Total Wine: The Future Will Be Consumer-Centric
November 1, 2024National retail chain Total Wine & More continues to expand on its mammoth U.S. footprint, with a current total of 271 stores across 29 states, and plans to reach 300 locations by the end of next year. Last year, Total sold 260 million bottles of wines and spirits and served 18.5 million customers, bringing in over $6 billion in revenue. As the company looks to keep momentum rolling, its executives say more personalized marketing is key to meeting the demands of today’s consumers.
The future will be more consumer-centric, Total believes, with changing preferences dictating the direction of the market. “How do we put the customer at the top?” asked co-owner Robert Trone, addressing attendees of this fall’s 48th Annual Impact Marketing Seminar in New York. “How do the three tiers—the retailer, the wholesalers, and suppliers—somehow work together to better satisfy the needs of that consumer in a way that we all can grow?”
A key part of the answer is in hyper-focusing marketing to reach individual consumers, he explained, with the company now delivering about 1 billion personalized offers to customers annually. “About 80% of our customers are loyalty customers, meaning that we have information on who they are, what they shop, what stores they’re shopping, and it really allows us to market to them in a different way,” said Trone.
Total’s role in the evolving relationship between the three-tier system and the consumer, added chief merchandising officer Angela Weber, is to guide consumers and create a positive shopping experience. “It’s more than just about selling products, it’s about connecting those customers with the items that they’ll truly enjoy,” said Weber. “We can work together to drive innovation and progress to meet the needs of those shared customers.”
As consumer trends shift, Weber noted that building connections becomes all the more important. One of Total’s responses to declines in consumption is to cast a wider net. As an example, the company has increased its focus on Spanish-speaking customers, adding multilingual employees in relevant communities.
In addition, Total is making inroads with higher-end consumers through concierge service. “Right now we have 184 locations with dedicated concierge teams focusing on building strong, lasting relationships with our top customers,” said Weber. “This includes enhanced digital experiences, a beautiful holiday catalog, personalized emails, and an exciting partnership this fall with American Express Centurion cardholders.”
Total Wine is also employing these strategies for the rest of its customer base, including using sales data to pinpoint its marketing messages. “We’ve shifted our marketing focus towards highly personalized strategies,” said Christina Callas, chief digital officer. “One of the ways we’re doing this is through customer segmentation, allowing us to tailor our offers and our messages.” As an example, Callas points to a consumer who is purchasing a variety of different Tequilas. Using the sales data at its disposal, the company can be sure to serve relevant ads, events, and promotions to this Tequila-focused customer.
“The world’s changing very quickly with new market segments, new consumers everywhere, and lots of new products,” summed up Trone, adding that it’s a collaborative effort to get the right “products in the right stores at the right time,” with plenty of potential upside for suppliers, wholesalers, and retailers alike.—Shane English
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