The Green Bay Press Gazette has an account of a vote by the Ashwaubenon, Wisconsin, village board turning down Kmart on its second attempt this year to win a liquor license. According to the report, "in a 4-2 vote, the board decided that the Kmart, at 1109 Lomardi Ave., was too close in proximity to other establishments with a similar Retail Class A Beer license...Currently, 14 establishments have a Retail Class A Beer license in Ashwaubenon."
Usually people think that competition is good for consumers, and they rely on the consumers and store-owners themselves to decide whether there are too many beer stores or not enough. Handing that decision over to the politicians benefits the existing stores and the politicians at the expense of would-be new entrants. If the government really thinks too many beer vendors are a problem, it could create a fixed number of beer licenses and auction off the right to them every five or ten years. That at least allows new entrants to come in and allocates the licenses to those who will make the most use of them rather than those who just happen to have been there longer, though it also has its own problems, as followers of the New York taxi medallion market can attest.
It's an interesting situation. You may think the local beer store is in the business of satisfying customers by providing them the best selection and service at the lowest price. But it may also be in the business of using its relations with the government to keep out competition.