Industry Analysis & Industry Trends
Operators in the Beer, Wine and Liquor Stores industry remained in high spirits over the five years to 2016, despite having experienced virtually no revenue growth over the period. Due to rising consumer confidence, more consumers have purchased high-margin products such as craft beer, bolstering industry profitability. Furthermore, deregulation of the beer, wine and liquor market in many states has allowed more stores to enter the industry. This trend is a double-edged sword, however, as deregulation has also heightened competition by providing an opening for supermarkets, grocery stores and gas stations to enter the market. Nevertheless, revenue is expected to grow over the next five years as stores generate greater sales of high-margin products... purchase to read more
Industry Report - Industry Products Chapter
The Beer, Wine and Liquor Stores industry not only sells alcoholic beverages but also other nonalcoholic beverages, tobacco products and miscellaneous goods to supplement sales of alcohol. Per capita expenditure on alcohol is expected to increase 0.3% over 2016, and sales of alcoholic beverages typically do not experience severe declines during periods of economic uncertainty. Consumers may purchase less alcohol during sluggish economic periods, but many consumers often switch purchases of alcohol at bars and restaurants toward purchases of alcohol at the industry's retail locations. As a result, the industry has historically exhibited a high degree of stability.
Consumers may, however, shift their purchases of alcohol depending on fluctuations in taste preferences... purchase to read more