Essential Liquor Store Businesses Toast Skyrocketing Pandemic Sales
Liquor Stores have always been a “bread & butter” type of small business opportunity. They are widely desirable, relatively easy to operate and profitable. While small business sales lapsed during the pandemic, state classifications of liquor stores as “essential business” have now made liquor stores for sale sustainable gold mines and sure bets for safe small business acquisitions and investments.
First, most states classified liquor stores as ‘essential businesses’ during the pandemic. Then liquor stores saw their sales skyrocket as we were cooped up at home riding out the virus. Within the first week of the stay at home orders, liquor sales skyrocketed 55%. As the weeks wore on, sales continued to remain strong up 25%.
Liquor stores were deemed essential because of all the social businesses that were ordered shuttered. For many, some cocktails helped them cope during the anxiety and uncertainty of the pandemic. Yet, part of the state’s reasons for deeming liquor stores ‘essential’ was to also ward of alcohol-related medical issues that could have diverted medical attention and resources away from the corona-virus if all of a sudden thousands of Americans went into withdrawal.
Despite social distancing, the party did not stop. Online video-conferencing created virtual happy hours trends. Small businesses, like liquor stores, convenience stores, mini-markets and restaurants, were able to fill the gap by offering delivery services. In so doing, business boomed.
Huge sales did not come without its own headaches. As demand exploded, liquor store owners had to protect their employees and reduce risk. Many took safety measures such as installing sneeze guard barriers and limiting how many customers can enter stores at a time.
What does all this mean for California liquor stores for sale?
What this means for liquor stores that are for sale or will be for sale is that they will become more desirable. Being deemed essential during challenging periods makes it a solid investment. Seeing liquor stores flourish while many small businesses saw revenue drop or vanish will likely be reflected in business valuation multiples.
While this pandemic sales spike is likely to be temporary for a few months during 2020 — 2021, the essential business characterization along with the strong economic performance will make this investment more appealing to small business buyers. For liquor store owners, the time has never been better for selling a liquor store.
How Mission Peak Brokers can help you buy or sell a liquor store.
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