Liquor Stores N.A. LQSIF

Alcanna - Alberta Market:

[AntiPumper101]

This observation is not an endorsemnt for or againt Alcanna. 

 

2018 & Prior at Liquor Depot/Barn:  

• Highest retail markup of any liquor chain in Alberta.
• Failure to understand their competition in lower income markets where low margin & high volume models exist & thrive, resulting in a comparatively low capture rate.
• Subscribed to a dated and poor branding/marketing strategy.
• High employee turn-over rate & job dissatisfaction.
• Failure to pass on discounts from wholesale producers at the same passthrough rate of other retailers. This often leads to higher in flyer pricing than competitors and poor sell though at store level.
• Apathetic staff + over pricing offered little or no value to consumers. 
• Previous management stifled growth by failing to adapt to changes in market.
• Wholesale distributors in Alberta operate on payment before delivery. As such no opportunity to receive, sell and pay later exists. In-spite of that knowledge management kept cash tied up in an unnecessary amount of overstock, held in stockrooms & warehouses. This practise often results in taste degraded products being sold customers, leading to poor customer retention. 

2019

• Few years prior...Ace Liquor’s founders sever their relationship from Solo Liquor, form Ace Liquor and find rapid but healthy growth. Alcanna acquires Ace Liquor. The same Ace Liquor founders currently hold shares and manage Ace Liquor. 
• Struggles with opening Nova Cannabis locations due to AGLC licensing backlog. Liquor Depot keeps Nova employees working in liquor stores while waiting for opening day. Later faces further challenges with shortages/product availability.
• Rebranding efforts in place and visible at Liquor Depot stores + social media platforms.
• Visible reduction in inventory on standby at Liquor Depot. Inventory in-line with volume expectations during in-store sales and flyer campaigns. Ace Liquor suscribes to aggeesive pricing, passing on full wholesale discounts.

2020

• Liquor Depot dumps several Area/District Managers & underperforming management at head office level, later sites roles as unessesary.
• Alcanna dumps 40 mostly poor performing locations in Alberta via a private sale.
• Efforts to lower pricing at Liquor Depot and clean up image evident.
• Independent retailers lacking buying power or an aggressive pricing strategy are losing foot hold to surrounding Ace Liquor stores. All remaining Solo Liquor stores not re-sold will become Ace Liquor or Ace Discounter locations.

2020 and beyond

• Ace Liquor has a healthy employee & product turn-over rate. A model Liquor Depot has seemingly noticed and taken action on.
• Alcanna plans to grow Nova despite poor manoeuvring in forming partnership with Aurora.