It’s unclear exactly what defines a low-margin store and repeated calls to the liquor commission to learn more about the legislation and which liquor stores might be closed, were not returned.
Scott Roden, Woodsville’s store manager, isn’t sure what low-margin is either, but his store increased its sales nine percent over last year while the state average was six percent. Only one store, located in Groveton, is losing money, Roden said, adding that he was not authorized to divulge his store’s revenue.
“I’m sure they won’t say anything until after the July 4th holiday,” Roden said. “We haven’t heard anything and we’ll probably find out what’s happening after reading it in the paper. Then, a couple of days later, we might get an email, or some sort of notice.”
During the budget process over the last several months, Gov. John Lynch called the state’s 77 liquor stores “one of our biggest assets” for generating revenue.
“This budget implements a plan by the liquor commission to close a number of underperforming stores, and to replace them with agency stores,” Lynch said in an address to legislators. “That would provide for better service for customers and increased returns for all taxpayers. … If we are to maximize this asset for our citizens, we need to let the liquor commission run like a business. We need to give the Commission greater authority to close underperforming stores and open new ones.”
Media reports have mentioned several stores as unprofitable, but none have included the Woodsville outlet which is located on Forest Street, sharing a parking lot with Shaw’s Supermarket. Some of the stores tagged by the media for closer scrutiny include Groveton, Whitefield, Berlin, Ashland, Conway and Glen in the northern parts of the state and several others the southern regions.
Roden, who has been an employee with the Woodsville liquor store for 35 years, acknowledges his store is “one of the smaller ones” in the state, but he believes the numbers still work.
“It’s going to be close,” Roden said. “We’re on the cusp.”
Roden said as the commissioners review which stores should be targeted for closure, he believes distances to other outlets might factor in the decision making process.
If the Woodsville store closed, liquor shoppers would have to truck up to Littleton or down to Lebanon to make their purchases, Roden said.
Additionally, more than 50% of the sales in the Woodville store come from Vermont. And, Roden said, many purchases are made by Canadians who either have made special trips or are traveling through the area.
The state of Vermont operates a liquor outlet located on Main Street in Bradford which serves customers in the area as well.
Roden said the commissioners could decide to let a private business operate a liquor store in the area, provided it was on the New Hampshire side of the Connecticut River. He said the New Hampshire Grocers Association has been lobbying hard for the right to permit grocery stories to sell liquor, and even the smaller convenience stores might be eligible to become an agency liquor store. Haverhill has convenience stores in Woodsville and in North Haverhill and two larger stores selling groceries in Woodsville.
Rick Ladd, a Republican state representative from Haverhill and chair of the Haverhill Selectboard, said he has not heard which stores will close, but said the state must give 30-days notice before closing any. If the state decides to close the Woodsville store, it will most likely be done by formula, Ladd said. That means it’s unlikely the local residents, and even state representatives, will be able to influence the decision, he said.
Ladd added that the provision that gives the liquor commission permission to license private agencies also states that surrounding communities and the host community must approve of the change in the sale of liquor. Towns must hold public votes to allow private agency stores in their communities, Ladd said.
“At that point, I would act as a selectmen and I would pursue getting the feedback from the community,” Ladd said. “If the store is not meeting the standard for profitability, and I don’t know if they are, there’s little we can do.”
Ladd said if the state proposed a private agency store for anywhere in Haverhill, he would work on holding public hearings to inform the residents and get comment from not only Haverhill residents, but, those in Bath, Lisbon, Piermont and Warren, all which will be affected by the state’s decision.
The state is “not very good at making money” so privatizing some of the liquor stores has advantages, but it also has minuses, in that private business may not regulate and control sales as tightly as state employees.
“So, that’s where Rick Ladd is,” Ladd said.
Roden said prices in a private agency store will most likely be higher than those found in state-operated outlets because of the need for a third party to make a profit. Volume, therefore will like likely drop, he said, and the revenue for the state might drop as well. New Hampshire has a reputation for selling liquor cheaper than vendors in other states, Roden said.
The Woodsville store has two full-time and two part-employees, according to Roden. He explained Woodsville has had a liquor store in the community since about 1935 when it became the 16th store in the state to open. It was once located in a Central Street storefront across from the now-defunct Riverview Market and later further east on Central Street in the building that now houses the book store, according to Roden.
“It will be interesting to see what happens,” Roden said.
###