Small community retailers in limbo over liquor decision [Association of Community Retailers]

21 June 2010

Small community retailers in limbo over liquor decision

The Association of Community Retailers (ACR) is concerned that a High Court case into whether convenience stores should be licensed to sell alcohol could take years to resolve – putting retailers at yet another disadvantage.

Dipal Desai, the ACR spokesperson for alcohol issues, says the law needs to be clarified at the earliest possible outcome because licensing agencies are refusing to grant liquor permits to convenience stores until the current legal issue is resolved.

“Community retailers are being put under pressure with reviews of the Sale of Liquor Act and the Law Commission recommendations. But it is our view that this case before the High Court needs to be resolved quickly so that retailers are not in limbo over selling wine and beer,” she says.

The problem arises from a Liquor Licensing Authority (LLA) case involving the Victoria St “Night ‘N Day” store in Christchurch. The store was refused renewal of their licence on the grounds that the LLA believes the store is not trading as a grocery shop.

According to the LLA to qualify as a food or grocery retailer, sales of “food” must comprise at least 50 percent of the retailer’s annual sales turnover. Applicants for an off-licence as a food retailer must show they meet these requirements before they can be considered eligible to sell wine or beer.

Ms Desai, who owns a convenience store in Hinds, mid-Canterbury, said today that the retailing environment is a complex one, and that the current criterion that distinguishes a grocery store compared with a convenience store is not relevant.

“The retailing environment has changed hugely in the last 20 years and consumers buying habits have evolved where smaller, convenience stores play a greater role in consuming buying. We understand the law surrounding sale of liquor licences only to grocery stores, but small convenience shops, some in rural areas, are at a disadvantage,” she says.

With the expanded range of grocery goods at service stations and an increasing number of supermarkets, small, family-owned community shop owners are already under pressure. “It’s time the small retailer spoke up. Dairies and convenience stores are the lifeblood of many small communities and their owners are responsible citizens who want to service their local communities,” Ms Desai says.

ENDS

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