Alcohol retailers are looking forward to a successful holiday sales season, according to a new fourth-quarter Drizly Consumer Insights Report. For the report, the online alcohol retailer conducted a survey of 500 managers and owners of independent liquor stores, with a majority expecting holiday sales to be at least on par with last year and 44% predicting sales will exceed last year’s turnover.

While sales in other sectors may suffer this holiday season, alcohol sales are holding strong, and retailers are optimistic. 

“Despite an overall weakened economy as a result of the pandemic, over 62% of retailers surveyed expect holiday season sales to at least match those of a typical year,” said the Drizly report. “However, for some retailers, the pervasive uncertainty of 2020 will remain the story of the holiday season: 22% of respondents report being unsure of what to expect for Q4 sales.”

COVID effect turns chronic

The COVID-19 pandemic has deeply impacted on-premise alcohol sales, pulling a significant portion of consumers to off-premise locations. This has been bad news for bars and restaurants, but good news for liquor stores and other alcohol retailers who have been scrambling to keep up stock. According to Drizly sales data, bar essential purchases (such as liqueurs, cordials and schnapps) are up 600% in 2020 compared to last year, proving that consumers have been drinking more at home.   

However, as the pandemic rages on and new surges of the virus hit hard this December, uncertainly is abound, despite alcohol retailer optimism. In order to ensure a successful holiday season, independent stores can look for strength in e-commerce.  

The pandemic and subsequent lockdowns have done wonders for alcohol online sales. Another Drizly report found that 72% of survey respondents expected a majority of their alcohol purchases to be made online across the next year. This, in part, has much to do with a rise in e-commerce awareness. 

“As recently as late 2019, according to Drizly partner research, 45% of Americans of legal drinking age weren’t sure if they could legally buy alcohol online,” reported Drizly. “That number has almost certainly shrunk considering consumers’ rapid discovery and more regular usage of alcohol e-commerce platforms and delivery services since March 2020.”

Unexpected benefit to retail outlets

In addition, e-commerce sales are also playing a big role in getting more customers in stores.

According to Drizly, “Retailers who may have been once reluctant to sell online or offer delivery — and may have done so out of necessity once in-store shopping restrictions were imposed — discovered that online sales were additive to in-store sales once restrictions were loosened, while also producing higher register rings in-store.”

Drizly has projected that within the next five years, online sales could grow to comprise 20% of all alcoholic beverage purchases. 2020 has been a difficult year for many people and a time of great uncertainty. Despite this, however, one thing is for certain — the global pandemic has permanently impacted how consumers purchase alcohol.  

Stephanie Meade
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