E-Malt.com News article: Canada: Nova Scotia’s convenience stores may avoid closure if the government allows them beer and wine sales

At least 10 small communities across Nova Scotia can expect convenience store closures this year, the president of the Atlantic Convenience Store Association said Wednesday.

Mike Hammoud said the group will increase lobbying efforts to bring beer and wine sales to corner stores as the small businesses suffer through increasing economic challenges.

"The provincial government can save money and help save these small businesses by allowing them to pursue this additional form of revenue," said Hammoud.

"The convenience stores have demonstrated in Nova Scotia and other jurisdictions they can responsibly handle beer and wine sales."

Nova Scotia permits some sales of alcoholic beverages by convenience stores in small rural communities. Convenience stores in Quebec and Newfoundland and Labrador sell beer and wine.

Hammoud was contacted in Montreal, where members of the Canadian Convenience Stores Association huddled for two days to consider the closure of about 350 convenience stores across the country last year.

"The rate of closures is actually expected to decrease across Canada but not in Nova Scotia, where the costs of doing business continue to escalate," said Hammoud, who owns Newsbreak Cafe on Ilsley Avenue in Dartmouth.

The regional association represents about 2,000 convenience store owners in Atlantic Canada.

Hammoud said the top three sellers for most convenience stores are gasoline, tobacco products and lottery offerings.

"These are the largest revenue generators, but sadly they are the least profitable for the convenience store operators because of low profit margins."

The commission for selling government-regulated products is minimal and ongoing problems with contraband tobacco and excessive credit card transaction fees continue to cut into the viability of operating a convenience store, Hammoud said.

"People use charge cards more often when gas prices increase and the retailer ends up making less because of excessive fees."

Widespread availability of contraband cigarettes continues to plague the convenience store industry in Atlantic Canada.

Hammoud referred to a seizure on April 8 of 350,000 cigarettes during a single operation by RCMP in Edmundston, N.B.

"This certainly illustrates the magnitude of the contraband cigarette problem in our region."


29 April, 2011