Liquor Store Inventory Management: How To Optimize Your Product Selection

Even the smallest liquor stores have a ton of different products. From champagne and tequila to hard seltzers and aperitifs, there is certainly a lot that liquor shop owners have to think about. Beyond those standard boozy products, liquor store owners must ponder all those non-alcoholic retail items, too - sodas, mixers, bundled kits, bar tools, etc.

This merchandising is certainly a major part of running a successful liquor store. Businesses must target their niche customers, respond to demand and utilize inventory management software to stay organized. In addition, powering smart promotions, and opening up sales to multiple channels will ensure cash flow and product movement.

Read on for an in-depth guide about liquor store inventory management and how to optimize your product selection.

Work With Powerful Inventory Management Software

The first and most important step for liquor stores to take is to invest in a modern, cloud-based, liquor store point of sale system. The point of sale does so much more than simply process transactions: it’s essentially the hub through which you run your entire businesses.

Inventory management is an indispensable element to the point-of-sale software package. Utilizing tools such as automatic ordering, optimized stock numbers, and product reporting help inform, illuminate and demystify all aspects of your inventory.

A modern POS should also provide actionable product performance and sales data with features like ABC analysis and various key performance indicators (KPIs). These features take away so much of the guesswork and deliver insights to liquor store owners so they can make informed decisions about their inventory.

Respond To Consumer Demand

Stocking the right amount means limiting your product numbers based on the demand of your clientele. At the end of the day, it makes the most sense to tweak your stock to cater directly to your customers. The goal is to reach that sweet spot where you have all of the products that your customers desire without holding too many items that are stagnant and tie up cash flow and inventory space.

Again, your POS reports are your ideal place to look for stock level predictability. Review your previous sales data to see what items you need throughout the year. Often, these numbers are affected by seasons, holidays, sporting events and other random trends.

You should supplement this data by keeping up to date with all of the latest trends in the industry. Be sure to read online magazines and blog posts. Try asking your customers what they like to drink, or getting feedback when regulars try new items at your store. Situating sales data and customer preferences within the bigger picture of the industry at large will steer you in the right direction.