HOLLAND, Mich. --- The wine department at D&W Food Centers' new store here is strategically located early in the shopping pattern.
Location is one of several new wine merchandising techniques the retailer is using. To boost sales and improve the shopability of the department, the chain is also cross merchandising with the perishables departments and incorporating a larger display area utilizing "step" displays that can hold up to 120 cases.
Brian Cain, beer/wine/liquor buyer/merchandise for Grand Rapids, Mich.-based D&W Food Centers, told SN he has high hopes for the month-old store. The unit replaces a D&W store directly across the street. The previous unit had been D&W's No. 1 store in total alcholic beverage sales, although it was second or third when sales were broken down into particular categories, such as beer or liquor.
"I think our new store will be No. 1 in every alcholic beverage category," he said.
To better utilize space, wine is merchandised separate from beer and liquor, which are merchandise in-aisle, similar to soft drinks and bottled water.
Having the department further up in the shopping pattern will help D&W boost wine sales, Cain said. In the Holland Unit, wine is located in the rear of the store, nestled in between D&W's extensive deli department and the seafood department. At roughly 300 square feet, the department is also the largest in the 24-unit chain.
Wine is typically the last department in D&W's shopping pattern. The retailer decided that the new location would attract more customers.
The proximity to meat and seafood also makes it easier for D&W to cross merchandise its wines with the offerings in those deparmtents.
"We're starting to put baskets of wine that specifically tie into the meat and seafood specials.
We will put a basket of wine directly in front of the meat and seafood item that is featured as a meal solution," Cain said.
He added that D&W has installed step shelving on a scale that is unique to its Holland store, although it is used on a limited basics at D&W's recently remodeled Grand Haven, Mich., unit.
The step displays, which are placed in the middle of the department, have widths ranging from 7 to 25 inches.
The shelving has also allowed D&W to increase the ratio of display space vs. standing shelf placement to about 50/50, compared to the 20/80 ratio found in most of its other stores, Cain said.
And while this unit stocks the same assortment of wine as other D&W stores, the more expensive wines are merchandised directly on the shelf, rather than in a locked cabinet.
"We've made the more expensive wines a little more visible. One of the front endcaps has Bordeaux ranging from $5.99 to $4.99," Cain said.
As in the other D&W stores wines are arranged according to brand, variety and geographic region.
For example, mass market wines, such as Sutter Home, Glen Ellen and E. & J. Gallo, are arranged by brand, while wines from Michigan, Italy and France are arranged by region. But wines from Chile, Australia, South Africa and boutique wines from California are grouped according to variety: chardonnay, for example.
While Cain admits his system may pose a problem for a real wine connoisseur or someone looking for a specific wine, he finds it is the best system for the casual shopper.
"The real question is, are they in there shopping or just coming in to browse? I think the statistics show [most wine buying] is not a planned purchase, but impulse," he said.
Cain said the Holland unit also stocks a broader selection of Michigan wines than in most of the company's other stores -- an 8-foot set with five shelves, and double facings of several varieties, including the popular St. Julian brand. The wines have been improving in quality and gaining in popularity among the state's consumers, he said.
Cain said D&W has employed wine stewards for several years with positive results. The wine stewards have proven so popular that D&W is considering having two per store, Cain said.
