LIQUOR STORES NA LTD 4.70 PCT DEBS T.LIQ.DB.B

RE:RE:RE:RE:RE:sales during a recession

[Ticker28]

mercatos wrote:
"I feel strongly that we need one or two of these key transations per year and layering them with new store openings around the aquired established business leverages the talent and experience of these successful transations."

Hi Mercatos,

I wanted to ask for clarification as to a point you had mentioned when discussing what you would like to see for future growth projections.  When you mention the need to layer key aquisitions with new stores around the exisiting stores, do you mean the aquisitioned stores and would the leverage come from exisisting management or established branding?

The challenges I would see is possiblity of regulation limiting the amount of stores such as New Jersey state which needs to grow top line as they can not procure any further state liquor liscenses.  However many other states such as Alaska and Kentucky are fully privatized and allow a much larger allotment of lisences as per regulation.  We could employ this strategy in the 38 states that have privatized liquor distribution but need to be cautious of canabalizing same store sales due to proximity.