Originally Published in the Australian and New Zealand Olive Grower and Processor

There are three specialty olive shops in adjacent suburbs in Melbourne, south of the river. All targeting the same market in different ways. The first to open was ‘Oliv’ in Hawthorn. Cleverly positioned close to a major crossroads, where parking is easy, Oliv is part of a cluster of up-market boutique shops in Auburn Road. Another olive destination, ‘Est’, manufacturer and retailer of extra virgin olive oil based soaps and cosmetics, is a few blocks away.

Further west, still in the affluent southern suburbs, ‘Nine Green Bottles’ has recently opened in the up-market Kings Arcade in Armidale. Down the road, opposite the popular Prahran Market and close to the busy Chapel Street shopping strip is ‘Oliveria’.

These three shops are typical of the new wave of boutiques that are trying to capitalise on the current high profile of olive oil. Yet they are very different in their approach. Oliv has a large range of local and imported olive oils and olive-themed homewares, with associated food such as balsamic vinegar and bread.

Oliveria seems to follow the style of the very successful French Olivier and Co boutique olive chain. O & Co, as they are known, is successful in Europe, whereas their attempt to establish the chain in Australia has been less so. The merchandise in the Prahran shop ‘Oliveria’ is stylish, the layout ‘stocky’ and the owners seem to have picked their market and position well.

Nine Green Bottles is different, and could be described as minimalist. It is a smaller arcade shop, where an exclusive range of entirely Australian olive oils and table olives are spread fashionably over the white walls and limited shelf space, interspersed with culinary books and homewares.

The shops represent different approaches to the same market. All are destinations and their success will depend on their ability to create a presence in their chosen location.

There is one major difference which may well make one the most successful. At Oliv you can buy coffee and sit down for a chat with friends – or pop in for coffees to take back to the office. The coffee machine is a cash cow and brings in the customers, many of whom impulse buy the array of olive and associated products.

Adding a food component to an olive destination takes the store to another level of food safety compliance and adds to the set-up costs – but this added investment may be the difference between staying open and closing.

Successful retailers know and understand the principles that are critical for success.

Successful retailers know and understand the principles that are critical for success.

The first is Place – where is your retail house, then what Product are you selling, at what Price and how are you going to Promote it. And, too often neglected, are the People you employ.