Costco: Threat or benefit to Knox liquor stores?

Costco: Threat or benefit to Knox liquor stores?

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"Simply put, that's like a convenience store on every corner lot and that's just too much competition," Jeff Seeman said. "Simply put, that's like a convenience store on every corner lot and that's just too much competition," Jeff Seeman said.
"More people coming from ten counties to shop at Costco and maybe they'll hear that down the street they have good pricing," David Purvis theorized. "More people coming from ten counties to shop at Costco and maybe they'll hear that down the street they have good pricing," David Purvis theorized.

FARRAGUT (WATE) - The owners of two Farragut liquor stores have differing views on how a Costco store being built nearby will affect their business.

The new Costco Store is set to open by the second week in November and will have an adjacent liquor store.

The chain is the fifth largest retailer in the U.S. and the largest retailer of wine in the world.

That has local liquor store owners pondering their future.

Jeff Seeman, co-owner of Frontier Liquor Store, says competition is already stiff in his line of work. He sees Costco and its adjacent liquor store as another step toward the real danger to his business, wine sales in grocery stores.

"Simply put, that's like a convenience store on every corner lot and that's just too much competition," Seeman said.

David Purvis at Farragut Wine and Spirits is taking a different perspective on the impact of Costco's entry into the market. He sees Costco as an opportunity to attract new customers to the area.

"More people coming from ten counties to shop at Costco and maybe they'll hear that down the street they have good pricing," Purvis theorized.

Whichever way it falls for existing businesses, Costco is expected to bring at least 150 jobs to Farragut, with the possibility of up to 300 jobs.

Costco officials say most of those jobs are full-time, with wages and benefits higher than most retail jobs.

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