Monday, January 12, 2015

Sunday Sales: Why Not?

Once again, the start of the Indiana General Assembly has led to some buzz about Indiana further tinkering with the odd set of alcohol regulations the state has shackled itself with for a long time. Visitors and newcomers alike often wander why all the liquor store parking lots are empty on Sundays, and why the alcohol section at Kroger is blocked off by a chips display?

It is because the state of Indiana does not allow alcohol sales on Sundays at the retail level. Over the last several years, our lawmakers realized that prohibiting alcohol sales for one day a week could be bad for business. They've made exemptions for bars and restaurants, for breweries, wineries, and distilleries. You can get your drink on at the Sunday Colts game or any sporting event that has an alcohol license. But the ban on retail purchases still remains.

A bill has been introduced in the Indiana General Assembly, but it is by the same representative who has sponsored it before. This NPR Article from two years ago highlights the main arguments pretty well from two of the leading lobbyists, one from the convenience and grocery stores and another from the package liquor stores.

You're familiar with the argument by now. That allowing the retail sale of alcohol on Sundays could be devastating to the package liquor store industry, that it could be a job killer, that up to 25% of them could end up closing and that this is a mega corporate takeover trying to push down the little guy.

Welcome to the big boy world, package.

Can I call you package?

Listen, I'm sympathetic to the argument. I am no fan of corporations trying to beat down independent, locally owned competition. I personally have gone out of my way to support mom and pop shops, even if it costs me a few extra bucks. I think consumers will pay a premium for premium service. I think a package liquor store, being smaller, will be able to more quickly respond to consumer demand than a gas station chain or a grocery chain. The guy who does the ordering for the chains might not even live in the same city as the store, or even the state!

But if you provide a quality service, people will come. They'll come and they'll spend their money.

Look at the cultural district of Broad Ripple within Indianapolis. There is a Starbucks right in the heart of it. But there's at least three independently owned coffee shops within blocks of it, two of which have been open for business for several years.

Look at music stores like Luna Music and Indy CD and Vinyl in Indianapolis, Landlocked Music in Bloomington, and Von's Records in West Lafayette. Music sales, including digital, are plummeting. Megastores that used to be major shopping attractions in some of the biggest cities in the country are closed. Music and entertainment chains like Sam Goody or FYE are either shut down or closing shops across the country. Even the music selection at chain stores like Best Buy and Wal-Mart now takes up a much smaller space than what it used to be.

But these music stores are thriving because they are adopting to consumer demand. Admittedly, it is a niche market concentrated on vinyl records, used music, and in-store performances by local, regional, and national acts. But these stores stand strong despite stiff competition.

So if you are a package liquor store and you become like, THE one stop shop to get HOOSIER craft beer or some other niche, and you have a knowledgeable and friendly staff, I think you'll do fine. Mr. Livengood (can I call you John?), I won't even charge you or your association for that advice.

If all you do is charge $1-3 for a pack of Coors than what the grocery store is selling it for, then good luck with that.

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