As part of the Saskatchewan government’s privatization of the provincial retail liquor industry, Yorkton will be getting a new private liquor store.
The Sask Party announced November 23 the successful proponents in an RFP (request for proposals) process to take over 39 SLGA stores and open 11 new private stores.
The Yorkton outlet falls into the latter category and will be owned by Sobeys, the national grocery chain based in the Maritimes that includes brands Sobeys, Safeway, IGA, Foodland, FreshCo, Price Chopper, Thrifty Foods and Lawtons Drugs, as well as more than 380 retail fuel locations.
So far, Jeremy Harrison, the minister responsible for SLGA insists the existing Yorkton SLGA store is not in any danger of being privatized or closed.
A communications person from Sobeys told Yorkton This Week he did not have any details to provide such as a location and estimated opening date for the new store or even if those decisions have been made yet. According to the RFP rules, however, the Yorkton store must open within 18 months.
Kerie Scobie, the western Canada spokesperson for the company, was not available for comment.
Federated Co-operatives, the umbrella company for hundreds of local Co-ops in western Canada, immediately slammed the announcement. Local Saskatchewan Co-ops bid on 30 of the possible 50 permits according to a press release, but only received 14 permits, all in rural Saskatchewan. All 12 of the urban permits, on the other hand, went to out-of-province corporations with Sobeys being awarded nine of those locations.
Federated estimates the loss in revenue to Saskatchewan from just those 12 locations will be $120 million annually.
“We are astounded by yesterday’s announcement,” said Vic Huard, executive vice-president of strategy for Federated. “While local co-ops in small markets are grateful for the permits that were awarded, there is also sincere disappointment that a significant competitive advantage in both the liquor and food business was given to a direct competitor in larger markets that will be taking a large portion of the potential revenue out of Saskatchewan.”
The government insists it is maintaining control of SLGA liquor wholesaling, and thereby profits, while decreasing its overhead and providing residents with improved access and variety.
SGEU, the union that represents SLGA employees, says not only does privatization harm communities through loss of revenue that pays for schools, hospitals, highways and long-term care homes, but takes away good, well-paying jobs from families.
