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Nov 8, 2017 in Analysis
In opposition to the LCBO, the Beer Store does not regulate prices and selection of a product. The openness of the Beer Store provides a highly competitive beer pricing market and competition between brands within the corporation. Government attempts to initiate deregulation of the industry completely failed in Alberta. On the other hand, the regulated model of the Beer Store resulted in lower prices and broader range of products.
The prices of the Beer Store are the lowest if compared to the prices in other provinces of Canada. The current retailing system in Ontario seems beneficial and positive for the development for either the Beer Store or the LCBO along with government. The beer retailing system in Ontario balances between the needs of customers, public concerns and government that collects a considerable amount of revenues from the industry. Thus, TBS plans to invest $30 million in retail and “open 13 new stores and renovate 61 others in 2014” (TBS, 2014). Another government attempt to restructure the industry by replacing corner stores by convenience stores is close to failure. First of all, it may lead to increasing prices that would dissatisfy 81% of Ontarians who are now satisfied with the current system (TBS, 2014). Secondly, it would not bring more products to the stores as soon as the Beer Store possesses one of the greatest range in the country. The Quebec model can hardly be effective in Ontario without Quebec’s taxes.
Among peculiarities of the Beer Store marketing, is an open listing philosophy that enhances the range of brands available in any store and more effective competition between brands. Due to this policy, the Beer Store has larger range of product than any retailer in Quebec, British Columbia and others. At the same time, it does not mean that nothing can be improved, especially concerning the taxes. For instance, in Quebec and Alberta taxes are much lower than in Ontario. The deregulation of beer retailing industry, which was held in Alberta had a negative effect on this domain. As a result of this deregulation the beer retailing is much free, but at the same time, there are the highest prices in the country that provoked a lot of concerns from private sector retailers and consumers. Thus, the deregulation and promotion of convenience stores is just a delusion of government that does not want to be involved in the liquor business.