Kevin Graff

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...]

Admittedly, I'm a bit of wine and beer snob, so I have a hard time imagining myself shopping for mine at a dollar store. Quality, selection, freshness? Certainly not in any dollar store I've been in.

Setting that aside though, there is a huge market that would "drink" this up. I think DG has the potential to win on a couple of angles. First, beer and wine are destination purchases in most cases, so it gets them added footsteps. Second, the reality is that beer and wine is also an impulse purchase (just watch how consumers toss an extra bottle of wine or six pack in the cart at the grocery store...and it wasn't on their list). Positioned right in the stores, this would continue to help them grow the average transaction values.

Just please don't bring the wine you bought at the dollar store to my house for dinner.