Costco Wholesale opened its doors in Little Rock, Arkansas, today, including its liquor store, following a Pulaski County Circuit judge’s refusal to close the package store. The opening comes amidst accusations that state alcohol regulators expedited the licensing process improperly. Early sales projections for the Chenal Parkway location anticipate $250,000 within the first few weeks.
Judge Denies Request for Preliminary Injunction
Judge Alice Gray dismissed a petition filed by United Beverage Retailers of Arkansas and its president, Johnny Akins, seeking closure of the Costco liquor store. Citing insufficient evidence, Judge Gray’s three-page order stated the court lacked the necessary information to justify a preliminary injunction or temporary restraining order. The judge also noted the plaintiffs failed to properly notify Costco and relevant state agencies about the legal action.
Ongoing Legal Challenges to Costco Liquor License in Little Rock
While the judge’s ruling allows Costco to operate its liquor store, the legal battle continues. United Beverage Retailers, a group of Arkansas liquor store owners, and Akins, who owns a liquor store across from the new Costco, are appealing the Arkansas Beverage Control Board’s June decision to grant Costco a liquor license. The board unanimously approved the license despite objections from the retailers group.
Costco Defends its Liquor License
Costco’s attorney, Mike Shannon, responded to the appeal, emphasizing the company’s legally issued and valid liquor license. Shannon argued that the Beverage Control Board already addressed and rejected the plaintiffs’ complaints regarding the licensing process during the June hearing. He highlighted the projected $250,000 in initial sales as evidence of the store’s viability.
Allegations of Unfair Practices and Violation of State Regulations
The appeal alleges that the Beverage Control Board violated state law by exceeding the allowable number of liquor retailers in Little Rock. The plaintiffs claim the city already has 56 licensed retailers, exceeding the legal limit by 30 for a city of Little Rock’s size, with 20 located within a 6-mile radius of the new Costco.
Furthermore, the petition contends that Costco gains an unfair advantage by selling merchandise prohibited in traditional liquor stores. It argues that Costco circumvents regulations by operating the liquor store adjacent to its main retail space, where beer and wine are also sold.
