The Beer Store in Ontario is grappling with significant closures across the province, continuing a troubling trend that has affected several of its locations, especially in the Toronto area. On Friday, February 28, multiple outlets are slated to shut their doors, signaling yet another challenge for the retailer amidst the backdrop of rising competition from convenience stores and other grocery retailers now allowed to sell alcohol.
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The affected locations include the following Beer Store branches, as reported by the United Food and Commercial Workers (UFCW) Local 12R24:
- 380 Donlands Ave., East York
- 10 The East Mall Cres., Etobicoke
- 500 Princess St., Kingston
- 16715 Yonge St., Newmarket
- 2568 Finch Ave. W., North York
- 82 Northside Rd., Ottawa
- 5544 Lawrence Ave. E., Scarborough
- 3431 St. Clair Ave. E., Scarborough
These closures add to a growing list of reductions in the Beer Store’s footprint across Ontario. Earlier in the year, the chain already saw the closure of its stores in other parts of Toronto, including prominent locations at Yonge and Dundas, Queens Quay, and Roncesvalles. Furthermore, smaller towns like Barry’s Bay, Marmora, Geraldton, Nipigon, Cochrane, and Stratford also saw closures last year. In early 2025, additional closures occurred in areas like Burlington, London, Scarborough, Thedford, Westport, and Chapleau.
The Growing Impact of Increased Alcohol Retail Competition
The closures, though unfortunate, are far from unexpected. John Nock, president of UFCW Local 12R24, attributes these losses directly to the expansion of alcohol sales into convenience and grocery stores across Ontario. “This is definitely a direct cause of the beer market being opened up,” Nock explained in a recent interview. “The closures are all due to Ford allowing alcohol to be sold in convenience and most grocery stores.”
Since last May, 23 Beer Store locations have already shut their doors, with more closures anticipated if the chain cannot stabilize itself amid the rising competition. Under an agreement with the Ontario government, The Beer Store is required to maintain 300 stores across the province until the end of 2025. However, once this deadline passes, there will be no restrictions on further closures, leaving the future of the retailer uncertain.
The Beer Store’s Attempts to Adapt
In an effort to adapt to the rapidly changing alcohol retail market, The Beer Store has been working with the provincial government to explore new strategies to increase revenue. These include the potential sale of lottery tickets and other non-beer items in its stores. Despite these efforts, the closures suggest that these strategies have yet to successfully counterbalance the effects of increased competition.
The shift in Ontario’s alcohol sales landscape is not only a challenge for The Beer Store but also for local craft breweries. Last year, the founders of popular local breweries like Left Field and Blood Brothers raised concerns about the long-term impact of this policy change on their businesses.
“It is very apparent that foreign macro brewers are the ones benefiting from this expansion,” the Blood Brothers team told blogTO. “One of our largest streams of revenue (our bottle shop) is now up for competition with every corner store in our area. Even though we would gladly sell these corner stores our products, they are not interested in selling craft beer.”
Local craft brewers have expressed skepticism over the perceived benefits of the policy shift, especially as foreign macro breweries seem to dominate the market. While many craft breweries remain hopeful, the new competitive dynamics could pose long-term challenges for their growth and market share.
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The Future of The Beer Store and Ontario’s Alcohol Retail Market
As The Beer Store continues to close its doors across Ontario, the question remains: what will the future hold for the chain in the face of mounting competition? While some adjustments and collaborations with the Ontario government have been made to try and adapt to these changes, the overall impact on both larger beer producers and local craft breweries is becoming increasingly apparent.
If no substantial agreements or strategies are developed to counter this shift, Ontario’s alcohol retail market may look very different by the end of 2025, with further closures of The Beer Store’s outlets and even greater challenges for Ontario’s craft beer industry. Only time will tell how these new retail dynamics will shape the province’s alcohol landscape in the coming years.
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