Lakeway Liquor and Wine

             Greater variety and lower prices allow Lakeway Liquor and Wine to compete with grocery stores, according to Steve Ives, store manager of 13 years. 

Lakeway Liquor and Wine’s sales have decreased by 70 percent since Initiative 1183 was enacted on June 1, 2012, allowing the sale of liquor in privately owned businesses and closing down all state-run liquor stores.  The sudden competition from neighboring groceries, such as The Market and Fred Meyer, made the transition from state to private ownership difficult for Lakeway Liquor and Wine.  To stay competitive, Lakeway Liquor and Wine offers a greater selection at a lower price. 

“Because a lot of grocery stores don’t buy in bulk, they don’t get the case discounts,” Ives stated, explaining that these case discounts allow him to sell items for a cheaper price.  A fifth of liquor at Lakeway Liquor and Wine would typically be two to three dollars less than grocery prices, unless the specific item is on discount at the grocery.

A trip to Lakeway Liquor and Wine revealed a greater assortment of liquor than either of its local rivals, The Market or Fred Meyer.  Four cases (each approximately 3 feet wide) stacked five shelves high are dedicated to tequila alone, sporting a range of various brands not available in the competing groceries.  Vodka, scotch, rum, whiskey, gin, and various liqueurs all receive similar treatment.   

“We’re starting to buy local, too,” Ives said, showing off a bottle of Mount Baker Moonshine, “Distilled not three miles away.”

 Liquor stores statewide that are undergoing the same transition are facing similar challenges as many of their previous customers now shop at the local grocery for liquor.

“We’re 70 percent down from what the state had,” said Ives.  “A lot of previous state stores have shut down because they can’t make it.”

  Of the 328 previously state-owned liquor stores, only 166 are on the Washington State Liquor Control Board transition list from state to private ownership.

   Conversely, sales have increased at The Market at Lakeway and Lakeway Fred Meyer since Initiative 1183 was enacted, according to Sue Cole and Bill Pelan.

 “It’s definitely about convenience,” said Pelan, store director of Lakeway Fred Meyer.

  Sue Cole, public affairs director at The Market, agreed with Pelan.

“Our customers are very pleased,” Cole said.  “It’s the convenience factor – instead of making two stops, now they only make one.” 

Excluding the losses that came with Initiative 1183, privately owned Lakeway Liquor and Wine hasn’t experienced much change since it was state-run. Ives describes the owner, Dave Pannu, as very hands-off, giving Ives the reigns of the store.  The manager has taken advantage of this by beginning to set up new displays – one for the Halloween season, the other to showcase new and local products.  He also now brings his friendly Akita Husky/Labrador, Boesephus Jr., into work with him every day.  

Despite these selling points, Lakeway Liquor and Wine are struggling to break even, due to both the remodeling of the Lakeway Center in 2011 and Initiative 1183. 

The Lakeway Center remodeling consisted primarily of new fronts for all buildings and a resurfaced parking lot.  During the spring of 2011, Lakeway Liquor and Wine was forced to close temporarily due to construction.  

“We lost a lot of customers [during the remodeling],” said Ives.  “People found other places to shop.”  

Bars and restaurants make up the greatest percentage of sales lost for Lakeway Liquor and Wine.  Ives estimates that about 40 percent of his store’s decreases in sales come from the loss of bars and restaurants, which now are able to buy directly from the distributers due to I-1183.  

However, recent advertising has helped Lakeway Liquor and Wine increase its sales.  

“Some people didn’t realize we were back in business [after the remodeling],” Ives said. 

While the advertising brings in both old and new customers, a fair amount of Lakeway Liquor and Wine’s business comes from local residents in and around the Puget neighborhood. 

 “I get the daily regulars,” Ives recalls customers back from state-run days.  

According to Ives, Western students make up a fair amount of Lakeway Liquor and Wine’s customers due to its lower prices and larger range of drinks.  The matches at Civic Stadium across the street don’t hurt the store’s sales, either. 

“We have these new pocket shots in mini bladder pouches,” the manager joked.  “Easy to conceal.”   

 While the Lakeway Fred Meyer’s sales have increased since I-1183, the store has not changed significantly, said Pelan.

 “We’ve sold beer and wine for a long time,” Pelan stated.  “This really doesn’t change much.”

 Though sales have also increased for The Market at Lakeway, Cole stated that the store itself is no different than it was. 

“Any retailer is always happy to have a new category of item to sell,” Cole said.  “With any business, it’s a question of how competitive you can be.”

There will be a pumpkin carving contest on Friday, Oct. 26, outside Lakeway Liquor and Wine.  Ives hopes the contest will increase publicity and help reinvigorate his store’s sales.