Counter Space Arbitrage

A retail arbitrage opportunity to control and monetize premium counter space at liquor stores by renting counter space in bulk and reselling it to major brands/manufacturers.

Key Points:

• Target Market Opportunity:

  • Liquor stores are highly fragmented market
  • Mostly independent/mom & pop operations
  • Counter space is valuable but underutilized compared to other retail
  • Less cluttered than gas stations, grocery stores, etc.

• Business Model:

  • Rent counter space from thousands of liquor stores
  • Aggregate the counter space into a large network
  • Sell premium placement to major manufacturers (like Nabisco)
  • Control distribution rights for counter displays

• Key Advantages:

  • Fragmented market makes it easier to negotiate with individual stores
  • Can create value by bundling thousands of locations
  • Manufacturers want access to premium retail placement
  • Limited competition for counter space in liquor stores

• Revenue Stream:

  • Make profit on spread between:
    • Cost of renting from liquor stores
    • Revenue from selling placement to manufacturers
  • Scale through volume of locations

The core insight is identifying an overlooked but valuable retail asset (counter space) in a fragmented market that can be aggregated and monetized at scale.