Alcohol in convenience stores has been a ‘game-changer,’ Ontario association chair says

The introduction of alcohol in convenience stores has led to positive experiences for business owners “across the board” and may have even prevented shops from shutting down, the chair of the Ontario Convenience Stores Association says.

Terry Yaldo, who also is an independent convenience store owner in Windsor, told INsauga.com in an interview that the “long overdue” expansion has been “a positive step forward.”

“This is the way society is supposed to function, if you ask me,” Yaldo said.

“We shouldn’t have these monopolies and then you have stores like mine, or convenience stores across the province, that have to suffer. So it’s nice to see it open up.”

Thousands of convenience stores in Ontario were allowed to sell beer, wine, cider, and ready-to-drink beverages as of Sept. 5.

The move was part of the province’s wider alcohol sales expansion, with Sept. 5 marking one of the most significant dates in the timeline.

As of Oct. 31, all licensed grocery and big-box stores were also able to sell alcohol.

The changes have expanded Ontario’s alcohol market well beyond the two main stores where consumers were previously able to purchase booze: The Beer Store and the LCBO.

LCBOs, however, continue to be the only places where people can purchase spirits, other than at distillery retail stores and LCBO convenience outlets.

The LCBO also remains the exclusive wholesaler in the province, meaning the new retailers have to order their products through the Crown agency.

Still, the Ford government has said the changes mark, “The largest expansion of consumer choice and convenience in the province’s beverage alcohol marketplace since the end of prohibition almost 100 years ago.”

As of late last month, around 4,700 convenience stores as well as 850 grocery and big-box stores were licensed to sell alcohol.

“It’s helping with the foot traffic, which is important in our industry, especially with tobacco kind of being the way it is right now and declining over the years for multiple reasons,” Yaldo said.

“It’s nice to see a new category that is helping us with our bottom lines.”

And Yaldo said it’s also helping with sales of other products, turning convenience stores into “one-stop” shops.

“Picture yourself walking into a convenience store and grabbing some alcoholic beverages,” Yaldo said.

“There’s always good pairings of chips and pepperonis and chocolate bars … whatever you’re looking to indulge in that night.”

It could even lead to consumers buying other products, such as household supplies, he said.

“Like any business, once we get you in the door, obviously the potential of you buying something is a lot greater than if you didn’t walk in the store to begin with,” he said.

“So it definitely is helping with increased sales across the board.”

Some hiccups along the way

There have been some growing pains, however.

Yaldo said there have been some issues getting ready-to-drink beverages restocked due to problems with the distribution system.

But he said that’s understandable given the addition of thousands of new retailers in the market.

“There’s going to be issues and hiccups along the way and it’s going to take time for everything to smoothen out. But we’re excited to be able to go through this now instead of waiting another year or two years,” he said.

“By then, who knows how many stores could have possibly closed. So this has definitely been a game-changer in the industry.”

Yaldo said there will always be improvements that could be made on all sides and he’s confident issues with restocking products will work themselves out in the long run.

“In a year from now, if we have these issues, then we’ve got a problem. But being in the infancy stages of this program and this rollout, we can accept some of these hurdles,” he said.

Convenience store owners are also learning about the new marketplace — trying to determine what to order and what sells best in their area, Yaldo said.