January 27, 2012 in Business

Liquor superstores scope out Washington sites

Total Wine announces opening of two stores in Spokane area

Tom Sowa The Spokesman-Review

Tags:CostcoInitiative 1183state liquor storesVino! A Wine Shop

An East Coast company calling itself a “wine superstore” has announced plans to open two stores in the Spokane area.

Representatives of the company, Total Wine, said those plans are the direct result of voters passing Initiative 1183, which ended the state monopoly of liquor sales in Washington state.

Total Wine has 78 stores nationwide that sell liquor, wine and beer.

“We think Washington is a unique opportunity,” said Phil Armstrong, the company’s vice president of real estate. “It’s not often you have an entire change from state-controlled stores to private sector (liquor sales).”

Before I-1183’s passage, private businesses were only permitted to sell beer and wine; hard liquor was sold only by the state or in state-licensed stores.

Total Wine is also planning to open locations in Seattle, Tacoma and Vancouver, Armstrong said.

Chain stores have begun targeting metro locations across the state. A number of reports have said Liquor Depot and Beverages and More have begun shopping for spots in the Puget Sound region.

Armstrong said no Spokane store locations have been chosen yet. Research suggests it would be best to open one store in north Spokane and another in Spokane Valley, he said.

Total Wine stores are usually 20,000 square feet or larger, hire about 30 workers, and stock their shelves from an inventory of up to 8,000 wine choices, 3,000 choices for spirits and 2,000 beers.

The new stores would not be able to open until after June 1, when I-1183 takes effect, Armstrong added.

The initiative won by 18 percentage points in last November’s election. A number of large retailers, led by Issaquah-based Costco, helped promote the plan to eliminate state control of liquor sales, which dates to the 1930s.

Area wine retailers say the arrival of a big wine seller will impact their sales, but they hope the pain is short-lived.

“It’s like a gorilla is moving into the neighborhood,” said John Allen, co-owner of Spokane’s Vino! A Wine Shop.

Allen said the goal is to stay focused on customer service and staff wine knowledge.

He acknowledged Total Wine will carry a vast inventory of beverages. The chain’s wine selection is roughly 15 to 20 times the choices Vino carries, Allen said.

But its size might also be Total Wine’s weak spot, because smaller specialty shops like Vino can offer customers specific guidance on how to find quality choices, he added.

Vino has 850 customers who have wine bins at the store. Those customers rely on staff recommendations and stay loyal because they like the choices recommended by the store, Allen said.

Jeff Postlewait, co-owner of Bottles, a beer and wine specialty shop in Millwood, said he sees a likely impact on sales but hopes customers see his shop as a friendly neighborhood dealer with a focus on customer service.

Postlewait sees one upside in the arrival of Total Wine: a consolidation of the numerous wine retailers that dot the Inland Northwest. The area has so many wine sellers that the market is saturated, he said.

The sellers that will survive, he added, are the ones that “find their niche.”

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34 comments on this story so far. Add yours!

fishinjay on January 27 at 8:15 a.m.
C’mon BevMo….
Bruce (aka thatoneguy) on January 27 at 8:54 a.m.
Is it OK to refer to them as “Stuporstores”?
Lulubelle on January 27 at 9:07 a.m.
Thanks a lot Costco……more profits heading out of State. Hope it cuts into your bottom line.
cwbreck on January 27 at 9:31 a.m.
You’re right Lulubelle …booooo–take your 30 jobs per store and sales tax revenue and shove it— Super Wine Store!!! Great point Lulu—well thought out
liberal_in_right_wing_land on January 27 at 9:59 a.m.
Still glad I voted against that stupid initiative.
986crazy on January 27 at 10:18 a.m.
fishinjay: Right on!
BEVMO! BEVMO! BEVMO!
pmbrown49 on January 27 at 11:57 a.m.
“Thanks a lot Costco……more profits heading out of State. Hope it cuts into your bottom line.”
Guess we should also get rid of all the grocery chains and gas stations that aren’t headquartered in Washington since those “profits” go out of state.
If Costco is headquartered in WA, wouldn’t “profits” on liquor sales at Costco stay in WA?
johnclarke on January 27 at 12:26 p.m.
I know, I just love that complaint about Costco - a startup company that was founded in this state and employs thousands. The employees are very happy working there. I notice there is very little turnover. If you don’t like Costco you have plenty of choices for your shopping. Again, I applaud anyone that wants to shop elsewhere since you will now be out of my way.
People that are loyal to well run locally run businesses like Mr. Allen’s Vino will continue to support him. Note that Costco sells wine now, and Vino and Bottles are apparently still in business.
Loudin on January 27 at 12:36 p.m.
Just what people around here really need: More access to more liquor. Ah Costco, your greed really is the American way!
BTW: Costco bought the election results, but now grocery stores and spirit specialty shops that are HQ’d out of state will take those profits w/them. So yeah, Costco profits may stay in WA in some manner, but overwhelmingly the liquor profits of Safeway, Albertsons, Fred Meyer and Walmart (eventually) will go elsewhere.
It’s so funny when people vote for something without looking past the immediate benefit to them (which here is based upon a race to the bottom in pricing). I guess when the statewide sales tax goes up to cover the lost WSLCB revenue and we’re sending the liquor profits out of state, people will finally wise up. Yeah, Costco really liberated us…
Loudin
Loudin on January 27 at 12:44 p.m.
John,
I think your criticisms of people who dislike Costco (which many of us see as a gussied-up Walmart) aren’t kosher considering you’re an unabashed fanboy (“Copper River Salmon”) and choose corporations over local small businesses (Egger’s Meats).
Many of us are just troubled by the fact that most people don’t shop at Costco compared to traditional supermarket chains. As such, all that revenue that was lost when the WSLCB lost the monopoly will now go out of state. As such, yeah…Costco is making a killing…but the legislature will adjust the state sales tax to cover the WSLCB losses. Don’t be naive enough to think they won’t: Just give them time and they’ll make sure to make up the difference (e.g., car licensing tabs).
Thanks to Costco, we’re all going to lose. They’ll make their profits, but we will have a higher sales tax and most profits from liquor sales will go out of state. Just so you can save a $1 when you pick up your Copper River Salmon.
Seriously: Try to see beyond one step in your future. Be pragmatic…
Loudin
johnclarke on January 27 at 12:49 p.m.
Whatever Loudin, I think your headgear is a little tight. You could make the same argument FOR ANY PRODUCT that is sold by a chain store. For that matter, where does a portion of the product go for each and every product sold anywhere? To the manufacturer, which is (brace yourself) out of state or out of the country.
“Costco profits may stay in WA in some manner, but overwhelmingly the liquor profits of Safeway, Albertsons, Fred Meyer and Walmart (eventually) will go elsewhere”
What about Safeway? Should we stop shopping there for food too because the profits go “out of state?”
The voters have spoken, get over it. I’m glad Costco stepped up and spent the money. Now I don’t have to go to some grungy little store with crappy hours to buy one thing.
dougfresh on January 27 at 1:04 p.m.
Loudin did you even read the studies done about the initiative passing? The state should be making MORE money than they were before.
Have you not seen the articles with the craft distillers whining about how their product will cost more due to the increased taxes?
This initiative is not going to make the sales tax rate increase.
http://seattletimes.nwsource.com/html/businesstechnology/2016583207_liquor23.html
“Those fees and other aspects of I-1183 would increase the state’s liquor revenue by an average of $36 million to $42 million a year during the first six years, according to the Office of Financial Management.
Local governments also would receive more money: an additional $31 million to $38 million a year on average over six years, the budgeting office said.”
Loudin on January 27 at 1:07 p.m.
John,
We’ve had this go-round before. You’ve publicly stated that you are:
1) An unabashed Costco fanboy;
2) You don’t shop local because it’s more expensive; and
3) You don’t believe that the state of WA is going to increase the sales tax to recover lost WSLCB revenue.
Give it’ll a little time, friend: You’ll be paying more for that Copper River Salmon (higher sales tax), more for that liquor (higher sales tax) and the profits will be going to the West Side or out-of-state. But I know, you can’t see beyond what’s in front of you, like so many people around Spokane. It’s all about saving a dollar today and screwing yourself tomorrow…
Loudin
Loudin on January 27 at 1:14 p.m.
Doug,
The same was said about car licensing and tab fees when TIm Eyman started down the initiative road. Are you paying what the initiatives mandated or are you paying more because the legislature moved to recover lost revenue?
The state is going to use the loss of the WSLCB monopoly to justify a sales tax increase, sooner or later. If you want to be in denial about that, fine…but it is coming.
Loudin
pmbrown49 on January 27 at 1:18 p.m.
Hey, when the first of the season Copper River Salmon (Chinooks) hit the market they are about $35/lb. I fail to see where sales taxes have much impact since not many are buying at that price.
dougfresh is right. The state should see greater revenues from liquor taxes than they did before. I also don’t believe (and never have) in the 42 years I’ve lived in this state why the state should have a monopoly on liquor. I personally only buy beer and wine (not a hard alcohol fan) so I won’t be affecting the state’s bottomline either way, but I don’t see this as an “essential service” that only the government is best suited to deliver to the people.
The_Seer on January 27 at 1:19 p.m.
loudin: See ya at The Met tonight with Jess!
dougfresh on January 27 at 1:21 p.m.
Loudin I wasn’t aware you were a statistician and did you own, in depth analysis that gave you this advanced knowledge of how much money the state is going to make or lose on on I-1183.
Would you mind sharing your findings with the rest of us un-informed Washingtonians? I’d love to see the details that the Office of Financial Management missed.
greenlibertarian on January 27 at 1:25 p.m.
NO ONE can be as certain as you are Loudin until we see how this thing shakes out and that will take a least a year for prelim data, and a couple years after that to get a reasonable handle on it.
fishinjay on January 27 at 1:30 p.m.
I’ve lived in many states where liquor is available at grocery stores and super stores and have seen any of the gloom and doom predicted by those who opposed 1183. Prior to the vote I even posted on the Spokesman’s comment threads NTSB vehicle accident statistics that show no difference between Washington and other states without state run liquor stores (except that Washington has higher vehicluar death rates per capita than most of those other states).
I buy local whenever possible, but I also value choice and convenience. My career moves me around every 3-5 years, and when I lived in places like Arizona and California I had better choice and convenience. I’m looking forward to stores like BevMo coming to Spokane, and the ability to buy a large bottle of Johnny Walker Black from Costco for $15-$20 less than at the state run liquor store. If the state would have provided the same level of convenience at the same prices then I wouldn’t have cared about 1183.
Loudin on January 27 at 1:46 p.m.
Seer,
I’ll be there! Make sure to bring headgear and a Journey tape.
As for you sadly naive Costco fans…it’s really troubling that you don’t think our legislature (you know, Olympia) isn’t going to find a way to justify raising the sales tax. Again: LOOK WHAT HAPPENED TO CAR TABS! They said we’d pay $35. WHAT DO YOU PAY NOW?
Safeway is HQ’d in CA, Fred Meyers in OR & OH, Albertsons in ID, Walmart in AR…only Costco, a minor player, is HQ’d in WA. Profits will go out-of-state, small businesses will go under (due to skinflints like JohnClarke) and the state will seek to recapture lost revenue through increased taxes. But hey, as I’ve said before, many of you can’t see the forest through the trees…
Yeah, greater access to liquor w/short-term lower prices should really add value to Spokane. And the funniest part is that Walmart is targeting the PNW for expansion of their Sam’s Clubs stores. So Costco will have an uptick thanks to hart liq sales, but then SC will come into our community and hammer them (like w/how Walmart Supercenters hammer traditional supermarkets). Sure, you’ll have people like John that hate local small businesses, feel good about shopping at Costco because of some misplaced altruism that a $14/hr wage is all the money in the world and will continue to shop there. But alas, most people will follow the “falling prices” chain and Walmart will become the #1 purveyor of hard liquor in our state.
That’ll be awesome…really something to be proud of.
Loudin
greenlibertarian on January 27 at 2:04 p.m.
All speculation with some odd dollop of resentment and an air of superiority, Loudin.
When I was in CA recently, we did a fair amount of entertaining and that meant booze. I shopped Mom and Pop hole in the wall liquor/package stores, Bevmo, chain grocery stores, and a Costco. Prices didn’t vary much more than 5-10% and not always in favor of the big outfit.
I still wouldn’t presume to know what it’s going to look like here in a couple of years.
If prices come down in eastern WA, perhaps the Post Falls liquor store won’t be the busiest in all of Idaho anymore.
Idaho’s looking to dereg liquor too, and despite the LDS influence, I do believe that will happen in a year or two.
johnclarke on January 27 at 2:32 p.m.
We’ve had this go-round before. You’ve publicly stated that you are:
1) An unabashed Costco fanboy;
2) You don’t shop local because it’s more expensive; and
3) You don’t believe that the state of WA is going to increase the sales tax to recover lost WSLCB revenue.
Loudin, I don’t recall making any of those statements, or being a “fanboy” of anything. You simply do not like being proven wrong - on a regular basis. Also, Costco is a public company (which I’m sure you must realize) so it’s profits don’t “stay” anywhere except in the form of dividends to the stockholder. Furthermore, I don’t know how I became a “skinflint” by purchasing USDA Prime meat. Is there another place in town that has this grade of meat?
I feel like you should take all your energy and direct it elsewhere. Costco and other public companies are not your enemy pal. The people they employ live here.
Loudin on January 27 at 2:39 p.m.
No dollops or anything, GL.
I just think that the last thing this community needs is greater access to cheaper liquor…this whole argument about liquor privatization sort of illustrates the misplacement of priorities among our residents.
Imagine if people got so excited about physical exercise, dental care, education and civic pride…it might go a long ways towards taking the “Spokompton” out of Spokane. Alas, maybe a lot of this support for privatization has it’s roots in substance abuse. When I reflect upon John Clarke’s fervent defense of the initiative and Costco, I didn’t take into account that he (like a lot of Spokane citizens), might have an alcohol issue. Not saying he does, but going balls-to-the-wall over something so mundane as alcohol should really be at the bottom of our community’s list of things to do.
Maybe it’s just a lifer locals thing…this isn’t exactly the healthiest city in America (by a long shot). People love their booze. Teeth? Ah, not so much.
Loudin
Note_to_Self on January 27 at 2:50 p.m.
I voted against the initiative. I think the state should control the sale of hard liquor. I’m not a teetotaler but alcohol does cause a few social ills that the state, in one way or another, ends up paying for. And for one thing, the state stores do a good job preventing sales to minors. I think that is going to get a whole lot harder to manage if you can buy it in the grocery store.
I would even take it one step further and legalize marijuana and sell it out of state run stores, then take all the money we have spent on a failed social policy and spend it on education and treatment programs.
dougfresh on January 27 at 3:15 p.m.
wow now Loudin is accusing another poster of being an alcoholic. Classy!
I happen to enjoy both my perfect smile and booze, and whatever the hell else I want to put into my body.
Seriously get over yourself. People are going to buy & consume alcohol regardless of if it is sold out of state owned or privately owned stores.
The main point here is does the state NEED to be controlling the sales of hard liqour? I can currently buy wine, beer, mad dog 20/20, olde english high gravity malt liquor, and a variety of other intoxicating concoctions at any grocery store.
Whats the harm in adding liquor? I can go to any bar in town and slam back 5 double jack daniels at 1 AM if I please, but I can’t pick it up at a grocery store while i’m doing my other shopping?
The stores do just fine responsibly selling alochol, as they have proved through sales of non-liquor items, and the great number of other states that also sell liquor in their prviately owned stores.
And yes, conveinence is a good thing. I don’t really enjoy driving miles out of my way and burning extra fuel in my car to pick up a botlte of whiskey. I’d much prefer to do it while I’m at costco or the grocery store.
johnclarke on January 27 at 3:18 p.m.
Loudin on January 27 at 2:39 p.m.
When I reflect upon John Clarke’s fervent defense of the initiative and Costco, I didn’t take into account that he (like a lot of Spokane citizens), might have an alcohol issue
And, when I reflect on this childish attempt to get a rise out of me, and your inability to discuss this topic on it’s merits - I will bid you good day and encourage you to seek professional help for your issues.
Loudin on January 27 at 3:34 p.m.
Dear John,
Don’t go Sipowicz on me, brother (or, in your old-timey way, Foster Brooks). If you need a sponsor, I’m there for you…
BTW: I was sincere w/regard to you possibly have a substance abuse issue. Many people around this city have one, though they’ll deny it because one must hit rock-bottom before they can change. You’ve been very vocal on this WSLCB issue, so I don’t think it’s out-of-bounds to suggest what I did. But if you are relatively functional when you use alcohol, then I won’t pay further heed.
Loudin
PS: I’m serious about sponsorship. Moezy’s has a pay phone…use it.
RedCedar on January 27 at 5:00 p.m.
My goodness. Somebody’s sure got his knickers in a twist today. Maybe a nice glass of wine would help.
johnclarke on January 27 at 5:10 p.m.
I know, right.
Personally, I hate stupid business practices. I hate having to drive to a special store to buy one thing, to deal with generally uncaring and semi-rude state employees (although not all of them are) because some uppity group of uneducated slobs thinks it makes sense. In spite of the massive amount of data to the contrary, you have some folks that just will not shut up. Then, they start with the name calling and insults. most likely because they can’t stand losing or they are just another keyboard coward. These are the same simpletons that argued against Trader Joes; another “keep it local” argument that literally makes no sense at all.
Funny thing is, I don’t even drink liquor. The only time I buy it is for guests, or when the wife and girlfriends want a Lemon Drop….and of course I will drive to Post Falls to save 10 bucks. Now if you excuse me, I’m going to go to Costco and stock up on smoked salmon from Alaska and red wine from Yakima Valley.
terryalan on January 27 at 9:24 p.m.
Ahhh JC..Loudin truly seems to be one of the most judgmental, annoying posters I have ever encountered.
I realize you know this however there is no need to explain yourself to a petty b!tch like that poster…
Loudin, dear, please do all of us a favor and depart for the blessed land of wherever you think is so superior….
I’ll bet we could even take up a collection and buy you a bus ticket.
terryalan on January 27 at 9:25 p.m.
Oh, btw….many frames above was a reference to Copper River salmon price going up due to sales tax increase…
We don’t pay sales tax on food in this state..
johnclarke on January 28 at 2:57 p.m.
terryalan on January 27 at 9:24 p.m.
Ahhh JC..Loudin truly seems to be one of the most judgmental, annoying posters I have ever encountered.
I realize you know this however there is no need to explain yourself to a petty b!tch like that poster…
It makes me feel better. On another topic, the best runs of wild Salmon from the smaller rivers never seem to find their way to Spokaloo. I do like the copper river IQF product that COSTCO sells. They are mighty tasty on cedar planks with some olive oil and pinch of salt/pepper. Luckily, all of those things are sold at COSTCO.
FrankInSpokane on January 29 at 11:09 p.m.
“I can say with a fair amount of confidence that most American whiskey fans have not had the joy of entering a shop dedicated solely to the sale of a of a specific type of liquor. In the United States, liquor is often distributed and sold under strict government supervision, with many individual states still operating under laws put forth following the failure that was Prohibition. If my experiences with liquor stores bear any resemblance to most people’s in the United States, a liquor store comes across as only slightly more reputable than the local strip club.
“The last time I had entered a state-run store in Seattle, the place was dark and muted, even as several fluorescent lights strained to provide an adequate amount of lighting for the customers to read the labels on the bottles they were purchasing. Lottery tickets adorned the counters, and the shelves were lined with mostly cheap bottles of vodka, most flavored, some not. For every bottle of decent whiskey, there were three bottles of whiskey that were renowned for how inexpensive they were, and five bottles of vodka flavored with some sort of chemical additive. The deep green carpet was matted with age and had not been cleaned in several years. Marks in the linoleum floor had likely been there since the Reagan administration. Liquor stores in America are, for the most part, fairly sketchy places to congregate.”
~ Kate Hopkins, “99 Drams of Whiskey: The Accidental Hedonist’s Quest for the Perfect Shot” (p. 25)
==========================================
I grew up in Ohio, which, like Washington, was a “control” state. My folks bought beer and wine at private (i.e., free-market) retailers, but had to buy liquor from what they called the “state store.” My recollection of the place is that it was dull and lifeless and had the air of bureaucracy to it — not unlike the Motor Vehicle Division. Ms. Hopkins’ description above just about sums it up.
I wasn’t old enough to drink distilled spirits before joining the USAF in Jan. 1980, at age 18, but I WAS allowed to drink beer at jet school (in Illinois). In May, I reported to Bitburg, West Germany, where I was legal to drink anything I liked, whether on base or off.
In Nov 1982, I was transferred to Phoenix, AZ (a non-control state), by which time I’d pretty much set aside drinking due to religious conviction.
Years later — out of the AF and still living in Phoenix — my wife and I re-examined those convictions and concluded that they were erroneous, so we began once again to enjoy the occasional wine with dinner or beer with pizza.
About five years ago, a friend turned me on to single malt scotch whisky — probably the first liquor I’d had since W. Germany. The first bottle I purchased was at a Fry’s Marketplace (AZ’s Kroger affiliate) — a bottle of Balvenie 12 as a gift to that friend. I soon learned that, for a grocery store, Fry’s had a very nice selection of all kinds of liquors at all price points. Shortly thereafter, I discovered that Costco carried MAYBE a dozen liquors total, including the Balvenie.
Eventually, though, somebody told me about BevMo. All I can say is, “WOW!” As I said earlier, brightly-lit, spacious, a HUGE selection at very reasonable prices.
As we prepared in 2008 to make our move to Spokane, I learned that WA was a “control” state, and checked out WSLCB’s web site. Their prices were a real kick in the gut! So I began stocking up on various single malts to bring up with us.
I eventually acclimated to WSLCB’s prices. In fact, when WA recently increased liquor taxes, I resolved to do all my liquor shopping over in ID (also a control state, but several bucks cheaper per bottle). The only stuff I buy in Spokane is stuff I can’t readily find in ID. (Can you imagine, with the passage of 1183, all those Idahoans driving to Spokane? They will get a better selection of liquor at cheaper prices, and WA will actually gain tax revenue!) …
FrankInSpokane on January 29 at 11:10 p.m.
… So I said YES to 1183! Wrest liquor sales from the hands of do-gooder nanny-statists and inefficient, overpaid government bureaucrats, and put it out in the free marketplace where it belongs! Goodbye divey state-run liquor stores with their limited selection and insane markups, hello BevMo, Total Wine and the FREE MARKET. (Well, freer than the current system of highway robbery in shops where you feel like you need a shower after leaving.)