Pricewatch: 26 January, 2018

Analysis

Our data and retailer interviews this week reveal a wide variety of approaches to pricing rosé wine. On our Price Checker table, 62% of products are sold below Booker’s RRP, with 18% priced above, and 20% at RRP.

Where the lower-priced Straw Hat is concerned, however, 39% of stores sell it at its £3.99 RRP, but 55% take the opportunity to increase margins by pricing up to £2 higher. 

This week’s interviews put these patterns in context – pricing is determined by local competition and shopper budgets, but when the opportunity arises, higher margins can be earned and the use of product knowledge and recommendations is also profitable.

Profit checker

Price Price distribution %

Price checker

Average Price RRP LARGE VILLAGE STORE ON SOUTH YORKSHIRE HIGH STREET C-STORE ON HIGH STREET IN LARGE CENTRAL SCOTLAND TOWN POST OFFICE AND STORE IN SUBURB OF LEICESTERSHIRE TOWN CORNER SHOP ON TERRACED STREET IN LARGE NORTH EAST TOWN NEWSAGENT AND STORE ON MAIN STREET OF SHROPSHIRE VILLAGE NEIGHBOURHOOD STORE IN SUBURBAN NORTH MANCHESTER
ECHO FALLS 75CL £5.10 £6.25 - £5.99 £4.99 £4.99 - £5.99
ECHO FALLS ROSE SUMMER BERRIES 75CL £5.10 £5.19 £4.49 £5.00 £4.00 £5.00 £3.99 £4.99
BLOSSOM HILL 75CL £5.40 £6.59 £5.99 £6.59 £4.99 £4.99 £5.50 -
HARDYS BIN 161 75CL £5.50 £5.50 - £5.50 £5.50 - £5.50 -
BLOSSOM HILL GRENACHE 75CL £6.81 £7.49 £5.49 £6.99 £5.99 £5.49 £6.79 £6.99
ISLA NEGRA SEAHORSE 75CL £5.58 £5.50 - £5.50 £5.50 - - -
THE STRAW HAT 75CL £4.20 £3.99 £4.49 - £3.99 £3.99 £4.79 £4.49
I HEART ZINFANDEL 75CL £6.16 £5.79 £5.49 - - - - £6.49
MATEUS ROSE 75CL £6.42 £6.59 - £6.59 £5.99 £5.99 £5.99 £6.99
ECHO FALLS FRUIT STRAWBERRY & LIME 75CL £5.04 £4.49 £4.49 - - £5.00 £3.99 £4.99
MAKULU PINOTAGE 75CL £5.05 £5.00 - £5.50 £5.00 - - -
BLACK TOWER 75CL £6.22 £6.49 £5.99 - £5.99 £5.99 - -
£8.00 £18.00
£9.00 £20.00
£28.00 £62.00

How we drive our profit

Phillip Constantine Avatar

Phillip Constantine

Nisa Local

Location: Hither Green, London

Size: 1,400sq ft

Type: neighbourhood

Top Tip
Ensure products are chilled and given their own front-facing bay to boost sales
We stick to RRP on Straw Hat rosé, along with other rosé wines in our range, such as Casillero Del Diablo and I Heart Zinfandel. RRP is important because we have a Sainsbury’s Local right across the road and staying competitive with them is the key to attracting customers. We normally sell a case of six bottles of rosé a week and we drive sales further by including tasting notes from Nisa which not only help them stand out on our displays, but also helps boost basket spend when custom­ers see suggestions for food pairings.
Kamal Thaker Avatar

Kamal Thaker

Stop Shop News

Location: Edgware, London

Size: 800sq ft

Type: residential

Top Tip
Making alcohol recommendations is key because they help you stand out and shoppers will remember you for them
We only added an off-licence around a year ago and our alcohol section is just two metres in size, so it’s important for us to earn decent margins from it to make sure it’s profitable. We target a 25% margin and the fact we have no immediate competition nearby really helps. However, we can’t overcharge too much because we don’t want to put customers off. Many people who shop in our store aren’t that familiar with rosé. Having our bottles behind the till helps us with this because we can introduce people to our wines and explain why they should buy them.
Arnaud Leudjou Avatar

Arnaud Leudjou

Costcutter

Location: Uxbridge

Size: 1,800sq ft

Type: village store

Top Tip
Know your customers. Affluent customers tend to care about the origin of wines, while we’ve found students don’t
We sell Straw Hat rosé at RRP and take the same approach with Blossom Hill and other rosés too. We can’t promote alcohol that actively because we’re based on a university campus, so we drive sales as much as possible by using fixed prices and ensuring everything is front facing, to make our displays easy to shop from. Students don’t have much disposable income so we stick to rosés which cost no more than £5, and sell 12 bottles a week. We keep it simple when it comes to variety and merchandising, because students aren’t bothered about the origins of a rosé or its grape type.
Suenita Keshwara Avatar

Suenita Keshwara

Costcutter

Location: Boston, Lincolnshire

Size: village store

Type: 1,800sq ft

Top Tip
Know your customers. Affluent customers tend to care about the origin of wines, while we’ve found students don’t
We sell Straw Hat rosé at RRP and take the same approach with Blossom Hill and other rosés too. We can’t promote alcohol that actively because we’re based on a university campus, so we drive sales as much as possible by using fixed prices and ensuring everything is front facing, to make our displays easy to shop from. Students don’t have much disposable income so we stick to rosés which cost no more than £5, and sell 12 bottles a week. We keep it simple when it comes to variety and merchandising, because students aren’t bothered about the origins of a rosé or its grape type.

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