EDMONTON - Rick Crook says he’s “cautiously optimistic” about the outlook for the Alberta and Canadian economies this year, but he’s not ready to uncork the bubbly just yet.
As CEO of Liquor Stores N.A. Ltd., which has outlets in two U.S. states (Alaska and Kentucky) as well asAlberta and British Columbia, Crook is keenly aware of the troubling economic and fiscal issues still plaguing the U.S.
“For 2011, Canada is improving slowly. We’ve done well with our conservative (policies) through the bad times. That will continue to pay off. We just have to be cautious as we move forward because I don’t believe the U.S. economy is improving,” he says bluntly.
“We still rely a lot on the U.S., so we just have to continue with our conservatism and build slowly on our improving economy. So I see 2011 slowly improving and 2012 building on that. We’re seeing growth in our same-store sales and I think that growth will continue, which tells us people have a little more confidence.”
If there is a star performer in the company’s 236-store network it’sAlberta, where Liquor Stores ranks as the province’s largest private liquor store operator. For the first quarter, same-store sales in Alberta grew by a reasonably healthy 4.8 per cent, well above the growth rates elsewhere.
A year-over-year drop in B.C. same-store sales — partly reflecting the impact of the reviled HST (Harmonized Sales Tax), and the temporary boost in early 2010 from the Vancouver Winter Olympics — reduced total Canadian same-store sales gains for the latest quarter to 2.6 per cent, he says.
In the U.S., the comparable increase was just 0.3 per cent.
Like most observers, Crooks says the energy sector is driving the gains in Alberta.
“I think the continued investment in oil and gas means people will spend more money and be more confident in their outlook, and it will also bring more people back to Alberta that we lost during therecession. So from an economic point of view it bodes well for business in Alberta.
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