MINNEAPOLIS (AP) _ A new analysis shows municipally operated liquor stores in
Minnesota saw a drop in profits in 2016 despite record sales.

The state Auditor's Office reports that the 228 stores had more than $344 million in sales last year, a more than 2 percent increase from 2015.

The reports that the combined net profit statewide dropped by more than 8 percent from 2015 to 2016 to just under $23 million.

The report found that profits have fallen over the past five years despite more than 20 years of increasing sales.

Municipal liquor stores have felt increasing competition in recent years. Total Wine has expanded in many Twin Cities suburbs and Target has also begun selling liquor in Minnesota stores.

The state also began Sunday liquor sales in July.