Alberta Decides Against Expanding Liquor Sales to Grocery and Convenience Stores, Citing Harm to Small Businesses

Commonwealth_ The Alberta government has decided not to expand liquor sales to grocery and convenience stores following a review that concluded such a move would “significantly harm” small businesses in the province. The decision, announced on Wednesday, comes after a panel of government Members of the Legislative Assembly (MLAs) evaluated earlier this year the possibility of expanding alcohol sales beyond the existing network of 1,600 privately owned liquor stores.

Lesser Slave Lake MLA Scott Sinclair, a review committee member, explained that the proposed expansion would have a severe impact on small businesses, ultimately leading to “widespread closures, job losses, and diminished selection for consumers.” The decision was made after consultations with various stakeholders, including the provincial regulator Alberta Gaming, Liquor and Cannabis (AGLC), liquor retailers, grocery and convenience store operators, warehouses, and responsible-use advocacy groups like Mothers Against Drunk Driving (MADD), and the Canadian Mental Health Association.

The panel, including MLAs Andrew Boitchenko, Brandon Lunty, and Chelsae Petrovic, sought to determine the feasibility and impact of extending liquor sales. Their findings highlighted the potential risks to smaller liquor stores, many of which rely heavily on their local customer base and would face intense competition from larger grocery and convenience stores if the policy were to change. For these smaller stores, increased competition could mean not only reduced sales but also potential closure due to their inability to compete with the scale and buying power of larger retail chains.

The Alberta government’s decision to maintain the current system stands in contrast to the approach taken by other provinces. The Liquor Control Board of Ontario, for example, recently allowed grocery and convenience stores to sell alcoholic beverages, marking a significant shift for that province. In Alberta, alcohol sales have been privatized since 1993, which was initially aimed at supporting local, small businesses by creating more opportunities for Alberta-based entrepreneurs in the liquor market.

The Convenience Industry Council of Canada (CICC) has expressed its displeasure with the Alberta government’s decision, calling it “un-Albertan.” Sara MacIntyre, the Western Canada vice president for CICC, argued that allowing liquor sales in convenience stores would help these businesses increase foot traffic and improve their prospects for growth. According to MacIntyre, the decision prevents an opportunity for innovation and growth within the convenience store sector, which is already facing challenges related to competition and the changing landscape of retail.

 

Some convenience stores in Alberta already can sell certain alcoholic beverages. As of October, 7-Eleven has 20 locations across the province that sell beer, wine, and coolers, though these sales are restricted to a segregated restaurant area of the store. This type of limited alcohol sales model is one-way convenience stores have managed to increase revenue, but the decision to prevent broader sales limits their ability to compete more widely in the alcohol retail sector.

Premier Danielle Smith supported the panel’s conclusions, stating her approval of their findings and the resulting decision. Smith’s stance aligns to preserve Alberta’s local liquor retail industry, which consists of many small, independently owned stores. By maintaining the current regulations, the government aims to continue supporting these small businesses, which are considered vital to local communities and the economy.

While the decision has drawn mixed reactions, the Alberta government remains firm in its stance that protecting small businesses is paramount, particularly given the economic challenges faced by many independent retailers. For now, the existing model, with privatized liquor sales through dedicated stores, will remain in place, providing stability for smaller players in the alcohol retail sector.

 

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