Sask to close liquor stores, auction off retail permits
November 2, 2022, 8:26 am
The government of Saskatchewan will complete the transition of liquor retailing to the private sector in 2023.
“With year over year declines in net revenue at SLGA retail, our government has made the decision to get out of the business of selling liquor,” Minister Responsible for SLGA Lori Carr said. “We believe now is the time to complete the transition to the private sector to free up financial resources for other priorities and to mitigate future losses.”
In 2018-19, profits were $9.4 million and in 2021-22, profits declined to $3.2 million. SLGA Retail’s projected net income for 2022-23 is $395,000. In order to maintain profitability, many of SLGA’s current stores need to be relocated or physically adapted to better meet customer needs, at a significant cost to taxpayers with no guarantee of recouping those costs.
Actual closing dates for stores will vary, with all stores being closed by March 31, 2023. Physical assets, including 19 buildings owned by SLGA, fixtures and equipment will be sold in a separate process.
The buildings in Moosomin and Esterhazy are owned by SLGA, so they will be sold.
SLGA will work with the Saskatchewan Government and General Employees’ Union (SGEU) to negotiate a workforce adjustment plan for affected employees.
The retail store permits associated with the 34 stores will be sold via a public online auction process beginning in early 2023. As per usual process, successful bidders must still qualify to hold a commercial liquor permit. Additional details about the auction process will be available later this year.
The closure will not impact SLGA’s Distribution Centre. SLGA will continue to operate as the wholesaler of beverage alcohol for the province as well as the regulator of liquor, gaming and cannabis.
Where are the 34 SLGA liquor stores located?
These 34 SLGA stores are located in 24 communities throughout the province, including Carlyle, Esterhazy, Estevan, Fort Qu’Appelle, Moosomin, Weyburn, and Yorkton in the southeast.
When will the stores close their doors?
All stores will cease operations no later than March 31, 2023. Actual dates will vary depending on factors like lease dates, time required to decommission locations (larger stores will take longer than smaller stores), etc.
How many liquor retailers are there in Saskatchewan? Will any of these communities be without retail liquor service during this transition process?
There are approximately 600 liquor retailers operating in Saskatchewan (including the 34 SLGA stores). All the communities where SLGA stores are closing have at least one other liquor retailer currently operating (where customers can purchase alcohol for take home consumption).
What happens to the SLGA employees at these stores?
SLGA will negotiate a workforce adjustment plan with SGEU for employees affected by the closures. Generally speaking, employees will be eligible for severance and other transitional supports (will vary depending on position, years of service, etc).
What happens to the liquor store permits associated with the 34 stores that are closing?
The retail permits associated with the stores will be sold through a public online auction in early 2023. More details will be available later this year.
Why use an auction process?
The online auction format is an objective method to determine a purchaser, giving interested individuals and businesses the ability to follow and participate in the bid process in real time. Using online auctions is not new—this format has been used to sell permits previously. The successful bidder must still apply and qualify to hold a commercial liquor permit.
How much have retail liquor permits sold for previously?
The value of the permits will depend on the interest by individuals/businesses in each community.
Retailers who sell their permits (through auctions or private transactions) are not required to disclose the selling price (it is considered third party commercial information).
When will there be more information about the auction process?
The auction process will begin in 2023. More information will be made available later this year.
What happens to the physical liquor store buildings when these stores close permanently?
SLGA owns 19 of the properties in which these liquor stores are located. The vacant buildings will be made available for sale in a separate process. (The empty physical buildings do not include a liquor permit).
Will SLGA liquor stores operate as normal until their closure date (hours, inventory, etc.)?
Stores are expected to continue to operate as usual, although there may be some changes to operations in the new year as operations wind down (ex. not replenishing slower moving products, hours of operation). SLGA Retail will immediately cease selling gift cards and accepting special orders. Existing gift cards will be valid until the final store closes next spring. Customers looking to place special orders can do so with other liquor retailers.
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