Industry Analysis & Industry Trends
During the five years to 2014, the Wine, Beer and Liquor stores benefited from deregulation and growth in consumers' off-premise alcohol consumption. However, the ongoing state liberalization of liquor laws is intensifying competition from internal and external competitors. While some states offered additional alcohol retail licenses, which allowed more retailers to enter the industry, it also permitted external industries, such as supermarkets and wholesalers, to sell alcohol. As a result, deregulation has increased external competition, which has caused many operators to lower prices to remain competitive, thereby constraining revenue growth over the period... 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 prohibit vertical and horizontal integration (see Regulation and Policy). As states lift constraints, the industry is expected to consolidate due to 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 a result, the industry will become more concentrated in the coming years, due to the entrance of large chains... purchase to read more