My Take: Total Wine tests the waters in a two-store state

 Unlike some states and localities, Delaware has been generous in granting licenses. For example, fast-growing, Middletown has about  10 stores, many of which are on the large  side.

Don’t shed any tears for Total Wine

Interestingly enough, there has been no visible push by operators with two stores to expand their footprint.  The fear may be that it would allow bigger changes, like supermarkets and big box stores getting licenses. Current laws require, among other things,  a wall and separate entrance for the liquor department.

 The Total Wine  Facebook campaign, such as it was,  ended, and the post only generated a couple of comments, with one person claiming that the current system was just fine.

 Don't shed any tears for Total Wine. The company, which got its start in Claymont, is now the nation's largest alcohol beverage retailer, edging out Costco. Its goal is to grow to 300 stores this year.

The Claymont store, located in a strip center, has grown to 60,000 square feet and is one of the largest in the nation. A store in a Denver suburb has been declared the world's largest at more than 100,000 square feet.

Total Wine has a second store in Milltown, near the affluent Pike Creek-Hockessin area. That store is a mere 11,000 square feet, below the average 20,000 to 30,000-square-foot size of Total Wine locations. 

The privately held adult beverage retailer with $6 billion in total sales can afford to play the long game in Delaware and elsewhere. It's adept at dealing with the complex regulatory  framework governing alcoholic beverage sales in the U.S.

Sales dip biggest issue for package stores

Pennsylvania's more expensive state-owned liquor and wine stores have been a driving force behind the expansion of the Claymont store. If the Keystone State ever privatizes its system, Total Wine would want to be first in line.

In the meantime, a watered-down wine shipment bill awaits action from Gov. Matt Meyer.

The bill will have little impact on Total Wine or other retailers, given the restrictions that cleared the way for passage after a multi-year effort by State Rep. Michael Smith. 

A bigger issue for retailers nationwide is a decline in sales with the end of the COVID-19 pandemic and marketplace trends that include a smaller population of younger drinkers. Some are opting for abstinence, at least for the time being.  Also, marijuana use became a little easier with retail sales getting underway on Aug. 1.

Tweaks in Delaware law

A related issue is cannabis-infused beverages, which could be outlawed, but are providing at least a temporary boost for retailers.

Total Wine is well equipped to deal with marketplace shifts and could benefit from future changes that could occur if state budgets are strained and license fees look like an attractive option.

With reeent  tweaks in Delaware law that allow wine and beer shipments and restaurants and bars to offer deliveries, it's possible that package stores could get the delivery  option in a future legislative session.  - Doug Rainey, chief content officer.