Liquor stores can earn about $250 per square foot annually. But if you want to bring in this kind of cash, you must take steps to merchandise, lay out, and organize your store properly.
Liquor store merchandising is about more than stocking your shelves; it’s about creating an experience. When you get your merchandising and retail displays right, you’re telling a story, enticing your customers to explore new options and products on your shelves.
This post will walk you through the basics of liquor store merchandising. We’ll explore what merchandising means for a liquor store, then cover some tips and tricks for store layout, liquor displays, and signage.
Liquor Store Merchandising and Space Planning Basics
Effective liquor store merchandising and space planning are essential to running a successful store. You’ll need these elements to capture your customers’ attention, increase sales, and optimize inventory practices. A strategically planned store layout creates an inviting shopping environment, makes it easier for customers to find what they want, and promotes impulse buys.
Depending on your store’s size and the feel you hope to achieve, you can choose from various formats for your layout. Some smaller stores go for a more boutique-style ambiance, while larger setups often pursue a wholesaler, warehouse-like environment.
Choose your format based on your store floor plan, product mix, and target audience’s preferences. Regardless of your format, you’ll want to organize products based on categories, brands, or customer preferences. This organization is key to streamlining customers’ shopping experience and helping them find what they need in your store.
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However, it’s important to note that you need more than just strong merchandising strategies to run a successful liquor store. Efficient inventory management, competitive pricing strategies, stellar customer service, and innovative alcohol marketing tactics are also essential to running a profitable liquor store. You may want to consider additional measures like implementing customer loyalty programs or collaborating with local producers and event organizers.
With this information in mind, let’s now examine our top tips for successful liquor store merchandising in the modern environment.
Leverage Endcap Displays
Your endcap display is one of the most critical tools in your store merchandising arsenal. An endcap is the piece of your shelving unit positioned at the end of each aisle. Unlike the shelf space in your aisles, endcaps are visible from multiple angles, making them prime real estate for showcasing products.
Highlight new items, high-markup items, or bestsellers on your endcaps. You should also regularly change up your endcap displays to get the most impact. Rotate items every few weeks to call attention to new products or seasonal offerings.
Related Read: 4 Liquor Store Promotion Ideas To Help Boost Your Sales
Potential endcap display themes are endless! Some fun examples include highlighting local distilleries, new product launches, gift ideas for certain holidays, or recommendations from staff. A beach-themed display with seltzers, tropical rums, sunscreen, and sunglasses would be perfect for summer. Endcaps are also great for cross-merchandising liquor with complementary items like mixers, wine glasses, or cocktail recipe books.
With some creativity, endcap displays can become a lively part of the store that customers look forward to checking out. They are a versatile tool to engage shoppers and introduce them to new items while giving frequently purchased products extra visibility.
Encourage Impulse Buys With Cross-Merchandising
Another strategy you should consider for your liquor store merchandising efforts is cross-merchandising. This strategy boosts impulse purchases by displaying complementary products in the same area. The goal is to make it fast and easy for customers to grab everything they need for a particular drink or occasion.
Related Read: 5 Creative Liquor Store Advertising Ideas To Boost Sales for Your Store
Here are some examples of effective cross-merchandising displays:
- Cocktail-mixing tools like shakers, strainers, and jiggers can be shelved next to appropriate spirits like vodka and vermouth.
- During summer, create a special "Margarita Station" endcap with tequilas, lime juice, margarita salt and mix, and margarita glasses. Make it a one-stop destination for customers craving a frozen marg.
- Package wine and beer picks with accompanying cheeses, meats, and snacks. Customers can pick up everything they need for a quick charcuterie board.
- Place Bloody Mary spice sets, vodka, and garnishes together to make a brunch cocktail display.
- Display bourbons with recommended cocktail extras like bitters, cherries, simple syrup, and citrus.
The right cross-merchandising displays can drive incremental sales, while helping your customers have a better experience in your store. Customers appreciate being able to easily find everything they need in one place. This convenience helps lead to return visits and brand loyalty over time.
Use Strong Shelf Balance Principles
Another key to maximizing sales and profits is achieving optimal shelf balance in your liquor store. Shelf balance refers to how products are prioritized and spaced on shelving. The goal is to allocate shelf space based on what sells best and generates the most profit — not just what takes up the most physical space.
How can you determine which products deserve premium placement? Consider profit margin, sales velocity, seasonality, and inventory levels. The most profitable and fastest-selling items should receive prime real estate at eye level. Slower products can go on higher or lower shelves. Rotate seasonal things like eggnog or hard seltzers into prime spots during peak demand, then return to tertiary positions once the season ends.
Your point of sale system can help you by providing you access to sales reports. Bottle POS provides an auto ranking feature that ranks your products in order of sales volume and profitability, giving you access to everything you need to make better decisions for your shelf balance.
Managing shelf balance also means breaking down cases and selling products individually rather than in packed quantities. You’ll need a point of sale system capable of tracking inventory at the unit level across an extensive catalog of constantly changing products to achieve this. Choose a modern POS, like Bottle POS, that can handle breaking cases, building custom bundles, and generating item-level reports.
Change Layouts by Season
Adapting liquor store layouts and displays to reflect seasonal shopping trends is a great way to capitalize on seasonal momentum and boost your sales. Customer purchasing patterns change significantly depending on the time of year, so it pays off to keep your liquor store merchandising nimble to keep up with the trends.
For example, warm weather months are big seasons for light beers, ciders, seltzers, and liquors like tequila and rum. Give these items prime shelf placement in summer, bringing them front-and-center with colorful beachy displays. In winter, rotate in dark beers, hot toddy ingredients, eggnog, and peppermint schnapps. You can also create gift bundles for the holidays and place these bundles in prime spots.
Change endcaps monthly to highlight seasonal flavors and gift ideas. Incorporate relevant decorations and signage as well — think flowers and sunshine in spring and mini trees and gift wrap in winter. Promote seasonal tastings and cocktail recipes. Schedule promotional sales around events and holidays that are likely to move products from liquor stores, like Cinco de Mayo, the Super Bowl, or Derby Day.
Adapting layouts is also helpful for managing your inventory levels. Make room for seasonal bestsellers by moving slower products to less prominent positions. Then, switch them back once demand declines. Matching changing consumer preferences through the seasons helps maximize sales year-round.
Utilize Clear Signage
Finally, you must consider your store’s signage when considering your merchandising efforts. Signs can serve as a “silent salesman” for your store, communicating way more than price. Use signs to highlight promotions, new items, limited releases, staff recommendations, and seasonal offerings.
You can explore different types of signage for your store, based on your brand’s aesthetics and identity. Handwritten chalkboard or paper signs give a personal touch and suggest the product has been tasted, and recommended by staff. However, stores can use custom-printed tags for a more polished, branded look. Custom labels allow you to include store logos, product details, tasting notes, and pairing suggestions in one customizable sign. You may also want to implement a point of sale system, like Bottle POS, with integrated custom label printing to simplify this process.
Place signs strategically in high-visibility areas like shelves’ front edges, endcaps, register counters, and outside cooler doors. Ensure signs are visually coordinated using color schemes and designs aligned with your branding. Keep text brief, but descriptive, using persuasive wording like "refreshing" or "limited time".
Similarly, window and exterior signs can draw customers into the store. Promote current sales, business hours, or seasonal cocktails. Just be sure external signs comply with local ordinances and alcohol advertising laws and regulations.
Beyond Liquor Store Merchandising: Running a Profitable Store
In this post, we’ve discussed some key best practices you should follow for liquor store merchandising. However, you must understand that effective merchandising is only one piece of the puzzle.
You need solid processes for managing inventory, minimizing costs, and optimizing operations if you want to run a profitable store. If you feel like you’re drowning in manual store management tasks, have no fear: You don’t have to go it alone. A robust point of sale system, like Bottle POS, can help you manage everything from inventory and shelf placement to transactions and customer loyalty programs.
Witness firsthand how our tailored solution can revolutionize your store management, facilitating enhanced profitability and operational ease. Experience the power of Bottle POS by exploring our free software demo today.
