The Changing Face of Wine Retail

Costco has long been a leader in retail, known for its dominance across categories and its impressive ability to offer quality and value at scale. Among its many achievements, its wine department earned a reputation for affordability and reliability, becoming a go-to destination for wine shoppers. Yet, as consumer preferences evolve, so too has the hierarchy of wine retail. Today, Total Wine & More has overtaken Costco as the largest independent retailer of fine wine in the United States. This change not only highlights a shift in consumer behavior but also redefines what it means to succeed in the wine and spirits industry.

Total Wine & More achieved this milestone by offering more than just a vast inventory. While its 263 stores may be fewer than Costco’s global footprint of over 800 locations, its focus on specialization has made all the difference. Each Total Wine location boasts a selection of over 8,000 wines, sourced from regions across the world to cater to every palate and price point. Whether it’s an approachable weekday bottle or an exclusive vintage, the breadth of choice has become a hallmark of the Total Wine experience. In 2023, this strategy helped the company generate over $6 billion in revenue, surpassing Costco’s wine sales despite the latter’s larger overall reach.

The appeal of Total Wine goes beyond its extensive inventory. The company actively monitors competitor pricing, including Costco’s, to ensure it consistently offers some of the best deals in the market. By leveraging its buying power, Total Wine passes significant savings onto its customers while maintaining a standard of quality. However, it is the customer experience that truly sets it apart. With hundreds of trained wine experts on staff, Total Wine offers personalized service rarely found in large-scale retail settings. Employees undergo weekly training sessions, tastings, and seminars to stay informed, ensuring that they can guide customers toward the perfect choice for any occasion.

For the wine industry as a whole, this shift underscores the growing importance of specialization and customer engagement. As consumers seek more curated and educational experiences, retailers like Total Wine demonstrate how adapting to these expectations can drive success. This evolution has also created opportunities and challenges for producers and distributors. Total Wine’s expansive inventory provides a platform for wineries and distilleries to showcase their products to a broader audience. At the same time, its scale and emphasis on affordability place pressure on suppliers to meet high standards while remaining competitive.

Costco’s decline in the wine category is not a failure but a reflection of changing priorities in the retail landscape. The company’s bulk-buying model continues to excel in other areas, but its approach lacks the tailored touch that many modern wine consumers now expect. For industry professionals, this moment offers valuable insights into how the market is shifting and what strategies may be required to stay ahead.

Total Wine’s rise is also a testament to deliberate and sustainable growth. The company expands carefully, opening new stores only after conducting thorough market research to ensure profitability. This disciplined approach has allowed it to flourish without overextending itself, setting an example for other retailers in the industry. By prioritizing selection, affordability, and expertise, Total Wine has not only taken the lead in wine sales but also redefined what consumers can expect from a wine retailer.

The wine and spirits industry is at a pivotal moment. As Total Wine continues to expand and set new standards, other retailers and suppliers have an opportunity to reflect on their own approaches. Whether through innovation, better customer engagement, or a focus on niche markets, adapting to these changing dynamics is essential. The rise of Total Wine serves as a reminder that success in today’s market requires more than volume; it demands a commitment to understanding and meeting the evolving needs of consumers.