In late November, proponents were selected and announced for Saskatchewan’s 50 available retail store opportunities, through a request for proposal process.
Permits awarded to retail stores are part of a transition to a more expanded private retail system for liquor in the province. The 50 retail sale permits issued include 39 Saskatchewan Liquor and Gaming Authority (SLGA) liquor stores that are being converted into private stores, as well as 11 new retail store permits.
The opening dates for the new stores will vary, because of factors like the need for new buildings or renovations to existing buildings. SLGA stores being converted to private retailers will continue to be open until the new locations are open for business.
The awarding of permits has not been well received by all of the Saskatchewan-based businesses involved in the process. Although Federated Co-operatives of Saskatchewan Ltd. has received several permits for opening liquor retail operations in a number of locations, the organization has expressed disappointment that it was overlooked for permits in larger centres.
A media release from the Federated Co-operatives of Saskatchewan Ltd. stated that the awarding of permits to out-of-province businesses will end up sending $120 million in potential liquor revenue to businesses based outside of Saskatchewan.
“We are astounded by yesterday’s announcement,” said Vic Huard, executive vice-president strategy at Federated Co-operatives. “While local co-ops in small markets are grateful for the permits that were awarded, there is also sincere disappointment that a significant competitive advantage in both the liquor and food business was given to a direct competitor in larger markets that will be taking a large portion of the potential revenue out of Saskatchewan.
Co-op stores in Saskatchewan bid on 30 out of the 50 available permits and were awarded 14 of those permits in rural Saskatchewan. Co-ops in Regina, Saskatoon, North Battleford, Moose Jaw and Prince Albert were not among them.Sobeys was awarded permits for nine urban locations, while three other permits in urban locations were awarded to two other out of province corporations.
It is the contention of Federated Co-ops that this will lead to revenue that could have been kept in Saskatchewan, had it been awarded to local co-ops, not staying in Saskatchewan.
Although there was no license awarded to the Southern Plains Cop-op in Estevan, one co-op store in the area that did receive a liquor license was the Stoughton Co-op Association’s food store. The association will be incorporating a liquor store into its existing location in the town.
“We’re looking to make it a one-stop shop for residents in the Stoughton area. We’re going to do a total reset of our grocery floor here, and incorporating liquor sales into the existing building,” said general manager Deric Reaney. “We’re expecting to carry everything—liquor, wine and beer— a variety of products. We anticipate a bit of growth from that.”
Reaney noted that he would prefer to see the Stoughton Co-operative Association’s sister organizations in the larger centres also receive liquor licenses before out of province companies.
“Smaller communities like Stoughton were awarded, but (co-ops) in the bigger urban centres were all denied,” said Reaney. “We were very pleased when we got the phone call saying we were awarded the license. I was excited, my food store manager was excited, the board of directors was, and a lot of our staff as well.”
