A new drinks retail concept launched in Brunswick East, Melbourne, is challenging long-standing conventions in liquor retail by simplifying product selection through categories based on occasion and budget.
Drop Shop was founded by Pinot Palooza creator and Wine Victoria chair Dan Sims, drinks retailer Courtney Keegan, and Common State founder Luke McKinnon. The business was developed as a convenience-store format for drinks. According to the founders, the concept responds to changes in consumer purchasing behaviour and aims to simplify product selection.
“We want to create a new category,” McKinnon said. “An occasion-based liquor format that strips out the clutter and speaks directly to the individual who’s tired of choosing between a warehouse and a wine lecture.”
Instead of organising products by region or grape variety, Drop Shop groups products by occasion and budget. Its wine range is divided into weekday ($15-25), party ($25-40) and fancy ($40-plus) categories. The same approach is applied across beer, spirits, RTD products and non-alcoholic products.
The range prioritises Victorian producers. While a typical bottle shop stocks more than 1000 wines, Drop Shop has room for about 150 products.
The store spans 60sqm and was designed by We Are Humble. Drawing on Japanese konbini culture, the layout is designed to simplify product selection. Products are arranged to support product discovery and purchasing decisions.
“We’ve created a space you move through instinctively and walk out of feeling good,” McKinnon said.
The founders say the concept responds to changing consumer expectations around convenience and product selection. They also see an opportunity to introduce new retail formats into a sector that has seen limited change.
“We’ve seen entire categories transformed by better retail,” McKinnon said.
Drop Shop’s occasion-based approach reflects changing purchasing habits. In China, Tims China is also adapting to consumer demand through food offerings and loyalty strategies.
