Retail Model

Types of retail operations include fully government-run, consignment, private, licensed (e.g. owner must obtain a licence instead of – or before signing – a contract). There are also different store set-ups including stand-alone buildings; stores in an outdoor plaza or indoor shopping centre; stores-within-a-store (e.g. enclosed store within a larger retail store); and product-within-store model (e.g. beer or wine available on the shelves of a grocery store). The same safety rules apply under each configuration, but the balance between risk and convenience is different with each. Also, typically price is higher under a private operational model.
NWT liquor stores currently operate on a consignment model. The liquor is owned by the GNWT and sold by the stores on the GNWT’s behalf. Prices – set by the GNWT, not the vendor – are based on cost-recovery plus a mark-up. The mark-up is higher on products that have higher alcohol content. The mark up is meant as a deterrent for over-consumption, to cover the cost of administering the liquor system, and to provide needed revenue for the GNWT. 

Restricted Days and Hours

In the NWT, the days and hours of liquor store operation are in each vendor’s contract, not in legislation. Currently, operating times vary but liquor stores with the most operating hours may operate from 11am until 10pm, Monday to Saturday. These liquor stores are closed on Sundays and statutory holidays. Historically, Sunday closures occurred across many retail environments to reflect the Christian “day of rest”, but this is no longer common. Most retail businesses are allowed (but not required) to open on Sundays and holidays, finding that customers appreciate the convenience of shopping on these days. 
Restrictions on days and hours of retail liquor sales are a point of disagreement for people. On the one hand, restrictions can help consumers pace themselves. On the other hand, restrictions to access are an inconvenience, at best, and could drive people to bootleggers, at worst. 

Options to address restricted days and hours include allowing sales every day, adjusting hours, or allowing communities with liquor stores to decide whether to loosen the restrictions.

Added Services

In addition to in-person sales, NWT liquor stores provide mail order services with some exceptions. Liquor stores cannot send mail orders to prohibited communities or within their local community. Liquor stores must also respect quantity limits when mailing to restricted communities. 

Elsewhere in Canada, liquor stores provide a range of additional services. Examples include online ordering for pick-up; wine clubs; special orders of products from outside the NWT; gift baskets; food pairing advice; and supervised sampling of feature products. Most of these services fall outside legislation and are more prevalent where there is competition and/or a private retail model, but not always. An advantage of adding retail services is to bring a positive perspective to the safe consumption of liquor. A disadvantage is that changes to vendor contracts would be required if these services became mandatory. Also, some people who have suffered from the misuse of liquor may feel uncomfortable with this approach.  

Minimum Prices

Retail liquor prices in the NWT are some of the highest in the country. The GNWT sets the prices according to cost-recovery plus a mark-up. The GNWT is currently reviewing the pricing methods for liquor sales, both to retail customers and to licence holders. The results of that review are not yet available. 

At least one jurisdiction has established minimum prices for retail sales. Minimum prices are the lowest price that a vendor may sell a product type. The purpose of minimum prices is to prevent vendors from setting prices so low that price becomes an incentive to purchase more liquor than a person might otherwise do. In the NWT, minimum prices are not necessary because, under the current consignment system, prices are set by the NWT Liquor and Cannabis Commission and are set intentionally high as a deterrent. However, if the retail model changed, the NWT might wish to have minimum retail prices set out in regulations as a safeguard.