Thorunn Howatt
Northern News Services

Yellowknife (Jan 23/02) - After spending a lifetime in business Perry Smith decided once again to leap into a new venture, this time as owner of Yellowknife's new liquor store, The Liquor Shop.

Yellowknife's new liquor store, The Liquor Shop, opened Monday amid changes to the system the Northwest Territories Liquor Commission uses to retail its product. Donna Smith labels shelves in the new Frame Lake store. - Thorunn Howatt/NNSL photo

"I've been in business all my life," said Smith, who has been involved in everything from coin-operated amusement games to software development and the electrical business.

Last summer, after a five-month, $15,000 study, the Northwest Territories Liquor Commission decided the city needed a second liquor outlet to serve residents of the Frame Lake area. The commission called for proposals for the operation of the original liquor store as well as the second outlet.

Smith was awarded the 10-year contract for the Frame Lake store in October.

"They chose us because our proposal offered the best potential value to the government," said Smith. "We were ready to rapidly deploy."

Smith's proposal was scrutinized using three criteria. Business plan counted for 50 per cent, location 30 per cent and corporation and financial strategy 20 per cent of the commission's decision.

"It's been a lot of work for the past seven weeks," said Smith as he stocked and labelled shelves last week in the before the Stanton Plaza store opened. But the dust won't have settled for long before Smith has to pick up his merchandise and make another move.

"We call this our transition location," he said. As soon as his landlords, the owners of Stanton Plaza, have a new building up, the shop will move into an area twice the size of the temporary location, he said.

Despite Smith's business experience, the liquor store offers new challenges. For one, "it's very capital intensive," he said, referring to the money wrapped up in the purchase of product. Also, the rules revolving around the sale of liquor in the territory changed on Monday, the same day Smith opened.

"It was government-owned stock before," he said. The new system will cause more privatization of the liquor stores. Operators will own the store's stock and control pricing. This is just one of the changes in an evolving business sector.

"Liquor is a sensitive issue in the NWT. It has a history. Changes will be made in slow, measured steps," said Smith.

Starting last Monday, both liquor stores are required to purchase product from the liquor commission.

"At one time we placed the inventory in the stores on consignment and we controlled everything: the listings, the retail price, the whole nine yards. We don't do that any more. We have changed that in Yellowknife," said the NWT Liquor Commission's Ron Courtoreille. The system changed in Yellowknife because of the two-store competitive system but not in the rest of the territory.

The new liquor rules allow Smith to become a specialist in the liquor field and expand his inventory.

The NWT government warehouse has 1,200 products for the liquor store to choose from. The new system should allow for much more choice.

The way customers can pay at the new store is another of the interesting changes offered by Smith. Credit cards and debit cards will be accepted at his location.