RETAIL / WORLD OF WHISKIES:The wow factor

Specialist stores can work wonders in the travel retail sector. Ben Grant discovers there is life beyond one-stop shopping

In the early 1990s the British Airports Authority (BAA) recognised that it could significantly boost sales by removing certain categories from the one-stop-shop duty free outlet. The concept of the travel retail speciality store was born, and its first manifestation was World of Whiskies, which opened at Heathrow T1 in 1994. It was an instant hit, and the BAA portfolio now includes 10 WoW shops.

The segment was a relatively obvious choice for its own standalone store. Whisky is the biggest liquor category at the airport by some margin, representing 45% of total liquor sales. And it is also a notoriously difficult segment for retailers to strike the balance correctly. If the shop is, or appears to be, too specialised it will delight the connoisseurs, but frighten off shoppers who are not particularly well-versed in the category; too accessible, on the other hand, and the browsers will be engaged, but there’s a danger of alienating the core customer group. It’s a fine line to tread, but a decade of continuously climbing sales figures makes it abundantly clear that World Duty Free (WDF, BAA’s wholly-owned retail subsidiary) has hit just the right note.

Scotch single malts, unsurprisingly, dominate the sales charts, generating about 80% of total sales. But, given the international nature of the location, the stores also carry a significant selection of Irish whiskey, bourbon, blended Scotch and other styles from around the globe. David Griffiths, WDF trading director explains, “From an average of 500sq ft we offer a range of 350 lines that illustrate the breadth and diversity of whisky.” The company claims to offer a larger range of whisky than any other retailer in the UK. It’s impossible to clarify if this assertion is true, but there’s no question that it’s a pretty substantial offer, especially given the unparalleled pressure on floor space in the travel-retail environment.

Top-sellers are, as expected, the big international brands; Glenfiddich, Balvenie, Macallan and Glenmorangie. “Islay malts are our biggest growth region,” Griffiths reports. “Brands like Ardbeg and Laphroaig are benefiting from the evolving palate of our malt purchasers … and brands like Lagavulin and Oban find success because they are in limited supply and have become highly sought after.”

The specialised nature of the store makes it a perfect environment for listing rare vintage products, and this has been a cornerstone of the retail philosophy from day one. The most expensive single bottle to pass through a WoW store is the Glenfiddich 1937; it retails for £10,000, and eight bottles have been sold. Other big-ticket sales have included a Balvenie 50-year-old for £6,000, a Glenfiddich 50-year-old for £5,000 and a Bowmore 40-year-old for £3,500. While items of this value may be a rarity, Griffiths reports that, “Because of the quality of customer who we serve, we tend to sell a £1,000-plus bottle every week.”

Such products are a dream for the retailer, but not just because of the high price and margin they command. “Listing rare vintages gives the shop a really strong USP,” says Griffiths. “When a customer visits it really sticks in their mind.” Not only does this forge a positive association in the mind of the passenger who passes through the store, it is also quite likely that they’ll tell their (whisky-enthusiast) friends about the £10,000 bottle they saw. It’s the sort of public relations that money just can’t buy.

There is also a major knock-on benefit for the less exclusive references within the brand family. In a category that is anchored in heritage, displaying a very old and exclusive product brings the provenance of the brand to life. It’s a far more engaging and alluring experience for a consumer to pick up a bottle of 12-year-old Glenfiddich from a shelf that also carries its 1937-vintage forefather, than to buy from a standard generic display. In an environment where everybody has plenty of dwell-time the store has intrinsic browse-appeal. Vintage products help to create the intrigue required to encourage a purchase (even if it’s not a bottle with a ten grand price tag).

Knowledge is power

The complexity and connoisseurship of the category makes high-quality staff training an absolute necessity. Knowledge and good communication skills are absolutely critical, as Griffiths explains: “The business is reliant on one-to-one interaction between customer and sales assistant.” New starters receive a book about the category before attending a one-day in-house “whisky school” (where, among others, a master distiller speaks to the rookies). With the support of suppliers, WDF then arranges a trip to a distillery and once they hit the shop floor, this background education is regularly augmented with a monthly training session. Regular incentive schemes, combined with the high level of training provided, creates a sense of loyalty and ensures that staff turnover is incredibly slow for a retail business.

Whisky enthusiasts’ thirst for knowledge is almost as strong as their thirst for the spirit itself. So, while staff knowledge is essential to being responsive and answering customers’ questions, it can equally be used to guide them. This helps to relax shoppers and make them feel more comfortable in what can be a rather intimidating environment. And it also gives ample opportunity to encourage trading up. Catering to a distinctly international crowd, WoW staff tend to be multi-lingual and
the retailer tries to have as many of the big languages represented as possible during peak times.

The taste of success
The general ambience and helpful staff are important, but if there’s one factor that can be relied upon to seal the deal it’s undoubtedly the product itself. So allowing customers to taste the product can be vital to clinching a sale. Recognising this reality, WoW stores tend to have approximately 100 references available for tasting at any time. “It’s a very important selling tool,” says Griffiths, because, “It allows our loyal customers to try something different and gives new customers peace of mind with their purchase.”

In terms of key consumers, Griffiths explains that (excluding the UK), the top nationalities are from the US, Norway, Sweden, Germany and Italy. The vast majority of shoppers are male and they tend to be purchasing for themselves. For those who are not so well-acquainted with the category, especially gift buyers, there are a plenty of products available – most notably gift packs and travel-retail exclusives – that break down the barriers and encourage purchasing.

Airports process a huge number of passengers and, among the millions that pass through a terminal, there are plenty of frequent flyers. The quality of the WoW offer, combined with the personal relationships that build due to the longevity of average staff service, means that the stores have plenty of regular customers. There is no official strategy for targeting regulars but, for example, Griffiths relates anecdotal evidence of a manager at the Stansted store who phones a list of regulars to alert them whenever he has intriguing new listings. This is a business that looks after its staff; they in turn take great pleasure in looking after the customers. That’s good retailing. 

© db October 2006