Minnesota Retailer Haskell’s Continues To Evolve In Increasingly Competitive Market
October 25, 2019The 11-store retail chain Haskell’s has been a fixture in the Minnesota market for decades. Founded in 1934 and purchased by Jack Farrell in 1970, the business has evolved tremendously over the years, adding retail units and on-premise offshoots, expanding its product selection, and embracing modern technology to help usher in a new generation of consumers. Today, Haskell’s is a destination for fine wine consumers, with Farrell recently earning top honors as the 2019 Market Watch Leaders Retailer of the Year.
Haskell’s units vary in size, ranging from 3,000 square feet to 20,000 square feet, with the average space equaling roughly 8,000 square feet. The company boasts 17,000 total SKUs, with most stores carrying 10,000-11,000 SKUs. Wine dominates, comprising 8,700 SKUs and 56% of total company revenue—which is in the mid-eight figures—followed by spirits at 3,300 SKUs and 23% of total revenue, and beer at 3,700 SKUs and 18% of total revenue. The remaining 3% of sales are made up of miscellaneous items like soda, mixers, and glassware.
Haskell’s top-selling wines include Kendall-Jackson Vintner’s Reserve Chardonnay ($10 a 750-ml.), Louis M. Martini Cabernet Sauvignon ($12), Apothic Red Blend ($7), and the proprietary label Silver Beach Sauvignon Blanc ($12). Proprietary wines are a big part of the business. The company carries private labels in every wine category, and Farrell estimates that over 2,000 SKUs—more than 25% of the stores’ total wine SKUs—are proprietary offerings. Haskell’s also opened a wine bar just under two years ago, which features its proprietary labels alongside national brands.
The technology component is key at Haskell’s. The company revamped its website about two years ago. The online retail component is challenging because of the country’s ever-changing shipping laws, but the website contributes a few million dollars in revenue. Haskell’s also recently developed a mobile app that allows shoppers to order products from their phones and tablets for in-store pickup or delivery.
In recent years, competition in the Twin Cities market has expanded rapidly. Farrell notes that other key retailers—including national chains Total Wine & More and Target, which is based in Minneapolis—have a high concentration of beverage outlets in the area, and that supermarket chains are also allowed to sell alcohol. Pair that with the recent advent of Sunday sales in Minnesota and the fact that retail companies are only allowed to have one beverage sales license per municipality in the state, and it means a dramatically changing face of drinks retail in Minneapolis–St. Paul.
“We’re doing pretty well considering the degree of challenges we face in Minnesota,” Farrell says. He notes that future expansion isn’t out of the question for Haskell’s, but says nothing firm is in the works. “We always have our eyes open,” he explains. “We’re digesting all the recent changes and waiting for the dust to settle before we re-enter expansion mode.” Market Watch has more.—Laura Pelner
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