Alcohol retailers keep customers thirsty with the

retail cloud
Alexa Brown

Last year, demand at alcohol retailers, designated as essential retailers, spiked just as hard as it
did for grocery retailers. In fact, according to the International Wines and Spirits Record
(IWSR), US total beverage alcohol volume in 2020 was up 2%, the largest gain for alcohol
consumption in the country since 2002. We expect a  rise in volume by 3% in 2021. 

Between increased delivery and buy online pickup in-store (BOPIS) orders, alcohol retailers
adopted cloud technology to scale and meet unprecedented demand. Modern retail cloud
services and solutions enable alcohol retailers to meet supply chain demands, attract new and
retain existing customers and fulfill millions of new orders. Below, we're spotlighting alcohol
retailers who responded to the demand and accelerated innovation with the retail cloud.

Pennsylvania Liquor Control Board successfully migrates to the cloud with Oracle Retail

In early 2020, PLCB and Oracle were already working together as the state upgraded its tech
stack.

"As we're adding the ERP system overall, we're also changing the structure within the agency.
We buy alcohol, and we sell to our consumers; now we also have licensees," said PLCB
executive director Michael Demko. That change in business model triggered the need for new
technology to support the agency's evolving operations. "We realized we were running this as
a merchandising system, and we needed a forecasting tool," explained Demko. In selecting
Oracle to digitize the forecasting process, Demko explained, "it also opened us into the cloud
environment to see how the functionality would work, how the process would work."

With a massive transformation project spanning the entire state of Pennsylvania, the need for
dutiful governance and project leadership was evident. Choosing Oracle Retail to help PLCB
evolve to a wholesale model "made sense as we were using Oracle to run our business on a
day-to-day basis," continued Demko. "Having that omnichannel capability within the state to
service our customers that enter our stores, or our licensees gives us the ability to offer them
product at a great price while producing cash flow for the state." Watch our conversation with
Michael Demko.

ABC Fine Wine & Spirits manages a 2,000% spike in ecommerce orders with the retail
cloud

One retailer that had to contend with a sudden shift toward ecommerce was ABC Fine Wine &
Spirits, which saw a 2,000% YoY increase between early spring and mid-summer of 2020. To
manage the rapid jump in demand, the retailer leveraged their physical stores, mobilized the
team, created new processes overnight and leaned into its partnership with Oracle to bring

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BOPIS, delivery, and omnichannel retail capabilities up to speed in a hurry. The effort paid
off, and ABC continues to refine its efforts amid positive customer responses to its new
customer service model.

Sean Kelly, VP and Chief Marketing Officer at ABC Fine Wine & Spirits explains,
"Overnight, the operations needed to change and react to consumer demand safely. We took an
all-hands-on-deck approach. We didn't have time to research the details of the perfect curbside
model. We had to test and try and refine as we went along. Sometimes you just have to get
moving and do it."

Kelly's advice to retailers to just get started.  Never waste a crisis, as the CEO of ABC likes to
say. Misfires are frustrating but may result in the growth you were looking for. Don't be so
cautious. Most importantly, figure out what is viable, get going, and adjust quickly to make it
better. What are you waiting for? advised Kelly. 

Dubai Duty Free completes upgrade of Oracle Retail release 16 in 8 months

In less than eight months, Dubai Duty Free completed its upgrade of Oracle Retail
Merchandising System, Price Management, Invoice Matching, Sales Audit, Warehouse
Management, Store Inventory Management, and Retail Insights. The upgrade project also
included interfaces to e-commerce, the point-of-sale (POS) retail system, warehouse
automation, and the Oracle E-Business suite.

The new functionality increases user productivity through exception-based retailing, persona-
specific dashboards, operational efficiencies, and widespread mobility. Additionally, the new

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technology allows click and collect with accurate retail inventory visibility and best-in-class
processes with Oracle Commerce and Oracle Retail.

"Oracle understands the Middle Eastern market and is constantly extending the breadth and
depth of its applications to match the challenges of modern organizations in all industry
sectors," said Ramesh Cidambi, Chief Operating Officer, Dubai Duty Free. "Dubai Duty Free
incorporates Oracle Retail solutions that reflect the retail expertise, knowledge, and
understanding that we need as our business continues to grow."

goPuff supports explosive growth by standardizing on Oracle

In November 2020, goPuff agreed to acquire BevMo—an alcoholic beverage chain with 160-
plus stores in California, Washington, Oregon, and Arizona—with which it plans to integrate
its innovative fulfillment and distribution tech platform.

"It's really important for us that we have one single source of the truth across our enterprise,
and that means making sure that our front end and our back end are fully integrated. When we
think about a big acquisition such as BevMo! that is strategic for us, we want to make sure that
we are optimizing the value there. Oracle is going to be a key partner to us in that," Josh
Burke, CFO, goPuff.

The company implemented Oracle Fusion Cloud ERP's accounting module in 2019, then its
forecasting and financial planning modules the following year. These were the first steps
toward implementing a cloud strategy that now includes Oracle Fusion Cloud EPM
(Enterprise Performance Management) and Oracle Cloud SCM (supply chain management and
manufacturing).

Looking ahead, the fact that Oracle Cloud applications work seamlessly with one another and
with third-party applications makes integration of the BevMo acquisition less daunting,
helping goPuff further scale its business. "Oracle will be at the center of what we're thinking
about in terms of future acquisitions," Burke says. Way to go, goPuff!

How to thrive as an alcohol retailer:

As the alcoholic beverage market continues to flourish, alcohol retailers must ask themselves,
how will we keep up with demand and evolving consumer expectations? Our recent consumer
research uncovered just how quickly consumer demands are changing and how retailers can
stay ahead of these shifts:

 Meet your customer at the point of intent: 71% of consumers respond that speed of
service, checkout experience, and delivery options are essential. Curbside pickup and
home delivery are part of the new normal. 

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  Keep your cabinets stocked for inventory transparency: 47% of consumers polled
associated out-of-stock items with a bad shopping experience, and 63% would seek an
alternate store to purchase the items.

 Retain customer loyalty with compelling offers: 82% of consumers purchased

alcohol during the pandemic. Consumers expect compelling offers to pique their
interest among the competition.  

Think responsibly, three strategies to leave them wanting more:

 Strategize stores and stock: How can you ensure the right inventory at the right time,
in the right channel, and in front of the right customer? Modernize retail inventory
strategies

 Stay relevant with contactless retail: What steps are you taking to shift business
practices to meet new customer behaviors and buying journeys, like BOPIS or curbside
pickup? Reimagine the future of retail

 Fuel cutting-edge personalization: How do you enable next-level business thinking,

including accurate demand forecasting, customizable marketing, and optimized
omnichannel inventory? Leverage retail science