RETAIL / PROFILE: The old ones are the best

Independent food and drink retailer Lewis & Cooper strikes the perfect balance between traditional service and modern business principles. By Ben Grant

The role of specialist wine retailers in perpetuating the magic and mystery of wine cannot be underestimated. The big retail chains – like the big brands – have played a tremendous role filling the wine glasses of the masses. But it is the independents – like the small niche producers – who ensure that the variety, adventure and romance of wine continue to inspire and enchant imbibers. It thus seemed logical for the drinks business awards to celebrate these hand-selling heroes of the trade with a new award for the independent retailer of the year. And the first recipient of this coveted prize, Lewis & Cooper, is a perfect example of the positive role that specialists play. For an independent retailer there can be no higher praise than that which was forthcoming from one of the awards judges: “As I was reading through this entry, I kept on thinking I’d really, really love to go and shop there”.

The three-level grocery and fine china store has been a mainstay of Northallerton High Street, North Yorkshire, for over a century – and in many respects it still espouses the old fashioned, personalised retail philosophy of a bygone era. The sign hanging above the door proclaims “The Traditional Grocers” and “Centenary Tea Room” in a cursive script that could scarcely be any further removed from the bright, brazen livery that adorns modern chains. Hand-selling is still central to the business, generating up to 85% of total sales and helping to drive the average bottle price to over £8. Yet while the company clings on to many romanticised practices of yesteryear, it has simultaneously managed to embrace many of the efficiencies of contemporary retailing – a perfect blend of the old and the new.

Independent wine shops, like many of the other old staples of the high street, have been put under enormous pressure by the supermarkets. For many operators, the low volume they turn over simply cannot compete with economies of scale that the multiples generate. Their competitive edge is lost as a result of insufficient buying power – but for Lewis & Cooper, the term  has a very different meaning.

Variety versus volume
“Our mantra is that we have the greatest buying power,” explains the company’s consultant Danny Cooper. “This confuses some people, but as far as we’re concerned, volume doesn’t equal power, choice does.” The vast volumes of wine that the supermarkets can shift mean that they are reliant on suppliers who can deliver a vast quantity of consistent wine. They are thus restricted to buying only a small fraction of the selection that is available to the independents, who can proudly stock a wine – even if they can only source a case or two. That allows a breadth of selection that the supermarkets simply cannot compete with (and is typical of the positive attitude that has seen Lewis & Cooper thrive during a period when so many other independents have been forced out of business).

The shop itself is first and foremost a grocery store. The wine section is located halfway back on the ground floor flanked by the delicatessen and hamper departments, and it does not have a window facing – not exactly the best preconditions. Cameron is happy to admit that the wine offer is “a secondary consideration” for most customers. However, it’s again typical of the business’s mentality that it identifies this factor not as a weakness, but as a strength.

While being hidden away behind gourmet foods could be seen as a problem by many retailers, Lewis & Cooper has turned the predilections of its customers into a major strength. Not everybody who passes through the shop door is necessarily interested in wine, but they’re almost certainly interested in food. So Cameron and his team communicate the wine offer not in complicated, alienating wine-speak, but in the simple, engaging and unstuffy language of food.

“These days the language of food is understood by the majority of ABC1 consumers,” says Cameron. “Most of the people who come into the store just don’t respond to information about maloactic fermentation, or other wine terms. But they are keen to talk about the dinner party they are hosting, and they respond well when we can explain the wine in context of the way it will be served. Food is a common ground that they are confident and comfortable talking about – the vast majority of people aren’t comfortable talking in detail about wine. We needed to find a way to break down the barriers and make it more accessible.”

As a result of this desire to uncomplicate the offer, the layout of the 500-plus wines that line the store’s shelves is markedly different from most other premises. Rather than adopting the standard method and arranging wines by region, Lewis & Cooper merchandises its store by the reason for buying. These include the “Everyday” area for a simple midweek tipple; the “Indulgent” section for the occasional high-priced treat; “Unusual” wines if a customer is looking for something new or “Classics” for gift-buyers looking for a safe bet. Price brackets are then used to subdivide the groups further.

“We aim to direct the consumer to the kind of wines that will be of interest, a selection of different wines that will all fulfil their requirements.” If the wines are arranged by region, Cameron argues that the presentation does not encourage shoppers to explore the category fully. Regions, he says, “just create boundaries”.

Bespoke service
While the big brands in the supermarkets may offer the signposts that give consumers the confidence to widen their repertoire, only the dedicated specialist is able to provide the personal advice and bespoke service that gives the shopper the confidence to truly explore what’s on offer. “The essence of being a good independent retailer is all about providing a safety net, but also knowing when it’s time to take the safety net away.” And the benefits of providing such a service are twofold. Not only is the retailer able to gradually trade the consumer up to higher value wines, but also making the right recommendations inevitably increases loyalty, so repeat customers are a regular feature coming through Lewis & Cooper’s doors.

Events are one of the most effective strings in the successful independent retailer’s bow – and in this respect the Northallerton store has a particularly notable advantage. On the third floor is an 80-cover tea room – which is regularly turned into a tasting room for evening gatherings. The company also often links up food and wine tasting events, increasing the opportunity to link sales throughout the store. At a recent event, for example, guests were instructed how to cook a full Italian meal then recommended a selection of wines to accompany it. Then, presumably, they were politely shepherded downstairs with a shopping list in hand…

There were a host of reasons why the judges selected Lewis & Cooper as the nation’s number one independent wine retailer. In an increasingly homogenised and impersonal world, one of the most compelling reasons was because going into the shop felt “like stepping back in time”. Cameron recognises that this traditional olde worlde feel is a key strength of the business. However, he stresses: “We can’t let that prevent us from being innovative and creative in the way we communicate with customers. We live in a dynamic retail environment – so the independent retailer has to adapt or become an anachronism. If you’re billed as traditional you’ll become a museum with heavy footfall, but not converting this into sales.”

Cameron continues: “We capitalise on the traditional feel of the store, but make sure that they leave with a bottle of wine too.”

© db July 2007