By Katie Kerwin McCrimmon
Retailers aren't seeing anticipated revenue upside of state law that allows seven-day sales
Photo by Dennis Schroeder / The Rocky
Sam Naoum stocks his shelves at his liquor store in Lakewood on Monday. Naoum is planning to close on Sundays after the football season because he misses being with his family.
Sale of liquor on Sundays in Colorado has boosted convenience for customers, but retailers say they're not seeing the promised hike in revenues.
"We are spreading six days to seven days," Sam Naoum, owner of Spirit Wine and Liquor in Lakewood, said of his sales. "It's not worth it."
Once the football season ends, Naoum plans to close on Sundays. He wants to spend time with his wife and two children on weekends.
"I know I will lose sales, but I will win my family and my family time. That's more important to me," Naoum said.
Sunday sales haven't boosted revenues either at giant retailer Daveco Liquors in Thornton, which Guinness World Records bills as the "world's largest liquor store."
"Sundays just stole business from Saturday. That's all it's done," said Ted Sutton, manager of Daveco.
Sutton doesn't mind Saturdays being a bit calmer at their store, which stocks 9,000 wines and 900 beers. But he acknowledges that being open on Sundays costs the company more.
When lawmakers passed the Sunday liquor law this year, analysts with the Legislative Council estimated Sunday liquor sales would boost revenues by $4 million in the first year and $6 million the year after that.
So far, with only three months of data, revenues were down this September over September 2007. August revenues increased somewhat over the prior August, and July revenues jumped significantly over July of last year.
Consumption of alcohol is up overall in the first three months since the law went into effect on July 1, according to the Colorado Department of Revenue. But the increase has not been dramatic. As predicted, sales of 3.2 beer have declined, while consumption of full-strength beer is up.
The year-to-year numbers don't tell the whole story. The economic downturn is hitting many retailers hard. It's difficult to tell whether Sunday sales might have caused a bigger surge in sales had the market not crashed.
"There is no way to know from the tax figures alone if people are drinking more to drown their sorrows because the economy stinks or if there are more people able to buy liquor because of Sunday sales," said Mark Couch, spokesman for the state revenue department.
For small retailers, the outlook is grim.
Dust is gathering on expensive wines and beers as customers shift to cheaper alternatives. Champagne sales are stalled. Some businesses and individuals who, in the past, have put in large orders for holiday parties are cutting back or canceling celebrations altogether.
Naoum said it's hard to sort out whether the poor economy or Sunday sales are to blame for lackluster revenues.
"There's no way to figure it out," Naoum said. "I don't know if it's because of the economy or whether we're slow because Sundays are no good."
Originally from Syria, Naoum moved to Colorado from California 18 years ago. He liked the liquor business because he could have Sundays free.
"We have a lot to do on Sundays, hiking or four-wheeling or cycling. You name it. Now, we killed it all. I see that in my son. He's 11 and just asked me when we'll ever go camping again. I don't know," said Naoum, who lives in Littleton.
At aptly named Hi Hopes Liquor in Littleton, owner Alex Woods is more optimistic about Sunday sales. He, too, has found customers buying cheaper beer and wine because of the faltering economy. But he says without Sundays, his losses would have been bigger.
Woods also had to contend with a giant liquor store that opened nearby and sent his revenues plunging 23 percent throughout the spring and summer. He's finding his customers are coming back as they compare his prices to those of the mega-market. Over the past couple of months, he said his sales are down just 12 percent, an improvement over the spring and summer.
Woods acknowledges it's inconvenient to be open on Sundays, but customers like the freedom to buy wine and beer on their day off.
"It's a necessary evil, but I think it's necessary to be open," Woods said. "I know in my heart and soul that Sundays have helped my business."
Sen. Jennifer Veiga, D-Denver, who sponsored Senate Bill 82, said she thinks the legislation is working well.
"For me, the deciding factor certainly was convenience and not income to the state. While it's our process in the legislature to determine what fiscal impacts will occur, it's just an estimate," Veiga said.
She said it's far too early to tell whether revenues will meet expectations.
"We're in one of the worst recessions or depressions we've ever seen. I'm not sure you can compare this year to last year," Veiga said. "I don't put a whole lot of stock in the numbers at this point."
She said no retailers were forced to open their doors on Sundays.
"There's no requirement that they be open on Sunday or any other day," Veiga said.
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