New York’s Liquor Stores Face Closure Amid Changes

Authorities in New York are working on limiting the number of wine and liquor stores across the city. Reports indicate that various factors, including tariffs and increasing competition from marijuana, are impacting liquor sales.

A lawyer for a liquor retailer in the city shared that the state’s liquor department has turned down about 70% of license applications this year. The main concern seems to be that opening new stores could drive existing ones out of business.

This past summer, the Land Liquor Store in Bedford-Stuyvesant, Brooklyn, reopened and contested applications from rivals seeking to establish shops in a small 138-square-foot space. This store had been closed earlier in the year due to a dispute between its owners.

During a hearing on August 6 in Harlem, SLA Commissioner Lily Fan expressed her support for the idea of limiting new proposals due to significant changes in the area since the previous store’s closure. Attendees noted at the hearing that they doubted the neighborhood’s ability to support another shop.

Alcohol sales in New York have increased by as much as 25% this year. However, new tariffs on imported drinks are likely to worsen the situation, especially following a decline last year, as noted by Max Bookman, a lawyer specializing in liquor licenses.

Bookman expressed concerns that intense competition among liquor stores could lead to drastic price cuts, which might ultimately harm their business. Some retailers are even making difficult decisions themselves; over 100 liquor licenses were voluntarily surrendered to the SLA this year, leaving approximately 3,330 existing retail licenses statewide as of late August.

Robert Swetnick, another liquor license lawyer, mentioned that more stores are either shutting down or changing hands, indicating that the industry isn’t as profitable as it once was.

On a national scale, alcohol consumption has dropped, with 53% of Americans believing that moderate drinking is now unhealthy. Wine sales, in particular, are struggling, as younger demographics are leaning towards spirits, beer, and even cannabis.

This summer, wine businesses faced a challenging landscape, with a 15% tariff imposed on most European wines, forcing them to raise prices.

Daniel Posner, who runs a wine company in White Plains, highlighted the multiple issues facing the industry, including tariffs making it harder for businesses to thrive.

State regulations allow bars and restaurants to open close to each other, but new wine and liquor stores must serve “public convenience and benefits.” For example, the SLA recently rejected a bid from Kosher Corks to open a shop in Queens that would have competed with an established liquor store nearby.

In June, an application from 5th Ave. Wines & Liquors to relocate closer to competitors in Brooklyn was also denied. Commissioner Fan pointed out that sales last year decreased significantly compared to previous figures.

In fact, global demand for wine has hit its lowest mark since 1961, with U.S. wine sales dropping by 8.7% in the first half of the year, according to industry reports. Meanwhile, the demand for spirits and beer has also declined, albeit at a slower rate.

Recently, a prominent liquor store in Manhattan closed after decades in operation, partly due to unpaid bills. Owners attributed their struggles to the industry’s decline since the pandemic.

Many shops are now pivoting to focus on cheaper wines to maintain sales. For instance, a store in Manhattan’s Upper East Side recently held a sale on high-end wines that had been on the shelves for too long.

Despite the sale, profits remained slim. The owner explained that the revenue generated from these discounts is being used to procure more affordable items, especially popular brands.

Posner, known for his collection of French wines, has adjusted his inventory to increase the number of bottles priced below $25. He lamented, “The wine isn’t cool anymore,” questioning when it might regain its appeal.