Woolworths claims it could be prevented from opening any new bottle shops in WA

THE retail giant, behind the BWS and Dan Murphy’s stores, says it may have to stop opening new bottle shops due to onerous and “arbitrary” proposed laws.

BOOZE behemoth Woolworths has said it will have no choice but to stop opening any new liquor stores in Western Australia if controversial changes to alcohol laws come into force.

The company confirmed it had plans for 35 new stores in the pipeline for WA over the next decade representing $85m of investment and 600 jobs in the state, reported the West Australian.

But the retailer said all that was threatened by changes to liquor regulations that could shield existing bottle shops by refusing licences for new stores.

The company said the proposed amendment to state liquor laws was “arbitrary” and would “reduce choice and convenience for responsible consumers”.

Woolworths has claimed it could be prevented from opening new bottle shops in WA.

Woolworths, along with Coles, is one of the largest liquor sellers in Australia. Through its Endeavour Drinks subsidiary it runs both the BWS and Dan Murphy’s big box bottle shops.

The firm employs 1000 Western Australians across 21 Dan Murphy’s and 129 BWS existing stores.

But its hackles have been raised by proposed changes to the Liquor Control Act that could see new bottle shops banned if others were already trading in a given suburb.

A preamble to the bill states: “As a strategy to minimise the adverse impact that packaged liquor outlets can have on the community, the Bill [enables] the licensing authority to manage the number of packaged liquor outlets where sufficient outlets already exist within a locality.”

The plans could see liquor stores larger than 400 sqm barred from opening within 5km of a similar sized store.

But Woolworths has pointed out its smallest Dan Murphy’s outlet is 800sq m in size so the legislative changes would impact even relatively modest BWS stores.

The company says $85m of investment in 35 new BWS and Dan Murphy’s stores and 600 new jobs are at risk.

Shane Tremble, General Manager of Corporate Services at Endeavour Drinks, said it would be a mistake to rush the reform.

“We appreciate the Government has a genuine desire to reduce the harm caused by excessive alcohol consumption, but blocking new liquor licences based on arbitrary size and location restrictions won’t help achieve this.

“Instead, it will only serve to reduce choice and convenience for responsible consumers and block investment in new store developments set to create more than 600 local jobs.”

The company said it wasn’t threatening not to open new stores, rather it could be legally prevented from new openings in built up areas such as Perth where existing bottle shops were within 5km of one another.

Giuseppe Minissale, the President of the Australian Liquor Stores Association, backed Woolworths’ position. He told liquor news service The Shout that singling out the industry for competition protection made no sense.

“As an independent (liquor) retailer if I wanted to build a 500sq m store I would be restricted, but Bunnings can go and build a super-size warehouse store right next to a small hardware shop.

“Why is it good for one sector and not the other?”

However, Peter Peck of the Liquor Stores Association WA supported the reform and said it would prevent “oversupply” of liquor retailers.

“The legislation in its current form doesn’t stop a big box store from opening, it just says if there is enough supply in that market then we don’t need any more there.”

He told The Shout it would “ensure a future” for smaller bottle shops.

Racing, Gaming and Liquor Minister Paul Papalia said his support of the changes was unaffected by the push back from the Woolworths subsidiary.

“Our amendments in no way prevent Woolworths, or any other company, from applying for a packaged liquor outlet licence, under the prescribed conditions.”