The Uttar Pradesh excise department has relaxed the conditions for stocking alcoholic beverages in hypermarts and multi-retail shopping marts located within malls that have multiplexes. This policy change, announced on Thursday, aims to generate increased revenue in stagnating market conditions.
Background of the Policy Change
Although provisions to allow the sale of alcoholic beverages from shopping marts in malls were introduced in 2020, store owners showed little interest in obtaining a licence. The original policy required a dedicated space of 500 square feet within the mart to be earmarked for liquor bottles. However, due to the premium nature of retail space in malls with multiplexes, creating a separate enclosure solely for alcohol sales was not commercially viable.
“According to the original policy, a dedicated space of 500 square feet within the mart had to be earmarked to house liquor bottles. As the retail space within the shopping marts operating out of multiplexes is extremely premium, creating a separate enclosure just to sell alcoholic beverages was not commercially viable. So, nobody opted to open such a store,” said a manager of a mall near Gomti Nagar.
Key Changes in the Policy
The excise department has now removed the mandatory requirement for a dedicated space. Mall management and retail store owners are now free to decide how much space can be allocated for alcohol display. Excise commissioner Adarsh Singh stated, “It would be up to the mall management and store operators to make the final decision. We are hopeful several players would come forward to take the licence due to the changed scenario in the coming months.”
Furthermore, the department will allow the sale of beer, wine, and low alcoholic beverages from existing premium retail vends in shopping malls. Both strong and mild beer bottles and cans, along with various wines and low alcohol by volume beverages, can be sold from hypermarts within malls, as per a senior officer.
Eligibility and Fees
The policy applies to malls with a plinth area of at least 10,000 square feet. This could benefit retail store operators in cities like Lucknow, Kanpur, Agra, Prayagraj, Varanasi, Noida, and Ghaziabad. The licence fee for such hypermarts is only Rs 5 lakh, significantly lower than the Rs 25 lakh fee for a premium retail vend. “Opening such stores will be feasible now on,” added the officer.
Implications for the Market
This relaxation is expected to encourage more mall operators and retailers to apply for licences, potentially boosting excise revenue. The move addresses the earlier commercial viability concerns and aligns with the department's goal of adapting to market conditions.
