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The Beer Store Announces Multiple Closures Amid Changing Retail Landscape in Ontario

The Beer Store Announces Multiple Closures Amid Changing Retail Landscape in Ontario

The Beer Store, a long-standing retailer in Ontario’s alcohol market, has announced the closure of five of its retail outlets across the province, citing a rapidly evolving marketplace and changing consumer behaviors as key drivers behind the decision. The move marks another significant shift in Ontario’s beverage alcohol landscape as access to alcohol expands beyond traditional retail models.

In a statement released to CTV News, The Beer Store confirmed that the following locations will shut their doors in the coming weeks:

  • 400 King Street West in Kitchener
  • 140 Main Street in Erin
  • 514 Adelaide Street North in London
  • 195 St. Clair Boulevard in Corunna
  • 1106 Front Street in Hearst

Of these, the Kitchener and Erin stores are scheduled to close on April 27, 2025. The company emphasized that employees affected by the closures will be offered options such as relocating to other store locations or accepting a severance package.

Changing Business Dynamics Prompt Closures

Ozzie Ahmed, Vice President of Retail at The Beer Store, noted that the decision reflects the retailer’s ongoing efforts to adapt to new market realities.
“Like any retailer in today’s evolving marketplace for beverage alcohol, we are continually evaluating our business operations to ensure we’re meeting the needs of our customers and adapting to change,” said Ahmed. He added that the company remains committed to customer service, even as it reassesses the viability of its store locations.

Retail analyst Bruce Winder pointed to a broader industry trend: the rise of alcohol availability in convenience stores and supermarkets. “The category of beer sales has seen a decline in demand over recent years. With new government policies enabling beer and other alcohol sales in corner stores and grocers, The Beer Store faces increasing competition,” Winder explained.

Government Policy Plays a Role

Ontario’s recent decision to permit alcohol sales in convenience stores has intensified pressure on traditional beer retailers. John Nock, President of the United Food and Commercial Workers Union (UFCW), highlighted how government intervention has shifted the dynamics.

“With the stroke of a pen, the government made alcohol more convenient,” said Nock. “But that has resulted in The Beer Store no longer needing—or being able to afford—many of its physical locations when brewery beer is now sold elsewhere.”

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According to Nock, this is not an isolated case. “Since May 2024, 23 stores have already been shuttered,” he said, adding that the closures could accelerate in the coming years. “There’s an agreement in place that requires The Beer Store to keep 300 locations open until the end of this year. After that, in 2026, they’ll have greater flexibility to shut down more stores.”

A Legacy in Transition

Founded in 1927, The Beer Store has served as a cornerstone of Ontario’s alcohol retailing sector. Owned by 30 Ontario-based brewers, the chain currently operates 446 retail locations and employs roughly 7,000 people. However, with shifting consumer habits and policy changes, the company appears to be in the midst of a significant transformation.

Impact on Recycling and Bottle Return

The closures may also have broader implications for Ontario’s Deposit Return Program. Currently, The Beer Store is the primary collection point for empty beer, wine, and spirit containers, offering a refund of 10 to 20 cents per returned item.

Many individuals rely on bottle returns as a modest but vital source of income. “Some people collect empties from blue boxes, and it can add up to $100 or $200 a week,” said Nock.

However, Winder noted that the recycling responsibility is gradually shifting to larger grocers and convenience stores. “New regulations require larger retailers to handle bottle returns, making it more convenient for customers to return containers at the same place they buy them.”

Community Reaction

The closures have sparked concern among residents. Donna Carvalho, a long-time resident of Erin, expressed disappointment over the changes. “I think it was a wrong move to put alcohol into corner stores,” she said. “This is not just about beer sales—it’s about jobs and communities. With fewer locations to return empties, the people who depend on those small refunds will be impacted most.”

As The Beer Store navigates these transitions, questions remain about how Ontario’s alcohol retail sector will continue to evolve and what future role, if any, traditional beer retailers will play in a rapidly changing consumer environment.

 

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