Managing Director of Top Cellars Group and newly appointed Liquor Stores Association NSW (LSA) President, Paul Heilman, purchased his first liquor store in his hometown of Cowra in 2005. Since then, he has built six more stores, selling just one along the way.
At the 2016 Retail Liquor Industry Awards for Excellence held on Friday November 18, three of Heilman's stores made it to the top 10 in their categories, with his Cellarbrations Stockland Baulkham Hills store winning the overall runner-up for Metropolitan Liquor Store of the Year.
Heilman spoke to drinks bulletin, sharing his tips for success and growth and providing an insight into his current business model.
Paul HeilmanAll Heilman’s stores are currently bannered with Cellarbrations, providing him with a base promotional programme and a disciplined approach to purchasing and merchandising. However, Heilman said this only covers the “commercial lines”, and the key to success is having the right team and a strong customer focus.
“To have a good business you need good people. I’m lucky to have a good team that is passionate out the industry," Heilman said.
“Like any business, you need to focus on the customer and what they want – not what you want or what you think they want. While data from macro market trends can help you tailor an offer to the state, we still take the extra step and engage shoppers to find out what they want. We’re not afraid to call it when something doesn’t work and move on.
“We need to tailor the store’s offer to each local community we work in. We engage with suppliers to tailor the product offering to deliver what customers want.”
While each store has a different clientele, Heilman said that trends in one store can predict product demand in others.
“We know that Newtown is very much on trend with what’s new and interesting in the city fringe and bar scene. We know that these products will probably translate to demand on the north shore a couple of months later, and possibly to other stores in time. So what’s happening in Newtown is a good barometer for the rest of the stores,” Heilman said.
A unique aspect of the Top Cellars stores is its tasting programme, which Heilman said is hugely beneficial for sales.
“A key to selling wine is to get it on customers’ lips, so we have a robust tasting programme built around wine preservation and dispensing systems in each store. This helps introduce shoppers to new brands, varietals and price points. It works seven days a week – great to have a rep in on a Friday night, but what about customers who come in on the other six days? Similarly, with the current trend in exploring whisky and other premium spirits, having tasting capability removes a lot of risk from the purchase,” Heilman said.
When looking to expand, Heilman said that finding the right location is a challenge in New South Wales.
“One of the most important criteria for building a new store is selecting a site and the key thing is of course location, location, location. In NSW, I’d say all of the “A Grade Sites” are gone, even most of the good “B sites” are gone too. It’s a matter of being patient and waiting for a bad “B Site” or a good “C Site” – I’ve twice waited three years,” Heilman said.
When asked what he thought contributed to his stores’ success at the Retail Liquor Industry Awards for Excellence, Heilman said, “There are always two sides to the award judging – I call it hardware and software.
“I’ve provided the managers with good hardware – they have shops that are only three years old, wine tasting dispensers;I buy them cleaning equipment, and we do most of our optional or grey-space ranging by consensus with the managers…what they do with it all is primarily up to them.
“As for software, we have both skills and product training, but most of it comes down to the attitude of the managers and their teams. I encourage them to consistently be professional and showcase the store and what we offer to every customer every time. Customers have a choice where they spend their money – we hope they will spend more with us than others because of our overall retail offer,” Heilman said.
And how did Heilman and his team feel at the Awards, seeing his stores recognised in the industry?
“I was thrilled on Friday night. I think the managers couldn’t believe it when their stores were announced in the Top Ten – I had to repeat it to them and coax them onto the stage,” Heilman said.
Top image: Heilman's North Ryde Cellarbrations store
You may also be interested in NSW Retail Liquor Industry Awards For Excellence Results
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