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Convenience Stores throughout Ontario have now completed 'Convenience Week’ and we were overwhelmed by the support we received from retailers, customers, & politicians throughout the province. Dozens of MPP's & MP's stopped in to meet the hard working families who were excited to have photo ops taken in their stores. Both Ministers of Small Business (MP Mary Ng & MPP Nina Tangri) were a big part of the week. Special thanks to MPP Stan Cho for
dedicating this week to our industry, a decision that was also supported by Premier Ford.
As a result of us working together, the true winners for the week were the Children's Charities. The four charities are: CHEO - Ottawa, Children’s Foundation Hospital – London, McMaster Children’s Hospital – Hamilton & Sick Kids in Toronto.
The OCSA is proud to see the voice of the independents is being heard at all levels of government as demonstrated during Convenience Week. Thanks to all who made this week a reality as we work for a stronger and better convenience store future in Ontario. Special thanks to the Ontario Lottery for your support of the industry and the week with additional commissions paid out on Lightning Lotto to all convenience stores with a donation to the charity.
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We wish to inform all retailers that as of September 10th, Paygos will no longer be providing services and shipments to Ontario convenience stores.
Paygos was launched in April 2021 to provide independent convenience stores access to wholesale pricing and promotions all conveniently delivered right to your door. Unfortunately our convenience store community was not prepared to adopt online ordering and delivery. It is regrettable that our industry will no longer have this resource and our family-run convenience stores will return to their old way of purchasing goods.
We want to thank the 300 stores in the GTA who were registered with the Paygos program. Unfortunately because orders were not done as regularly as projected, there wasn’t enough demand to sustain the business model.
The OCSA has no obligations to Paygos as we wish them well with future endeavours.
Special thanks to those who supported this concept over the last few months and we will continue to work on a better future for convenience stores throughout the province.
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Effective July 12, 2021 the Beer Stores have imposed a $250 delivery fee on all 400 LCBO Agency stores located throughout rural Ontario. This will potentially add an additional $13,000 fees to their business with no way of recouping these new costs, which is concerning as the LCBO also charges these same stores 2.5% in delivery costs (no cap).
If you also consider credit card fees, labour, rental space and electricity, there is little to no margin left running an agency store. The OCSA has communicated this with the Ministry of Finance (with little response) and have suggested some opportunities to offset these projected losses.
The Ontario government has been in a difficult situation with the Beer Stores and the MFA agreement and hopefully the time has come to review the entire agency model.
One area that the Ministry of Finance could consider taking action in the short term is the retail sales costs of all beer and liquor products sold in our agency stores while respecting the minimum prices set out by the LCBO. The option of charging a higher price and allowing the agency stores to earn more of a profit is the easiest solution.
Keeping in mind that bars, restaurants and even delivery companies have the option to charge higher retail prices on these same products which helps to offset operational costs, such as delivery fees. We also know that people shop in the convenience stores for quick and local services with the understanding that they will pay a higher margin for the convenience and location.
1) The government doesn't have to fight with the Brewers about reducing their profits or not allowing them to pass along delivery costs.
2) Customers know that convenience stores charge more than grocery stores or mass market retailers.
3) Set a maximum amount the agency can charge to control the amount the customers will have to pay. I suggest this be a 10% above the retail the beer stores post.
In this scenario, the 10% + the 9.8 % agency stores make now is equal to the average margin convenience stores make on selling beer in Quebec and the USA. (i.e 20%).
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The entire convenience channel is disappointed that the promise of beer/wine made four summers ago has not yet come to fruition. A big roadblock has been the rights to beer retailing being granted to Beer Stores for up to 10 years by the previous government, and the three major beer companies ensuring the expansion to our sector is not allowed (MFA agreement).
On one hand, convenience stores throughout North America are the biggest partner of the three major beer companies while on the other hand bars and restaurants have much more flexibility (including takeout alcohol). Delivery companies throughout Ontario are allowed to upcharge beer to consumers and major grocery stores are approved for over 10,000 Square feet to sell beer in an open retail concept.
Every convenience store in Ontario should contact their local MPP's to ask why we have been excluded as we begin the road to a 2022 election. The future of our channel is the ability to responsibly sell beverage alcohol, which is demonstrated in convenience stores nationwide, except Ontario.
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STLTH has joined the Ontario Convenience Stores Association and looking forward to supporting convenience stores with innovative vaping products in Ontario.
They have the agility to track and trace, which has allowed them to monitor consumer feedback and make supply chain improvements to ensure their products are of the highest quality.
STLTH is passionate to do business in an ethical and honourable way. They too believe youth should be protected from exposure and access to vaping products and only partner with retailers who consistently age test.
STLTH currently offers a total of 9 device colours, and 5 compliant flavours with a variety of 4 nicotine variations.
STLTH provides a premium, affordable, elegant product to their end users.
STLTH wants to give adult smokers their life back by providing highly regulated, safe, and affordable nicotine cessation products to combat their addiction.
Visit their website to place an order and begin making 50% margin today.
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On October 1, 2021, the minimum wage rates in Ontario will increase.
General is a $.10 increase to $14.35
Student Rate is $13.50
Click below to view more information on the new rates.
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Click for more info
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Our lottery business is the #1 traffic creator for in-store sales and with more gaming on the horizon, it is imperative that we promote and sell lottery offerings.
In 2021 we will have had the Plinko Promotion (30 % introductory commission), Top it Up promotion (10% introductory commission) and Lightning Lotto (10 % Convenience Week/September commissions).
This is the first time over the years where we are seeing promotional offers over and above the normal commission rates for convenience stores.
Lottery Facts - C Store Channel
1) Convenience Stores sell 82% of all lottery products for OLG (up 25.6% year over year)
2) Year to date commissions - $113 million to C Stores (up 22.5% versus last year)
Future lottery- Single sport betting has now been approved by the Federal and provincial governments and the entire convenience store channel will soon have the ability to sell under ProLine single sport tickets. We are hoping to have this up and running by early 2022 in all our stores.
This alone will bring in more gaming customers and will also see an influx of millennials to the channel as this is their gaming of choice.
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Please remind all employees to be vigilant when it comes to asking for identification for any customer purchasing tobacco, lottery or vape products as local health units have increased the rate of underage mystery shoppers in the convenience channel.
While we pass at a rate of over 96%, we always need to be the most responsible industry for setting standards and higher compliance.
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Pop Daddy has just joined the OCSA and we are pleased to have such tasty snacks available in Ontario.
Pop Daddy was born out of the passion—some would say obsession—that Pop Daddy Snacks Founders Mark and Erin Sarafa had for microwave popcorn.
Mark and his family were eating microwave popcorn almost every evening when he decided to do some research. When he learned about the chemicals used in microwave popcorn, he realized he needed to find a new, healthier way to feed his family’s addiction!
Mark bought a large popcorn machine and started experimenting with different kernels and flavors in his basement, passing out his popcorn to friends, family, and neighbors. Since you are reading this on Pop Daddy’s website, you may have already guessed that the popcorn was a big hit!
The popcorn became so popular, that they were encouraged to market it to others.
In 2018, the Seasoned Pretzel business was born when Erin’s cousin was visiting from Iowa and brought over a nicely packaged Tupperware of her homemade seasoned pretzels as a gift. Mark brought some to work and the Pop Daddy Employees loved them so much, they convinced Mark to package and sell them too!
For sales information, please contact:
Bruce McCarles
Vice President of Sales
416-708-9673
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The Ontario Convenience Stores Association (OCSA) works year-round to advocate for convenience stores throughout the province, supporting large and small family-run business alike, communicating with the government on relevant files and innovating ways to push the channel forward.
Among the OCSA's current projects are securing beer and wine in convenience stores, advocating for a larger portion of lottery commissions and working with the appropriate authorities to spread awareness about the negative impacts of contraband tobacco.
Your voice is welcome. Join the OCSA today!
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