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Bill Bittner

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BWH Consulting

Dollar General Getting Into Beer and Wine Biz

August 20, 2010

FROM RETAILWIRE:
Dollar General has done well selling consumables in other categories so why not try its hand at beer and wine? How big a competitive threat do you think dollar stores are to other retail outlets that currently sell beer and wine?      [more...]

MY COMMENTARY:

This idea brings back images of my teen years (many, many years ago). I don't think you're going to find discriminating pallets in the dollar stores. I don't know if the old standbys of Ripple and Schlitz are still around.

I am sure they have researched it, but there seems that in addition to the physical requirements there has to be concern over the legal ramifications of wine and beer. These include everything from age verification of the employee and the customer to the risks of serving an overly intoxicated consumer who has no insurance and gets involved in an accident. It might even translate into higher labor costs. All this will vary by jurisdiction.

Having said all that, wine and beer have become fairly common beverages that are used by many adults along with their home meals. As more "empty nester" households evolve, I imagine this trend will continue. So making it convenient for the consumer at a reasonable price seems like a good strategy.

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