MECHANICSVILLE — A plan to reduce the operating hours of 155 Virginia Alcoholic Beverage Control Authority stores was quietly rolled back within weeks of being implemented in late summer 2023 after ABC found the change had reduced sales, officials confirmed Wednesday.
On Aug. 30, 2023, the authority announced that beginning in September it would begin closing 155 stores two hours earlier than it had previously. ABC said the change “was driven by an analysis of store sales during the last two hours of the day.”
However, ABC spokesperson Pat Kane told the Mercury “reduced hours affect sales” and “therefore, Virginia ABC suspended the changes effective September 22, reverting to the prior business hours.”
A public notice was not issued regarding the change back to normal hours.
A presentation during an ABC Board meeting Wednesday revealed that September 2023 had the smallest store sales growth of any month in the fiscal year. That month, sales only grew 0.1%, compared to the fiscal year’s monthly average of 4.9%.
ABC spokesperson Jeff Caldwell told the Mercury the change back to normal operating hours was made to address “financial challenges” discussed by the board Wednesday, including the possibility that the authority will not meet its goal for the amount of profits it will transfer to the state this fiscal year.
Kane also said the drop was impacted by overall national trends and seasonal shifts. Data from the National Alcohol Beverage Control Association indicated total liquor sales in control states like Virginia decreased by 5.8% in September 2023.
A whistleblower lawsuit filed against the authority by former ABC Assistant Director of Retail Operations Thomas Aruanno alleges ABC officials relied on insufficient data to justify changing store hours despite warnings the early closures would “cost the organization millions and millions of dollars.”
Aruanno alleges in his lawsuit that ABC lost over $500,000 in nine days of reduced store hours.
ABC said it was unable to comment on litigation.
ABC stores now close at either 7 p.m. or 9 p.m. Monday through Saturday and 6 p.m. or 7 p.m. Sunday.
Virginia Mercury is part of States Newsroom, a network of news bureaus supported by grants and a coalition of donors as a 501c(3) public charity. Virginia Mercury maintains editorial independence. Contact Editor Sarah Vogelsong for questions: info@virginiamercury.com. Follow Virginia Mercury on Facebook and Twitter.
