Industry Analysis & Industry Trends
Over the five years to 2014, uncertainty and unemployment constrained consumer budgets; as a result, consumers bought more alcoholic beverages from the Beer, Wine and Liquor Stores industry instead of going out in order to save money. In the five years to 2019, escalating competition from restaurants and bars is expected to inhibit revenue growth as consumers with rising incomes choose to drink more on-premises beer, wine and liquor. Profit will improve just slightly as states' deregulation allows stores to purchase more products in bulk and bypass some distributors. Stores will offer a wider selection of products or specialize in a specific type of beverage to meet consumer demand in particular locations, especially ones that face competition due to deregulation... purchase to read more
Industry Report - Industry Key Buyers Chapter
Many stores are family owned and operated, and about 97.8% of industry firms employ fewer than 20 people. The concentration of ownership of beer, wine and liquor stores is low due to state regulations that mostly prohibit vertical and horizontal integration (see Regulation and Policy). As states lift constraints, the industry is expected to consolidate in the face of increased competition. Large chains are expected to purchase mom-and-pop stores and are also anticipated to open new locations to provide liquor sales in locations convenient to desirable and under saturated markets.
As such, the industry will become more concentrated in future years, due to the entrance of large chains... purchase to read more