Costco Wholesale officially opened its doors in Little Rock today, complete with its controversial liquor store, after a judge denied a request to halt the package store’s operations. The opening follows a legal challenge questioning the legality of the liquor license granted to the new Costco location on Chenal Parkway.
Pulaski County Circuit Judge Alice Gray issued a three-page order on Monday, rejecting a petition filed by United Beverage Retailers of Arkansas and President Johnny Akins. The petition sought an emergency injunction to prevent the Costco liquor store from opening, alleging that state alcohol regulators improperly granted the license. Judge Gray stated that the petition lacked sufficient evidence and proper notification to Costco and relevant state agencies to warrant immediate action.
The legal challenge stems from an appeal by United Retailers, a consortium of liquor store owners across Arkansas, and Johnny Akins, who owns a competing package store near the new Costco. They are contesting the Arkansas Beverage Control Board’s decision in June to approve Costco’s liquor license, despite their objections. The current court ruling is procedural and does not resolve the underlying appeal against the license itself.
Costco’s attorney, Mike Shannon, responded to the appeal in a letter, noting that Costco had not yet received formal notification of the legal action. He emphasized that “the warehouse seller has a lawfully issued, valid license to sell liquor at its Costco liquor store.” Shannon pointed out that the Arkansas Beverage Control Board had already considered and rejected the retailers group’s arguments before approving the license.
According to the legal petition, United Retailers argues that the Beverage Control Board violated state law by approving the Costco license. Their central claim is that Little Rock already exceeds the legal limit for the number of liquor stores based on its population. The petition states that Little Rock has 56 licensed retailers, exceeding the legal limit by 30, with 20 of those stores located within a six-mile radius of the new Costco.
The petition further argues that Costco gains an unfair competitive advantage by operating a liquor store adjacent to its main retail warehouse. This setup, they contend, allows Costco to circumvent state regulations that prevent traditional package stores from selling non-liquor merchandise. Costco’s setup allows it to attract customers already shopping for a wide range of goods, including beer and wine within the main warehouse, before they even enter the separate liquor store.
Despite the ongoing legal dispute, Costco representatives are optimistic about the new Little Rock location. They anticipate strong sales, projecting $250,000 in revenue within the first few weeks of operation, demonstrating confidence in the appeal of the new Costco and its liquor store to Little Rock consumers. The legal battle, however, signals potential continued scrutiny and debate over alcohol retail regulations in Arkansas as Costco begins its operations in the city.
