Tobacco

Contraband Helped Close 166 Canadian C-Stores

Economic study offers details on convenience retailing in Atlantic Canada
MONCTON, N.B. -- Convenience pack a big economic punch for Atlantic Canada, concluded the first Atlantic Convenience Stores Association (ACSA) Industry Report, a macro-economic study released by the ACSA and carried out by HEC Montreal in collaboration with PricewaterhouseCoopers and financial firm Desjardins.

The report also stressed the fragility of an industry in which growth is curtailed by the dramatic increase in tobacco smuggling that every year deprives c-stores of close to $2 billion in revenues and $260 million in profits and deprives governments of $1.3 billion [image-nocss] in taxes. In 2008, contraband played a significant role in the closure of 166 c-stores in Atlantic Canada.

"This report demonstrates how important convenience stores are to Atlantic Canadians and the sizeable impact our industry has on the local economy," said Mike Hammoud, president of the ACSA. "We're in every community, in every neighborhood, serve every demographic and are entrusted by government to sell more age-restricted products than any other retailer. We're unique. There isn't another retail industry like ours. If we can leave people with one message from today it's that the contribution of convenience stores to job creation, the public purse and entrepreneurship is an exceptional one and must be preserved."

Highlights of the report included:
Canada has 23,500 c-stores, with 2,373 in Atlantic Canada. 10.4 million Canadians shop in a c-store each day, serving approximately twice the population of Canada each week. Atlantic Canadian c-stores employ 16,500 people and generate more than $3 billion in annual sales. Atlantic Canadian c-stores pay more than $200 million in salaries each year, make $2.7 billion in purchases from Canadian suppliers and generate nearly $1.6 billion in tax revenues to government. Atlantic Canadian c-stores sell nearly $3.5 billion in lottery tickets each year. "Convenience stores are key players in the Canadian economy...essential to governments in the sale of controlled products and in the collection of all sorts of taxes. They also play a crucial role in the chain of activities that enables businesses to reach consumers," the report said.

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