By: Allie Cruzado, Paige Morgan, and Maria Michaux
Meet and Yashaswy Patel, two brothers living in Ottawa, have owned a convenience store Our Neighbourhood Store for six months. As convenience store owners, the Patels experience fluctuating prices for groceries, snacks, and now, even alcohol.
Alcohol in convenience stores was implemented in September 2024 increasing the market for selling alcohol.
As of December 2024, alcoholic beverages purchased in-store declined by 1.3 per cent in Canada and 3.4 per cent in Ontario on a year-over-year basis, as reported by Statistics Canada’s Consumer Price Index which tracks what people pay for a range of goods including alcohol.
The falling alcohol prices have created an opportunity for small independent businesses, such as Our Neighbourhood Store, to be on equal footing with large corporate competition and surpass them in sales.
Between December 2023 and December 2024, the price of alcohol purchased in stores has decreased by 3.4 per cent. Wine saw the steepest drop, having decreased by 6 per cent, according to analysis.
With unexpected events such as the federal government’s Temporary Canadian Tax Break which started in December 2024, prices of alcohol plummeted over the last year. During December, the price of all alcohol was at its lowest at 3.4 per cent.
Since the price of alcohol started to dwindle, convenience stores have seen increased foot traffic. For Our Neighbourhood Store, promoting the sale of alcohol has become a marketing strategy on their social media.
Our Neighbourhood Store is a local community grocery store on Meadowlands Drive. The store offers a wide range of grocery items, including special Indian and Middle Eastern foods.
Compared to large corporations, locally owned stores have been able to capitalize on the personal connections they make within their communities. Yashaswy Patel says having the extra revenue is nice.
The Patel brothers have noticed an increase in customer purchases of other store items, such as snacks, cigarettes, and non-alcoholic beverages.
“When people come in to buy alcohol, they usually buy snacks or other things in our store, so that’s nice to see,” said Yashaswy.
Prices for other foods, non-alcoholic beverages, and cigarettes have also decreased by the end of December 2024 compared to December 2023, but not nearly as much as alcoholic beverages.
According to Statistics Canada’s Consumer Price Index, the price of alcohol decreased by 3.4 percent in December 2024, while other foods and non-alcoholic beverages increased by 1.5 percent, and cigarettes increased by 5.6 percent.
Kenny Shim, owner of Busy Bee King Mart and president of the Ontario Convenience Stores Association (OCSA), agrees that selling alcohol is good news for convenience store operators.
Shim writes in an OCSA Update that alcohol sales will increase the amount of impulse buys.
“Sales of impulse items, coasters, party napkins, paper plates, corkscrews and bottle openers will also increase when customers shop for alcohol. In addition, purchases of impulse items like peanuts, nuts, chocolates, and beef jerky will increase, meaning larger baskets at check out”
The Price Drop: How Falling Alcohol Costs Could Benefit Family-Owned Convenience Stores
By: Allie Cruzado, Paige Morgan, and Maria Michaux
Meet and Yashaswy Patel, two brothers living in Ottawa, have owned a convenience store Our Neighbourhood Store for six months. As convenience store owners, the Patels experience fluctuating prices for groceries, snacks, and now, even alcohol.
Alcohol in convenience stores was implemented in September 2024 increasing the market for selling alcohol.
As of December 2024, alcoholic beverages purchased in-store declined by 1.3 per cent in Canada and 3.4 per cent in Ontario on a year-over-year basis, as reported by Statistics Canada’s Consumer Price Index which tracks what people pay for a range of goods including alcohol.
The falling alcohol prices have created an opportunity for small independent businesses, such as Our Neighbourhood Store, to be on equal footing with large corporate competition and surpass them in sales.
Between December 2023 and December 2024, the price of alcohol purchased in stores has decreased by 3.4 per cent. Wine saw the steepest drop, having decreased by 6 per cent, according to analysis.
With unexpected events such as the federal government’s Temporary Canadian Tax Break which started in December 2024, prices of alcohol plummeted over the last year. During December, the price of all alcohol was at its lowest at 3.4 per cent.
Since the price of alcohol started to dwindle, convenience stores have seen increased foot traffic. For Our Neighbourhood Store, promoting the sale of alcohol has become a marketing strategy on their social media.
Our Neighbourhood Store is a local community grocery store on Meadowlands Drive. The store offers a wide range of grocery items, including special Indian and Middle Eastern foods.
Compared to large corporations, locally owned stores have been able to capitalize on the personal connections they make within their communities. Yashaswy Patel says having the extra revenue is nice.
The Patel brothers have noticed an increase in customer purchases of other store items, such as snacks, cigarettes, and non-alcoholic beverages.
“When people come in to buy alcohol, they usually buy snacks or other things in our store, so that’s nice to see,” said Yashaswy.
Prices for other foods, non-alcoholic beverages, and cigarettes have also decreased by the end of December 2024 compared to December 2023, but not nearly as much as alcoholic beverages.
According to Statistics Canada’s Consumer Price Index, the price of alcohol decreased by 3.4 percent in December 2024, while other foods and non-alcoholic beverages increased by 1.5 percent, and cigarettes increased by 5.6 percent.
Kenny Shim, owner of Busy Bee King Mart and president of the Ontario Convenience Stores Association (OCSA), agrees that selling alcohol is good news for convenience store operators.
Shim writes in an OCSA Update that alcohol sales will increase the amount of impulse buys.
“Sales of impulse items, coasters, party napkins, paper plates, corkscrews and bottle openers will also increase when customers shop for alcohol. In addition, purchases of impulse items like peanuts, nuts, chocolates, and beef jerky will increase, meaning larger baskets at check out”
The Patel’s say they are glad the alcohol purchases lead to increased store visits and higher chances for customers to purchase other goods.
“We don’t have much alcohol but buying is frequent enough for us to keep it in our store,” said Yashaswy.
Richard Balaoing, a third-year at the University of Ottawa, says his experience purchasing alcohol from convenience stores has been reasonably good.
“I’d say it’s pretty good they have a great selection,” said Balaoing.
However, Balaoing has found that he is spending more on alcohol from convenience stores. He says he spends an average of $7 for a single cooler or $20 on average for a small liquor bottle.
Another downside Balaoing has encountered is the lack of security convenience stores provide. He says the convenience stores near the University of Ottawa are often crowded with people under the influence, which makes him feel unsafe.
“I don’t feel quite safe, there's usually a person visibly not sober or high on drugs and is touching all the alcohol, and the workers don’t do anything to kick them out,” said Balaoing.
Lisha Lao, a third-year at Carleton University, says her experience with purchasing alcohol has been positive with only a few mishaps.
“There was one time where the only person working wasn’t old enough to sell alcohol,” said Lao.
Lao says that she went home empty-handed that day, but still believes convenience stores can be a decent option for purchasing alcohol.
“The convenience store isn’t really the first thing that comes to mind when I think about buying alcohol, but there have been a handful of times when it's the most convenient option.”
