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In the world of alcohol retail, the name Total Wine & More has become synonymous with success. With 263 superstores across the United States and revenues of $6 billion in 2023, it has risen to become the largest alcohol retailer in the country, surpassing Costco and Safeway/Albertsons in wine and spirits sales. But how did this empire come to be? In a recent Zoom interview with Robert Trone, co-owner of Total Wine & More, the answers become clear.
It all started with humble beginnings. Robert and his brother, David, grew up working on a farm in Pennsylvania, surrounded by chickens and pigs. When the farm went bankrupt, their only remaining asset was a small gas station that sold beer. But the brothers saw potential and decided to turn it into something bigger. They transformed that one gas station into a thriving business that now spans the nation.
So what's the secret behind Total Wine & More's profitability? According to Robert Trone, the answer is simple: the company does not open new stores until the first one becomes profitable. In fact, they have never had to close a store. This unwavering focus on customer satisfaction, combined with a strong investment in employees and a solid business background, has propelled Total Wine & More to success.
Both Robert and David Trone possess impressive educational backgrounds. Robert holds an MBA in Marketing from Wharton, while David studied law at the University of Pennsylvania. This combination of business and legal knowledge has proved invaluable in navigating the complex and diverse landscape of alcohol laws in different states.
The name 'Total Wine & More' reflects the brothers' early focus on wine as a way to distinguish themselves in the market. Today, the stores offer over 8,000 wines from around the world, along with 2,500 craft beers and 5,000 spirits selections. The stores are organized to be consumer-friendly, grouping wines of the same varietals together and separating New and Old World wines for easier shopping.
One key aspect that sets Total Wine & More apart is their commitment to providing customers with tasting opportunities. They believe that trying the wine helps customers make informed decisions on their purchases. However, it's not just about selection and taste at Total Wine & More; they also pride themselves on offering the lowest prices in each market. They actively price-shop other retailers to ensure that their customers get the best deals.
In recent years, Total Wine & More has embraced technology to enhance the customer experience. They have implemented a sophisticated app, website, delivery service, and loyalty point program, which have become even more crucial during the COVID-19 pandemic. Prior to the pandemic, only 2% of their business was conducted digitally. Now, that number has soared to 20%.
Total Wine & More's expansion plans include opening 15 to 20 new stores every year. They carefully select neighborhoods with a concentration of higher-income consumers who appreciate a wide selection of wines and excellent customer service. The company follows a strategy similar to Whole Foods, focusing on real estate while maintaining low prices.
When it comes to building their team, Total Wine & More takes employee development seriously. They invest heavily in training, providing career path opportunities, and making work enjoyable for their employees. From entry-level positions, workers can progress to supervisor roles and eventually become store managers. The company currently employs over 11,000 people, including 427 wine experts.
Total Wine & More also places great importance on social responsibility. They have donated more than $200 million in-kind and monetary contributions to various charities. Additionally, they honor diverse communities by highlighting their products through special displays within the stores.
While Total Wine & More has succeeded in a highly competitive industry, Robert Trone acknowledges that the future of alcohol sales poses challenges. Trends such as a health-conscious movement, leading to younger consumers drinking less, and aging consumers embracing wellness, have influenced the industry. He advises wineries to connect directly with customers, develop relationships with smaller wholesalers, and focus on enhancing the direct-to-consumer sales experience.
Despite the changing landscape, Robert remains positive about the future of Total Wine & More. They are committed to improving service and selection, making people feel comfortable spending more on quality products that enhance their lives. The company recently introduced a concierge program to assist customers in planning wine cellars, weddings, and other large events.
For anyone who enters a Total Wine & More superstore, it's hard to believe that such a seemingly fancy place offers the lowest prices. However, Robert Trone affirms that their commitment to affordability is unwavering. If customers are not looking to splurge, Total Wine & More also stocks a wide array of affordable wines.
Total Wine & More proves that success is possible in an ever-evolving industry through a customer-centric approach, continuous improvement, and a passion for the products they sell. As Robert Trone states, 'We are here for the long term.' And with their strong foundation and commitment to excellence, there's no doubt Total Wine & More will continue to thrive.