Some liquor storeowners in Plano are concerned that a Wal-Mart Stores, Inc. lawsuit against the Texas Alcoholic Beverage Commission, or TABC, could cause them to close their doors for good if the retailer is granted the right to sell distilled spirits.
Wal-Mart filed the lawsuit against the TABC in February, claiming state law prohibiting publicly traded companies from obtaining a permit to sell liquor is unfair and unconstitutional.
"One class of retailers ... are denied an opportunity to compete in the distilled spirits market, while another class of retailers ... are allowed to compete without similar restriction," the lawsuit states. "No other state in the nation allows private corporations to engage in the retail sale of spirits but prohibits some but not all publicly traded companies from doing so."
With more than 500 stores in Texas, Wal-Mart is the largest retailer of wine and beer in the state as well as its largest private employer, according to the lawsuit. The company is licensed to sell distilled spirits, beer and wine in 25 states, including California, Arkansas and Nevada.
Overall, the ban "negatively impacts Texas consumers, who are forced to pay noncompetitive prices because fair competition is prevented," the lawsuit states. The TABC declined to comment citing the pending litigation.
Plano received its first taste of the liquor market in May 2013, when residents voted to allow liquor stores to operate inside the city limits. Since then, there has been a steady stream of new liquor stores in Plano, some opening shortly after the election and others that expanded their inventory from beer and wine.
Chuck Wong, owner of S&K Beverage, opened his family-operated business two months after the city ordinance was passed and receives 65 percent of his revenue from liquor sales.
But even the most successful business could suffer if Wal-Mart emerges as a competitor due to its prices and extended store hours, Wong said.
"It would kill us. It would put a lot of small stores like us out of business, there's no question about it," Wong said. "You're not going to make it. It's all about volume and we're not doing the volume [compared to Wal-Mart]. We can't survive [selling] just beer and wine."
Serving Plano for more than 10 years, Kegs & Barrels built its business off wine and beer. Located off 15th Street, the store started incorporating liquor sales after the ordinance passed. Liquor sales boosted revenue in the beginning, but today it makes up for 20 percent of sales, said Bob Bodar, manager of Kegs & Barrels.
"If there's liquor sold [at Wal-Mart], [people are] not going to come to us. You can just get your liquor there too. It's one stop," Bodar said. "It doesn't matter if Wal-Mart is close to [us] or not, it's still going to affect [us]."
Although Bodar said he has regular customers, he suspects even the most supportive ones would take their business to Wal-Mart. It is something he said he faced when larger stores such as Total Wine & More and Spec's arrived.
"That business is going to come from all the [businesses], Bodar said. "They're going to take 10 percent from us and 10 percent from some other store. When [a customer] is at Wal-Mart, he is going to get liquor there. He doesn't want to make two stops, and Wal-Mart is cheaper on everything."
Some liquor storeowners in Plano are concerned that a Wal-Mart Stores, Inc. lawsuit against the Texas Alcoholic Beverage Commission, or TABC, could cause them to close their doors for good if the retailer is granted the right to sell distilled spirits.
Wal-Mart filed the lawsuit against the TABC in February, claiming state law prohibiting publicly traded companies from obtaining a permit to sell liquor is unfair and unconstitutional.
"One class of retailers ... are denied an opportunity to compete in the distilled spirits market, while another class of retailers ... are allowed to compete without similar restriction," the lawsuit states. "No other state in the nation allows private corporations to engage in the retail sale of spirits but prohibits some but not all publicly traded companies from doing so."
With more than 500 stores in Texas, Wal-Mart is the largest retailer of wine and beer in the state as well as its largest private employer, according to the lawsuit. The company is licensed to sell distilled spirits, beer and wine in 25 states, including California, Arkansas and Nevada.
Overall, the ban "negatively impacts Texas consumers, who are forced to pay noncompetitive prices because fair competition is prevented," the lawsuit states. The TABC declined to comment citing the pending litigation.
Plano received its first taste of the liquor market in May 2013, when residents voted to allow liquor stores to operate inside the city limits. Since then, there has been a steady stream of new liquor stores in Plano, some opening shortly after the election and others that expanded their inventory from beer and wine.
Chuck Wong, owner of S&K Beverage, opened his family-operated business two months after the city ordinance was passed and receives 65 percent of his revenue from liquor sales.
But even the most successful business could suffer if Wal-Mart emerges as a competitor due to its prices and extended store hours, Wong said.
"It would kill us. It would put a lot of small stores like us out of business, there's no question about it," Wong said. "You're not going to make it. It's all about volume and we're not doing the volume [compared to Wal-Mart]. We can't survive [selling] just beer and wine."
Serving Plano for more than 10 years, Kegs & Barrels built its business off wine and beer. Located off 15th Street, the store started incorporating liquor sales after the ordinance passed. Liquor sales boosted revenue in the beginning, but today it makes up for 20 percent of sales, said Bob Bodar, manager of Kegs & Barrels.
"If there's liquor sold [at Wal-Mart], [people are] not going to come to us. You can just get your liquor there too. It's one stop," Bodar said. "It doesn't matter if Wal-Mart is close to [us] or not, it's still going to affect [us]."
Although Bodar said he has regular customers, he suspects even the most supportive ones would take their business to Wal-Mart. It is something he said he faced when larger stores such as Total Wine & More and Spec's arrived.
"That business is going to come from all the [businesses], Bodar said. "They're going to take 10 percent from us and 10 percent from some other store. When [a customer] is at Wal-Mart, he is going to get liquor there. He doesn't want to make two stops, and Wal-Mart is cheaper on everything."
