Davidson liquor store to convert to private shop

Customer service representative Ila May Northrop stocks bottles of whisky onto the shelves of the Davidson SLGA liquor store on Wednesday.
Customer service representative Ila May Northrop stocks bottles of whisky onto the shelves of the Davidson SLGA liquor store on Wednesday.

By Joel van der Veen

REGINA — Davidson’s SLGA liquor store would be among the 40 public outlets converted to private businesses under sweeping reforms to Saskatchewan’s liquor retail system announced by the province last week.

Don McMorris, the cabinet minister responsible for the Saskatchewan Gaming and Liquor Authority, announced what he called a “new direction” for liquor retail in the province at a press conference in Regina on Wednesday.

The changes also include 12 new private liquor stores in what the ministry has deemed “underserved communities,” along with a new retail model that the province said will create an even playing field for retailers.

The current system provides different rules for government liquor stores, full-time private stores, rural franchises and off-sale outlets.

Under the proposed changes, all liquor retailers would be under the same regulations regarding the wholesale price at which alcohol is purchased for resale, hours of operation, product selection and the chilling of beer products, along with other factors.

McMorris said the new direction is based on the results of a three-month consultation process launched in November 2014 and completed in January.

More than 6,600 residents filled out a survey, providing their feedback on five possible options for liquor retail in Saskatchewan, while another 3,300 posted comments online.

McMorris told the Leader on Thursday that the consultation had revealed some key points.

This included a desire among respondents that any changes to the system would maintain the revenue provided to the provincial government through liquor sales, noted by 54.8 per cent of respondents.

He said he also heard residents express a desire for greater selection, improved convenience and more competitive pricing.

Of the respondents, 61.7 per cent supported a greater role for private liquor retail stores, while 58.0 per cent stated the government should focus on investing in other public priorities.

Figures were provided on the 40 stores that would be converted to private outlets, including Davidson’s liquor store on Washington Avenue.

According to the province, between 2013 and 2015 the Davidson store has had average annual sales of $961,000, and operating expenses of $182,000, for an overall operating ratio of 19 per cent.

The building is owned by the province and was constructed in 1960. The store currently employs three people, or the equivalent of 1.6 full-time employees.

Overall, the 40 stores have an average annual sales total of $76.9 million and employ 196 people, with an FTE of 101.8 people.

The announcement prompted a range of responses, both positive and negative.

For the full story, please see the Nov. 23 edition of The Davidson Leader.