12-09-1985 Council Packet - Laserfiche WebLink

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future have been somewhat decreased. - �,conomically, the ongoing variations we've seen in the past few years are expected to repeat the short upswings and downswings through the balance of the 80's and into the 90's. 2. Interna;l - - Competition - It is expected that the market mix in the Navarre store which currently is about 1/3 in eac-i of beer, wine and liquor will be altered based on what will happen with wine and beer in the grocery stores. Orono's store has however attempted to emphasize boutique premimum wines over the lest few years which has perhaps countered other trends in the market. As reflected in an increase in percentage of wine sales. These "boutique wines" are also items that will probably not be carried in the(- ,ery stores, should they get into the business. D. PRODUCTION CHANGES 1. _External -iA: is mentioned previously it's anticipated that the retailing of the various products currently marketed by the Orono Liquor Store could change markedly over the next years. It is expected that the number of convenience stores in the area will decrease as price competition of existing stares and or introduction in they grocery stores of other alcoholic products wi 1 1 force some of those out of business. The competition from the grocery is particularly of concern in that they generally operate on much lower margins for their products than has been traditional in the liquor store business. 2. Inte_rnal -In line with what is mentioned externally, it is expected that we will redefine the tasks and reduce hours of full-time personnel, making a consorted effort to at ract and retain part-time personnel as needed, in order to limit production expenses involved in marketing the product and keep our margins down. Primary expenditure increases have been in per3onne1 and insurance. Our personnel service costs on percentage basis of gross sales ar-t excessive and will need to be reduced to be profitable. IV. MAJOR OBJECTIVES FOR 1986-1991 4