Privatization of liquor sales would create opportunity for supermarkets

According to multiple reports, PA House Majority Leader Mike Turzai has introduced a bill that would result in the auctioning off of the state's 600 liquor stores and the sale of additional liquor licenses. A debate is raging among State House leaders over Turzai's bill (HB 11) and whether or not it makes financial sense.

According to Turzai, auctioning licenses could generate $2 billion for the state, which would auction 750 licenses to grocery stores and big box retailers, and leave 600 licenses for independent operators. Despite the license revenue, Turzai says his overall plan would be revenue neutral. With a privatized system, the state would not benefit from liquor sales, of course. Revenue would come in the form of license fees and gallonage taxes.

Pennsylvania and Utah are the only states that fully control alcohol sales, and more than half of U.S. states impose a gallonage tax on liquor and/or wine.

Not surprisingly, the union that represents liquor store employees opposes the plan, as it believes many union members would lose their jobs.

As for the affect on consumers, some legislators are saying Turzai's plan would result in higher prices. Turzai disagrees, and also thinks his plan would improve the customer experience in terms of selection and convenience.

In the end, it may be a moot point. Senate President Joe Scarnati, who pointed out that the state did not intend for the PLCB to be run like a business, would rather reform the current system than privatize it. Many of his colleagues seem to agree.

Six "traditional" supermarkets among Top 20 U.S. Retailers

The National Retail Federation released its annual Top 100 Retailers list, and Wal-Mart remains at the top by a comfortable margin (nearly four times the annual sales of the #2 retailer). As usual, traditional supermarkets made a strong showing, taking six of the top 20 spots.

It wasn't supermarkets, though, that caused much of the buzz generated by the list (published in the July issue of Stores Magazine and based on 2010 sales figures). Two retailers - Amazon.com and Apple Stores - made big jumps from last year's list. Amazon jumped from #26 to #19, as U.S. sales grew 46.2% to $18.5 billion. And Apple Stores climbed more than 30 spots to #21, as U.S. sales increased 32.3% to $18 billion.

Here is the top 10:

#1 - Wal-Mart
#2 - Kroger
#3 - Target
#4 - Walgreens
#5 - The Home Depot
#6 - Costco
#7 - CVS Caremark
#8 - Lowe's
#9 - Best Buy
#10 - Sears Holdings

Here are the supermarkets in the top 20 (and local brands in parenthesis):

#2 - Kroger
#11 - Safeway (Genuardi's)

#12 - Supervalu (Acme, Save-A-Lot)

#14 - Publix

#16 - Ahold USA (Giant)

#18 - Delhaize America (Bottom Dollar)

Also on the list:

#29 - ShopRite

#31 - BJ's Wholesale Club

#38 - Whole Foods

#42 - Aldi

#45 - A&P (Super Fresh, Pathmark)

#55 - Trader Joe's

#65 - Wegmans