record. “They have the competitive prices part — that is like Walmart. They have the large assortment like Home Depot, but they also emphasize the customer education part — that is like Barnes & Noble, like how they bring in speakers and authors … to really educate consumers.”

All associates participate in extensive training programs, weekly team wine tastings, and monthly wine-producer seminars. Many travel to winemaking regions to meet producers and learn about their wines firsthand.

Robert Trone, co-owner of Total Wine, told Forbes, “We invest in training, grow our people, and make this a fun place to work. An entry-level floor employee has the opportunity to move into a supervisor role and eventually manage their own store. Some retailers used to offer this to employees, but many have stopped.”

Total Wine has 263 stores in 28 states with plans to add 15 to 20 stores annually, according to Trone. Locations are situated in areas that reach its higher-income target customers.

“We are following more of a Whole Foods strategy, with real estate, but we have low prices,” Trone explained. “In the end our strategy comes down to offering consumers a great selection, with the lowest prices within that market, and knowledgeable people to serve them.”

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