The MD&A as well as the consolidated financial statements and notes for the years ended December 31, 2012 and 2011 are available on the Company's website at this link: www.liquorstoresna.com and on the SEDAR website at www.sedar.com.
Sales for the three months ended December 31, 2012 increased by $11.1 million or 6.6% to $179.4 million (2011 - $168.2 million). The increase is primarily the result of new store expansion in Canada and the United States (10 new stores opened in 2012), offset by a $1.3 million decrease in the Canadian currency equivalent for US sales as a result of foreign exchange rate differences.
-- Canadian same-store sales increased by $0.4 million or 0.3%. -- Same-store sales for the three months ended December 31, 2012 compared to 2011 were negatively impacted by the success of the two Wine and Beyond stores opened in the greater Edmonton region during the last week of September 2012. In addition to drawing customers away from our competitors, these destination-type stores also drew customers away from our convenience-focused stores during the fourth quarter due to their uniqueness in the marketplace and for seasonal holiday shopping as a result of their larger selection of product. Management believes that Canadian same-store sales were impacted in Q4 2012 as compared to 2011 by approximately $2.0 million to $2.5 million as a result of opening Wine and Beyond, which was more than offset by the sales recorded in Wine and Beyond. -- Canadian same-store sales were, to a lesser extent, impacted by: (i) the unfavourable calendar shift experienced for the Christmas and New Year's Eve holiday season (mid-week in 2012 vs. on weekends in 2011), (ii) the delayed start of the 2012-2013 National Hockey League season and (iii) the impact of Alberta's new impaired driving legislation.-- US same store sales decreased by $0.6 million or 1.5%. -- Same-store sales in the United States, down 1.5% or $0.6 million, have continued to be negatively impacted by certain counties in Kentucky going from 'dry' to 'wet' throughout 2012 (i.e. certain counties in close proximity to the Company's stores that did not previously permit retail package liquor sales are now permitting these sales). To counteract the impact of 'dry' to 'wet', the Company has been actively sourcing potential acquisitions or opportunities to develop new stores in counties that have gone 'wet' or in counties where we do not yet have a presence; late in the fourth quarter of 2012 the Company opened one large-format store in Bowling Green, Kentucky. -- To a lesser extent, the decline was due to: (i) the unfavourable calendar shift experienced for the Christmas and New Year's Eve holiday season and (ii) unfavourable weather experienced in Kentucky during November 2012.
-- Sales for the other Canadian and US stores (new stores) were $14.2 million for the year ended December 31, 2012 (2011: $1.8 million) as a result of the ten (10) new stores opened in 2012, including the two Wine and Beyond stores opened in Canada during the last week of September 2012, and the five stores that were opened in the fourth quarter of 2011. Sales for these new stores in the fourth quarter of 2012 exceeded expectations.