The hidden opportunity of beverage alcohol sales at convenience stores

A hidden opportunity was created when the Ontario government allowed convenience stores to sell alcohol. This new opportunity has the potential to increase sales of non-alcoholic products and boost store profits.

I expect at least a 25% increase in foot traffic at a minimum, up to 40-50% depending on where the store is located.

Here is why this is good news for convenience store operators.

Stores in Quebec that sell alcohol had a 42% Increase in foot traffic, resulting in additional sales of snack foods and ready-to-eat products, including chips. However, this increased sales potential does not stop with food products.

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.  

Profit margins for chips and salty snacks are around 20-22%, while profit margins for beef jerky are approximately 30%. However, sales of non-food items are even higher, at 35-40%. The key is marketing these items to maximize sales.

Placing any alcohol-related items where the alcohol is displayed. Since we are in the beginning stages of alcohol sales, store operators will learn by trial and error what works in their store location. And, because alcohol requires more shelf and cooler space, it is important to identify products that are not moving and get rid of them.

We are studying what customers want when they come into the store.

There are thousands of wine selections available from the LCBO. I recommend that store operators ask your regular customers questions about what they drink. Then get that product into your store.

You need to communicate with your customers and develop social media to increase your sales and increase profits.

The sale of alcohol comes at a critical time for convenience store operators. Convenience stores are facing challenges from the sale of illegal tobacco products. Illegal sales have stripped away one of convenience store operators' most profitable items.

If the government trusts us enough to sell beer and alcohol, why are they limiting other age-restricted products like nicotine pouches only to pharmacies who don’t age test?

With careful marketing, store owners can increase sales and profits by selling alcohol and non-alcoholic-related products at their store locations.