Why hundreds of liquor stores are set to close

John Frank | Axios Denver | Dec. 9, 2024 | Original Source

Illustration: Sarah Grillo/Axios

Dozens of liquor stores are shutting down and hundreds of additional closures are expected now that wine and beer is available at Colorado grocery stores, a new analysis shows.

Why it matters: The shift — prompted by new laws and a voter-approved referendum in 2022 — created new winners in the retail marketplace and hurt small businesses.

State of play: According to independent liquor store owners, the most visible impact of the increased availability of boozy beverages is a decrease in foot traffic by one-third, if not more than a half, the Denver Gazette reports.

• Peter Cook, owner of ACME Liquor Store in Crested Butte, said he saw wine sales immediately drop 35% when grocery sales were allowed starting in March 2023.

• Bruce Dierking, co-founder of Hazel's Beverage World in Boulder, knew the impact would be significant, but he says it was worse than expected.

What they're saying: "Bigger pockets than me blocked me out. Colorado is a horrible state for small business and a great state for corporations," added Joe Brunner, owner of Lukas Liquors in Highlands Ranch, in an interview with the Gazette. His shop closed this summer after 27 years.

By the numbers: The number of liquor store closures is largely obscured in the data because owners don't need to report closures and continue to hold licenses. But the data shows at least 30 stopped operating since early 2023, the newspaper found.

What to watch: The closures are expected to accelerate. Industry watchers predict that hundreds more will close by 2026.

The other side: The trade association that advanced the ballot measure to allow wine sales in grocery stores and big box retailers said the closures reflect consumer preference.

• "As we said for at least a decade, the customer ultimately wins and the prices are really appealing and the convenience is there," Chris Howes at the Colorado Retail Council said.