I don’t necessarily disagree with a government run distribution model since the LCBO reduces our collective tax burden by some 2B$ annually – but the idea of separate stores and a web site is neither efficient nor accommodating of consumer needs.

If the government is adamant about being in distribution, it would be less costly and more in line with consumer expectations to sell the stuff in existing LCBO outlets.  Even small towns are well served by agency stores.  Those same small towns won't see an outlet, and many rural people have trouble getting affordable and reliable high speed internet.