The first One-Stop opened Dec. 3, 2003, at the Clemens Family Market at Center Square in Blue Bell. There are now seven such one-stop shops and another seven are either underway or in the process of lease negotiations, Bill Epstein, PLCB's communications manager, tells GSR.

Two just opened at Super Fresh supermarkets in Boothwyn and Huntingdon Valley. One will be located in a new McCaffrey's high-end specialty supermarket under construction in Yardley. Another is planned at foodsource by Clemens, Clemens Family Markets' new, larger, gourmet-oriented location in Glen Mills. Mark Clemens, director of community marketing for the 20-unit high-end grocery company based in Kulpsville, PA, tells GSR "even more are planned."

These are full-scale PLCB wine and spirits units, operated and staffed by the control board, and sales are rung up on PLCB cash registers. "We require at least 3,000 to 4,000 sf," Epstein says, acknowledging that few supermarkets are able to carve out space for these units. In establishing the first, "we lucked out," Clemens says, and Epstein agrees. A 5,000-sf space adjacent Clemens was vacant, so PLCB rented it, closed off separate access, and broke through the wall between it and the market.

"There's been a definite lift in sales," Clemens reports, "and customers love the convenience. It brings a nice increase in traffic flow. The skill level between the control board staff and ours is another plus," he adds. Clemens located its extensive cheese section next to the liquor section for cross merchandising.

"Cabernets go well with the stronger cheeses," says Bill Harter, manager of the Clemens PLCB unit. "We cooperate on wine tastings and cooking demonstrations that are good for our sales and for the market's." Epstein says PLCB's total sales for the first half of the current fiscal year are up 8.8% on top of a 7.4% increase the year before, which is the first year its new initiatives began being implemented. His supermarket landlords report increases of as much as 10% with the addition of One-Stops.

"We don't intend to stop at 14 units statewide," Epstein says. "Our real estate department is always looking for opportunities, especially when supermarket chains plan additional stores. We, and our supermarket-landlords see a good number of stores like this in our future."

The One-Stops have not resulted in the closing of any of the control board's existing 638 stores. "We're sensitive to cannibalizing," Epstein says. "The Clemens' One-Stop does $3 million in business, and sales at our nearest location have dropped just a bit. But, we're willing to sacrifice a 5%-drop there for the increased overall volume. Furthermore, we have a commitment to provide customer convenience."

PLCB outlet stores, specifically aimed at "border bleed," now number six, ranging up to 12,000 sf, located near border-crossing areas. In order to develop these without cannibalizing, PLCB negotiated with wine and liquor producers to obtain stock-keeping-units not available in regular state stores. For spirits, for example, it negotiated to obtain one-liter bottles of brands sold only in fifths at its other stores, for a discounted price. "Customers get a third-larger pour for just $1 more than the price of a fifth," he explains.

"On the wine side, we negotiated a blister pack of two Pinot Grigios that we sell for $10.88, well under the price for two single bottles," he offers as an example. "Technically, we're not selling the same product at the outlets.

"It takes time to get people to break habits, and crossing the bridge to New Jersey has become routine for many people," he concedes. "But, we've made a significant dent in border bleed. We're even seeing some New Jersey license plates outside our stores."

Premium wine areas containing a "Chairman's Selection" have been placed in 50 existing PLCB stores. "At one time, people did not see us as a source for good wine," Epstein acknowledges. "We sold maybe 15 cases a year, systemwide of a $39.99 California wine. We asked that supplier how much discount we could get if we ordered 1,000 cases. We placed an order and, within three months, sold all 1,000 cases at $19.99 a bottle. Since then we've negotiated prices for 100 different premium vintages and are selling $10 million in premium wines."

Sunday sales, once verboten in Pennsylvania state stores, are expanding to a selection of stores in all markets. While PLCB does sell over the Internet and deliver orders to the nearest state store, where customers can pick up orders, it does not allow home delivery, which is available to residents in many states where liquor stores are private enterprises.

"We're of mixed minds over home delivery," Epstein says. "It's not on the horizon. We have several responsibilities, which include protection of sales to minors. Among them, though, is to operate a modern, successful retail system for customers and taxpayers. In the past two years, we've made significant gains on that mission."