Interview: Hi-Time Wine Cellars Thrives In Competitive Orange County Market
June 25, 2015Hi-Time Wine Cellars operates just a single location in Costa Mesa, California, but the independent retailer churns big volumes, with annual revenues in excess of $28 million. At 22,000 square feet, the Orange County destination store attracts high-spending businesses and individuals, as well as locals simply looking for an everyday wine. Shanken News Daily spoke recently with Hi-Time Wine Cellars CEO Diana Hirst about trends in her market and her company’s route to success.
SND: Against a backdrop of the highly competitive Southern California marketplace, how has Hi-Time continued to thrive?
Hirst: The reason we’re here, and the reason stores like us exist, is because we can provide great service and we have people who know about the products. We really emphasize service and helping customers, along with things like delivery and shipping. Otherwise people would just go to Costco or wherever else.
SND: Can you compete on pricing with the major chains?
Hirst: We try to have very aggressive pricing because we have to. We might not be as cheap as Costco, but sometimes we are. It’s always a fight with the distributors because they try to give the better prices to the chains. They want to deal in thousands of cases and we can’t do that. We might buy 100 cases.
SND: Do you look to have a breadth of selection that’s unrivaled in your area?
Hirst: We like to have a very deep selection. If something is new, we might put it on the shelf when it could never get shelf space someplace else. We’ve helped build a lot of brands over the years—and then they go to Costco. It happens.
SND: Do distributors recognize that role and reward you for it?
Hirst: No, not at all. We have to throw tantrums even to get product sometimes. That said, some are helpful. It really just depends on your distributor.
SND: Can you explain your service philosophy and how that sets you apart?
Hirst: We have a lot of loyal customers. We’ll go out of our way for people, and some people are really looking for that. Also, we don’t want to be a snobby store. We want people to feel like they can come in and look around, and not have to buy anything. We don’t want them to feel intimidated, because wine, and some spirits, can indeed be intimidating. We’re located in the Newport Beach/Costa Mesa area, which is very affluent, but we have a broad spectrum of shoppers. We have a huge diversity of products, and that really lends itself to a lot of different types of customers.
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