MAGRUDER RECASTS UNIT AS LIQUOR STORE

RICHARD TURCSIK

CHEVY CHASE, Md. -- Magruder Inc. has recycled an old, outdated supermarket here into a liquor store, doubling the unit's liquor sales in the process.

The building in this Washington suburb had housed a 6,000-square-foot supermarket, with an 18-foot by 100-foot liquor store in an adjacent building.

As part of the remodeling, the liquor store was moved into the former supermarket in November. The former liquor store, in turn, was converted to a farmer's market and deli, which opened late last month.

"Consumer reaction to the store has been incredible," Mark Polsky, senior vice president of the 12-unit Rockville, Md.-based chain, told SN. "During the holiday we doubled our liquor business.

"Our liquor store tripled in size and the display space is unbelievable. During Christmas all of the distributors built beautiful displays. We put in displays of gift packages for the holidays, and every wholesaler said that we sold more gift packages in our store than in the entire city," he said.

"The building was way too small to be a supermarket, but it is just perfect for what we are doing now," he said. He said he was able to increase the number of liquor, wine and beer stockkeeping units he carries by 30%, and add amenities like produce, fresh flowers, cheese and rotisserie chicken through the attached deli.

The store advertises liquor on Mondays, Polsky added.

"We have put in everything you wanted in a liquor store and more. It is well-lit and carpeted. We gutted the entire inside, and had interior designers come in to design the sales area," Polsky said.

He said it is still too soon to gauge the long-term viability of the unit. The store competes against several traditional liquor stores in its neighborhood, but not supermarkets like Giant Food and Safeway because liquor licenses are closely held and very limited, he said.

Magruder decided to make the conversion because the 6,000-square-foot building had outlived its usefulness as a supermarket.

"We couldn't accommodate the customer in 6,000 feet. All they wanted to do was to come in and buy the sale items and so it would have put us out of business," Polsky said. He added that the store was Magruder's oldest supermarket, being owned by the chain since 1967, and was a supermarket for generations.

"When we were remodeling the building we took the front doors out and there was an old plate in the ground showing it was originally a Sanitary store, which predates Safeway. That's how far back the building goes," he said.