Ontario alcohol sales boost convenience stores, but rural shops struggle

It’s been one year since beer, wine, cider and ready-to-drink alcoholic beverages have been available in convenience stores across Ontario.

This plan introduced by Premier Doug Ford was intended to bring choice to consumers, but it’s not without its flaws.

Over 4,100 convenience stores across Ontario are licensed to sell alcoholic beverages. While it seems to benefit the convenience store industry, it’s a challenge in rural areas.

“It has really been a lifeline for our industry,” said Anne Kothawala, CEO and president of the Convenience Industry Council of Canada.

Previous to this announcement, the Convenience Industry Council of Canada were seeing a lot of store closures. But with alcohol on the shelves, overall sales have gone up 12 per cent.

“That added convenience of being able to go when other places are closed, like a holiday Monday, we saw a 33 per cent on average increase,” said Kothawala.

Kothawala says it’s a hard business that comes with lower margins and lower product volume.

She says it’s been especially challenging for rural stores to stay open due to the challenge in product distribution to smaller stores.

“They know that they are going to have a lot of traffic on a long weekend, for example, but they’re not able to sufficiently load enough product to meet that demand because they have nowhere to put it,” said Kothawala.

“There were no fridges, there was like a bunch of shelves,” said Steve Toma from The Market on James in Hamilton.

That’s what it was like before some alcohol was available in convenience stores. At The Market on James, they say sales are now better than last year by 90 per cent.

“Yeah, I gotta make a lot of space, especially remove all the shelves down here and then put new fridges for the beer,” said Toma.

Did all these changes affect consumer shopping habits? According to some consumers on Dundurn Street in Hamilton, yes and no.

“I just came from Fortinos, actually grabbed some beer there. It’s convenient, you can do groceries. I also have Hasty Market by my house because I’m in the north end of Hamilton. I don’t like drinking and driving, so if I need more beer I’ll just walk to the convenience store,” said one man.

“So usually I will go to the LCBO. Sometimes, if I’m at the grocery store, I have picked up a bottle of wine. I don’t ever go to a convenience store to pick it up. I just find it’s just as easy to come to the LCBO, and I don’t think they have as good a selection,” said one woman.

Of the people CHCH News spoke to, many said if they needed a quick purchase, they will stop by the convenience store for wine or beer. But if they wanted something specific, they will plan ahead and go to the LCBO.

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