Local contract store operators stay in the business and hope to compete with bigger stores come June
By JAMES EIK
Staff Reporter
When June 1 arrives, numerous liquor sales licenses will take effect.
Several West Plains retailers have applied for a license following the passage of I-1183 last November, which allows for some private stores to sell liquor.
In Cheney, Bi-Mart, Safeway and the existing contract store have all applied for liquor sales licenses, as of data available Monday, April 9. Both Bi-Mart and Safeway's applications are pending, each having submitted their respective forms last year.
Medical Lake's contract store could see some competition, with Denny's Harvest Foods' application March 22. The state liquor board's decision for the retailer is still pending.
Airway Heights will also see three potential spirits retailers. Walmart's license has already been approved, following its submission in July last year. Yoke's Pac n' Save's application is still pending, after it sent in its application January 23 this year.
For a complete list of liquor applications, and to see current beer and wine permits, visit http://www.liq.wa.gov/records/frequently-requested-lists.
Stores seeking to acquire liquor licenses must have a minimum floor space of 10,000 square feet.
Current state-run stores must make a successful bid in an auction later this year if they want to continue operating.
Tillman Carr operates Contract Store 591 in Cheney and plans to take over ownership of the business in June.
His store is located right next to Safeway in the Cheney Plaza at Betz Road and First Street, and two other retailers within a half mile of his store will sell liquor starting this summer. Nevertheless, Carr is confident in his choice to continue operating the store.
“It was a no-brainer,” he said. “We've been in this business for 10 years and we're going to stay in it.”
Carr acknowledged the competition that will come when the other stores stock their shelves with spirits, but said he planned to wait and see how that competition affects his sales.
“Our customers have been telling us that they will stay with us,” he said.
Kelly Osterberger, owner of Contract Store 684 in Airway Heights, said she plans to continue the store past the auction despite the added competition nearby. She said some buried issues in the initiative should have discouraged its passage.
“I was disappointed, but not surprised,” on I-1183's passage, she said.
Specifically, she said the buying power of bigger retailers like Costco and money paid to the state from distributors should have been a larger issue in the election last year. In addition, she expects a majority of liquor prices to increase, based on the state's tax structure. Also in question is how or if customers will make a change to their liquor purchases in seven weeks.
“We'll see what they want in the future,” Osterberger said.
The added competition will be difficult, Osterberger said, since other distributors won't release their prices in the way that state contract stores currently do.
“It's unknown what the prices will be elsewhere. Those distributors don't have any prices listed for contract stores,” she said.
The Airway Heights contract store is located in a plaza that also contains Walmart.
“We'll just try and remain competitive,” she said.
Cheney staff reporter Becky Thomas contributed to this article.
James Eik can be reached at [email protected].
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