Bruce Winder, a retail analyst, discusses the launch in Ontario on Thursday September 5 in convenience stores.
Sales of alcohol will be launched in Ontario grocery stores on October 31 this year.
Winder says the move will be a disruptor offering consumers convenience but with a limited assortment.
The question is going to be what the price of alcohol will be.
For grocery stores, the margins for alcohol are not high and as of January bigger grocery stores will have to add a return element to their locations.
Winder says the consumer response is mixed right now as other provinces like Quebec have been doing it for a long time. Some negative responses include what it means for residential neighbourhoods as well as social concerns over drinking.
The following is a statement from Anne Kothawala, President and CEO of the Convenience Industry Council of Canada, on the launch of beverage alcohol sales in convenience stores:
“Today is a milestone for consumers and convenience stores in the province of Ontario. It marks the end of antiquated, prohibition-era rules that have precluded the province’s 7,500 convenience stores from responsibly retailing beverage alcohol.
“Allowing beer, wine, and coolers to be sold in our stores will create new revenue streams for our local businesses and meet customer demands in an increasingly competitive marketplace. It will also give thousands of Ontario retailers and producers opportunities to secure and grow their businesses. According to economic research prepared for CICC by Cascadia Partners, expansion will result in an additional 9,300 new jobs in the province. It is a true win-win-win: for convenience stores, for local producers, and for consumers.
“We commend Premier Doug Ford and Minister Peter Bethlenfalvy for working with CICC closely and delivering on their commitment to increase both convenience and choice to Ontarians.
“Today is just the start. There are still issues that need to be addressed to ensure the retail framework works for everyone. As the voice of convenience stores in Ontario, we will continue to work with the government to provide our industry expertise moving forward to address our concerns around pricing and distribution.”
The Convenience Industry Council of Canada (CICC) is the voice of Ontario’s convenience industry and represents 7,500 retailers in Ontario that generate $16.8 billion in annual sales, employ 65,700 Ontarians and collect $4.3 billion annually in taxes for the provincial government.
