Meet and Yashaswy Patel, two brothers living in Ottawa, have owned a convenience store called Our Neighbourhood Store for the past six months where the Patels know all about fluctuating prices for groceries, snacks and now alcohol.
The presence of alcoholic beverages for sale in convenience stores started last fall when the province of Ontario increased the market for selling alcohol.
Widening the market happened as there was a decrease, by this past December, in the price of booze sold in-store by 3.4 per cent in Ontario (1.3 per cent in Canada) on a year-over-year basis, as shown by Statistics Canada’s Consumer Price Index, which tracks what people pay for a basket of goods including alcohol. Wine saw the steepest drop, having decreased by six per cent, according to Capital Current’s analysis. The federal decision to offer a GST holiday on alcoholic beverages and other items has helped as well.
Inflation affecting other foods, non-alcoholic beverages, and cigarettes has also eased but nothing like the change affecting alcoholic beverages.
According to Statistics Canada’s Consumer Price Index, the price of alcohol actually fell, while other foods and non-alcoholic beverages increased by 1.5 per cent and cigarettes increased by 5.6 per cent.
Falling alcohol prices seems to have created an opportunity for small independent businesses, such as Our Neighbourhood Store, and put them on a more equal footing with larger competitors.
The price drop was in part fuelled by events such as the federal government’s Temporary Canadian Tax Break which started in December.
Cheaper alcohol has fuelled an increase in foot traffic at convenience stores such as Our Neighbourhood Store, which now promotes the sale of alcohol in its marketing on social media.
Stores, such as Our Neighbourhood Store, have always been able to capitalize on the personal connections they make within their communities. For example, the store on Meadowlands Drive offers a wide range of grocery items, including Indian and Middle Eastern foods, targeted at the local community.
The Patel brothers says they 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.
Kenny Shim, owner of Busy Bee King Mart in Toronto and president of the Ontario Convenience Stores Association (OCSA), agrees that selling alcohol is good news for convenience store operators.
Shim wrote in a recent blog in Canada Convenience Store News, an industry publication, that he expects 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 have led 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 good.
“I’d say it’s pretty good; they have a great selection,” said Balaoing.
Balaoing says, however, that he has found 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 in convenience stores. He says the convenience stores he frequents near the University of Ottawa are often crowded with intoxicated people.
“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.”
