The Country Crossroads liquor outlet in Wakaw, Sask., is facing increased competition after a January permit auction by the Saskatchewan Liquor and Gaming Authority (SLGA).
“It’s going to become survival of the fittest, and some liquor store permits will not be able to stay open,” said Lori Autet, general manager for Country Crossroads.
Wakaw’s neighbouring rural municipality (RM) of Hoodoo had a permit up for grabs in the auction. The SLGA said the RM of Hoodoo was eligible for a single retail store permit due to its population size.
According to the SLGA’s liquor permit policy invoked in 2019, municipalities need at least 500 people to qualify for a single store — more for areas with larger populations.
“The permittee can develop their retail store anywhere in the municipality,” an SLGA spokesperson said in a statement to Global News.
This means the policy doesn’t specify where permits can open so long as they reside within the municipality’s borders.
Country Crossroads is concerned about rumours that new competitors may be setting up shop very close to their business, given the store’s proximity to the Hoodoo border.
They are concerned about the potential oversaturation of liquor businesses in the area, considering the population in and around Wakaw may not be large enough to support all of them, especially with Wakaw having two existing permits.
“At least they should have a rule saying that the licence in RM should be at least a few kilometres away from the existing town,” said Tung Kun Seu, owner of Country Crossroads.
And this may not be the only liquor store in the province facing close competition.
“I’ve talked to several other smaller retail liquor stores, and they’re very frustrated and very concerned about their livelihood, and so I feel that someone needs to speak up,” Autet said.
According to the SLGA, the next round of auctions for unallocated permits is expected in the coming weeks.