Will Costco Affect Local Wine Store Sales

Now that it's official Costco is coming to Catoosa County, local businesses and customers are reacting.  Besides offering products in bulk, the store will also sell wine by the case.

We talked with the owners of three liquor stores in Brainerd, and they all said they weren't worried about losing business to Costco.  They hope loyalty and location will keep their customers in Tennessee.

Steve Gilbert is sure his wines will keep selling well, despite the news that Costco is moving in just minutes away.  He says the selection and service at Dodge City Liquors in Brainerd will win out with customers.  We have service, they won't, we have selection, they won't.  We probably 150 different chardoneys, 100 merlots, the grocery stores aren't going to have those."

But, they will have wines by the case, in Georgia, where they can buy food and alcohol in the same location.  In Tennessee, that's illegal.  "They're right next door to Tennessee, so they're not circumventing the law, but it's legal in georgia, and not in tennessee."

Gilbert says that's exactly why the warehouse membership store chose to land just over the state line, in Fort Oglethorpe.  "I don't think these people will drive 4 or 5 miles down there to do it."

Julian Johnson is one of those customers who says he's happy shopping nearby.  "It saves me time and effort as oppossed to going across the state line, but I just feel shopping at the local shops is very important."

And he says the option to buy wine there doesn't matter much.  "I won't really change my shopping habits much, but if they've got a really good sale on something that catches my eye, and if I have the membership, I'll go."

The other difference between the two states is that Georgia's sales tax is lower than Tennessee's, at 4 percent compared to 9.

As for Costco's timeline, Mayor Ronnie Cobb says construction will begin in May, and the store should open by late August or early September.