Sunday liquor sales not spiking profits yet

Published 5:00 am Monday, August 5, 2002

SALEM – To help ease Oregon’s budget woes, legislators this spring gave the first-ever green light for state-licensed liquor stores to sell their wares on Sundays.

The expected spike in profits from the extra sales would help to plug a gaping budget shortfall, lawmakers said when they passed the legislation in February.

But preliminary figures that include the first three months of Sunday sales – now happening at 61 of the 237 outlets overseen by the Oregon Liquor Control Commission (OLCC) – show little indication that the change is making any appreciable difference on total alcohol sales in the state.

Stores opened on Sundays for the first time on April 14.

Total statewide receipts did climb to $254 million in the 2001-02 fiscal year, which ended June 30. But the 3.6 percent growth rate was less than the annual increase the agency has seen in recent years, said OLCC spokesman Ken Palke.

”It’s a little under the trend, but it still shows a trend of steady growth,” he said.

Sales in June 2002 actually fell by a half percent overall compared to June 2001.

Managers of the handful of Central Oregon outlets that open on Sundays, including stores in Prineville and Sisters, reported brisk business, much of it from tourists.

”It’s definitely worth it,” said Vicki Kisor, agent at the Prineville Liquor Store, 898 W. Third St.

”We’re only open five hours but we’re doing $1,000 to $1,500 in those five hours.”

But based on overall statewide figures, it seems unlikely that more alcohol is being sold because liquor stores are open Sundays. Rather, much of the business may be shifted from other days of the week and other stores.

Liquor stores in Bend, Redmond and La Pine do not open Sundays.

Cheryl Stoddard, agent at the Redmond OLCC location, said it’s not worth the extra labor costs and time to work seven days a week.

”I took a survey and most of my clientele doesn’t mind,” she said. ”They figure if you can’t make plans to get it by Saturday, you didn’t need it that bad.”

But she will take advantage of the new law and open on Sundays before Christmas and New Years Eve. She doesn’t expect to see a spike in sales, but it would spread the business in a hectic season.

Several other factors contribute to the state’s annual increase in distilled spirits sales, Palke said.

The state’s rising population translates into more buyers. And efforts by liquor brands to create and aggressively market new products, such as pre-mixed beverages, are attracting a wider customer base, he said.

Lawmakers anticipated that sales would jump by $6 million to $7 million in the 2001-03 budget cycle due to the Sunday sales. If that happens, the state would steer the first $3 million in net profits directly to the general fund, rather than sharing the revenue with cities and counties.

The estimate was based on an assumption that all stores would open, which hasn’t happened.

Palke said it’s still too soon to say whether sales will meet the Legislature’s goal because folks didn’t change their buying habits right away.

”It’s early yet,” he said. ”I figure, based on conversations that there is a racheting-up period to figure out among the public what stores are open. It’s a tough evaluation after the first 90 days.”

At the Sisters location, The Gallimaufry gift and liquor store, partner Claudia Grooney said the law change has helped sales and improved convenience for customers, many of whom were tourists who didn’t understand why the liquor section had to stay locked on Sundays.

”It’s nice that we don’t have to put up the signs that say you can’t buy it,” she said. ”I just think it’s something for better service.”

She doesn’t track whether some of the customers are making the drive from Redmond or Bend, but at least one person from Bend called on the first weekend to find out if the store was open, she said.

James Sinks can be reached at 503-566-2839 or at jamess@cyberis.net

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