I'm looking for some general advice here, nothing too specific.  Am an
old school retailer looking to add a business and looking for some NY
specific advice on how the industry works in the state and what I can
expect to look forward to.  I am considering the purchase of a liquor
and wine shop in Putnam County, NY or Westchester County, NY.  My
partner and I have evaluated a number of stores for sale and have come
down to 2 to choose from.  I'd like some backround information on how
the business works.

Is licenseing easy to change from the seller to me or must I apply for
a new license?  How does the wholesale process work?  I believe the
state controls pricing and forces me to use specific distributors, as
well as closly monitoring inventory and sales.  Some owners tell me
the industry is dying in NY, yet others tell me they are doing better
than ever.  What is the general consensus on the viability of this
business?  Does NYS plan on allowing supermarkets or other large
enterprises to sell wine or spirits in the near future?  Is there a
real benefit to buying an existing liquor store as opposed to opening
a new store? What is the best way to value inventory?  Should I simply
match the inventory list with the wholesale price list?

Lots of questions I know, but really I am most interested in how the
business operates on a day to day basis.  A retired liquor store
owners musings would be acceptable enough.

Any help here?  http://www.abc.state.ny.us/

Unfortunatly not.  The NYS websites are mainly devoid of how the
industry operates.  I need to know what distributors to contact and
someone to help guide me through the process of ordering wine and
liquor through to sales as well as providing neccessary info to the
government.

Being from the UK, I'm quite surprized by some of the things in your question.
It sounds like Prohibition lingers in NY.

For practical reasons I am rather interested in how what we call 'off
licences' work. I've also pondered getting involved in the industry.

From observation, the most important factor appears to be location,
also if anything there is quite a lot to be said for keeping the size
of the store small, it reduces the theft factor
- and the stock should be turning over extremely fast.

Pile it high is not that important, there is a limit to what people
can (and want to) carry.  The trick is pulling stock forward from the
back room.

Unless you have a really good hunch, then I would recommend buying an
existing store - preferably one near a large captive market, or even
better one where commuters have to pass (on foot) - ideally both.

Stock valuation is fairly easy, you'll find that there is a reasonable
proportion of 'dead stock', the real sellers appear to turn over in
about 7 days, but it makes sense to carry slower moving lines, partly
as window dressing and partly because regular customers sometimes
splash out.

In the UK the supermarkets all sell booze, small general stores also
sell it, and you get places that sell it by the case only.  However,
all the clients are different - someone who buys 12 bottles is
unlikely to go to a small liquor store - their clients tend to buy for
that evenings consumption.

I've seen up-market places wither and die, similarly places that try
to sell by the case when they are really getting walk in trade.

Another thing that seems to be very important is the staff, given a
choice customers prefer going somewhere where they know and like the
staff, they can easily be cross-sold if something is out of stock.

It is a curious business - in my view rather similar to running a bar,
and best run on those principles.

I'll be interested to see what else turns up here.

You might consider asking the present owner to stay on as a consultant
for three or six months after you purchase the store.  This would have
several advantages:
you would learn about suppliers and sales patterns;  assure continuity
in service, which customers like; avoid silly mistakes that drive off
customers.  Probably much else.

This could also appeal to an owner who is retiring and would like to
see "his" store continue to be successful, and also maybe would like
to taper off rather than jump immediately into to full retirement.

If this were possible, I would suggest a contract with him  - rather
than just an informal, oral agreement.  This would assure his active
participation.
Sure, it would cost something, but without his help, your sales would
probably drop off in the start up phase while you make mistakes
learning the trade and your customers' wishes.

It often occurs that a new owner  - especially one not familiar with
the branch of business -  starts with wonderful personal ideas of how
to do things better.  These may be valid  - somewhere -   but if they
are not attuned to what the regular customers want and expect, they
can backfire.

Good luck.

A very good point - continuity is important.

It might also be an idea to physically work there yourself /prior/ to purchase.

The problem with businesses is that they are normally only sold for
one of the three D's - Death, Divorce and Disease  (disease of
business or vendor)

People seldom give up a good money making machine without a very good
reason, one is that they are being paid substantially more than they
think it is worth, another is that they have no alternative.