After one month, Sunday sales at the Grand Marais municipal liquor store look good, Grand Marais Liquor Store Manager Chris LaVigne told Grand Marais city councilors at the council’s July 26 meeting.
As of July 2, 2017, Sunday liquor sales became legal in Minnesota.
On March 7, 2017, Minnesota Governor Mark Dayton signed a bipartisan bill which legalized sales of alcohol on Sundays.
By repealing Sunday off-sale liquor sales, the legislators lifted a law that has been on the books since Minnesota became a state.
Hours for Sunday sales will be limited to 11 a.m. to 6 p.m. LaVigne told councilors the Grand Marais operation was open from noon to 5 p.m.
After examining the four Sunday sales receipts, LaVigne said sales have been averaging from four to six thousand dollars, bringing in about 32 percent in profits.
“We’ll see what the fall brings and less busy times. But right now it’s well worth it,” he added.
The first Sunday, July 2, had the biggest sales so far, with $6,501.38 in receipts. The next two Sundays, (July 9) recorded $4,244.07, and July 16 sales were $4,824.86. “The first Sunday the sales were huge everywhere,” LaVigne said.
When asked about the hours, LaVigne said the liquor store is open from noon to 5 p.m. on Sundays. And, he added, he felt those were appropriate to meet the public demand.
One item that has been a problem is a lack of onsite storage for inventory, LaVigne said.
Buying in greater quantities would help in a variety of ways, he said. Not only would it help him in week-to-week ordering, but the city could also get better deals by buying in bulk. Those savings could then be passed to the public while the city could retain the same profit margin, LaVigne said.
“We need more space. More room that can be locked would be beneficial,” added LaVigne.
Councilor Tracy Benson said in light of the revenue that the liquor store generates for the city, in the future the city should look at finding a bigger, better space for the liquor store.
Mayor Jay Arrowsmith- DeCoux said he would explore options to find more space for liquor store inventory and discuss those with LaVigne.
The mayor asked LaVigne to come back in September to give council an update on Sunday alcohol sales. LaVigne said he would, but added the city needed to put a year in of Sunday alcohol sales and then go from there to see “how it shakes out.”
“If we sell it short, we won’t have a good model. We won’t be able to look at Saturday and Monday sales to see how Sunday sales impacted, if at all, for sales for those days.”
Benson said she felt Sunday liquor sales were a given and would be successful, even with a few weak Sunday sales days during the shoulder season.
LaVigne also asked the council to pay $1,500 for an ad for the liquor store that will run in the Grand Marais Lions Club flyer for the Fisherman’s Picnic. “That’s what we gave them last year. It helps the liquor store, but it really helps the Lions Club,” LaVigne said.
Council unanimously approved the payment to the Lions Club.
Last, Chris asked council if they had ever looked at the pay for other full-and part-time municipal liquor store employees. He said the Grand Marais municipal liquor store wasn’t like the Green Door in Silver Bay or the muni in Two Harbors. “This is a lot busier place. We run through a lot of people, a lot of money every year.”
Mayor Arrowsmith DeCoux said he would sit down with the personnel committee and gather information about what other places paid and bring that forward at a later meeting for discussion.
Councilor Dave Mills asked LaVigne if he could track sales from Cook County residents versus out of town residents and Canadian customers.
LaVigne said no, but added, “The one I really try to keep track of is the Canadian clients.”
Canadians have different names for products than U.S. customers, said LaVigne, so they are easy to spot.
Canadians could bring in as 35-40 percent of the liquor store’s business, he said.
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