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Walmart prepares suit to sell liquor in Texas

It seeks to sell liquor at some of its 560 Texas locations.

By Ed Adamczyk

AUSTIN, Texas, April 27 (UPI) -- Walmart Corp., seeking to sell alcohol in its Texas stores, is taking the state to court, claiming its laws are unconstitutional.

The laws are convoluted and old, as well. Texas Alcoholic Beverage Commission regulations prevent public companies with more than 35 shareholders, such as Walmart, from selling alcohol. A company can own only five liquor stores, unless additional stores are purchased from blood relatives. Liquor and groceries cannot be sold at the same location.There are drive-through liquor stores, and a Houston neighborhood enforcing laws of prohibition.

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Walmart's contention in its court filing is that legal limitation on liquor sales is unconstitutional. It has also joined Kroger Co., Costco Wholesale Corp. and others in supporting legislation reforming Texas' sales laws. Walmart is attempting to build liquor stores as standalone locations adjacent to some of its 560 stores in Texas; liquor accounted for only 0.5 percent of Walmart's revenue in 2014, a figure the company is attempting to raise.

"Texas is the only state in the nation that allows private companies to own liquor stores while prohibiting public companies from doing so," said Travis Thomas, a of the Monument Group, a consulting firm hired by the retailers.

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The lawsuit notes Walmart currently sells wine or beer in 546 of its Texas stores, and has licenses to sell liquor in 25 other states.

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