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The Liquor Licensing Authority has turned down The Warehouse's application for a full off-licence selling beer, wine and spirits at one of its Auckland premises.
The Alcohol Advisory Council (Alac) welcomed the ruling against The Warehouse's Albany store.
"If the application had been successful, it would have set a precedent and other Warehouses and other large stores could follow suit, all seeking to sell the full range of products," said Alac chief executive Gerard Vaughan.
In its decision, the authority said it was a serious concern that The Warehouse had applied to have the entire premises licensed. That raised worries about liquor displayed all over the store, which was "quite untenable".
The company said it would have been conservative in its approach but the authority believed it could have changed its corporate mind.
The authority was also "far from satisfied" the sale of liquor was fitting, proper or a suitable complement to any of the goods already sold.
The authority said that in hindsight the company could consider itself lucky to have previously been granted the right to sell all kinds of alcohol in its "store within a store" concept.
North Shore police, the district licensing inspector and the Albany Community Board opposed the scheme, but there were no public submissions in opposition.
Mr Vaughan said opening up the market for spirits and RTDs could result in further discounting and increased alcohol-related harm.
"Studies show increases in alcohol prices lead to a reduction in a host of undesirable outcomes. On the other hand, cost cutting and heavy discounting leads to increased consumption and with it increased harm.
"We really don't think the public need any more of a bargain in alcohol than they already get from the cut prices in supermarkets."
The Warehouse was not immediately available for comment.
- NZPA