Ontario Passes 1,000 Cannabis Stores
The Ontario Cannabis Store (OCS) announced that Ontario has now passed 1,000 cannabis stores in the province. The 1,000th store to open is 6 of Spade, a Black-owned and family-run cannabis retailer in Toronto.
“In just over two short years, we’ve reached 1,000 Authorized Cannabis Store locations across the province,” the OCS said in a statement.
According to its website, the 6 of Spade is a community-focused cannabis retail chain rooted in Toronto’s cannabis culture. 6 of Spade follows six guiding principles found in African culture: Unity, Creativity, Purpose, Cooperative Economics, Faith, and Self-Determination.
“The number six in our name represents both the 6 most common terpenes found in cannabis and our beloved city of Toronto, which is affectionately referred to as the ‘6’. Toronto is a bustling melting pot of different people, cultures, and traditions. We’re proud to live, work, and play in a City that progressively highlights the differences of its people, and attempts to build inclusive communities.”
OCS Calls 1,000 Cannabis Stores a Huge Step – LPC
The OCS called surpassing 1,000 cannabis stores a win again illegal cannabis sources.
“Not only is this a huge step for the legal market, but it has created a diverse roster of retail partners that we’re so proud to work with every day,” the OCS wrote.
The stats back this up. A year ago, Stats Canada announced that legal cannabis sales outpaced illegal sales. But how many is too many? Nearly 250 or one-quarter of the 1,000 cannabis stores are in Toronto. There seems to be some backlash to the number of stores opening up. According to BlogTO, one tweet read, “Are cannabis stores the new Starbucks in Toronto?” Another asked, “HEY @cityoftoronto – this isn’t a joke anymore. Enough with the cannabis stores.”
However, that might be a reaction to the sudden change rather than it actually being “too many” cannabis stores. The Toronto Sun asked how many is too many cannabis stores earlier this summer.
The reality is likely much different. In Regina, a report from industry analysts estimated that one legal cannabis store for every 10,000 people is enough to disrupt the illegal cannabis market. Based on those numbers, Ontario can support 1,450 retail outlets. However, based on the Alberta experience, Ontario could support closer to 3,000 cannabis stores. Toronto alone could support 293 stores based on the 10,000 rule – and likely more, if you consider the fact that nearby Mississauga doesn’t have any legal cannabis stores.
OCS Itself Wonders About 1,000 Cannabis Stores – LPC
Despite its social media excitement, the OCS is also wondering about 1,000 cananbis stores in Ontario.
“Unfortunately, this rapid growth will likely result in some retailers being faced with increased competition and a crowded marketplace, which could result in some closures and market rightsizing,” David Lobo, the interim president and chief executive of the Ontario Cannabis Store, said in an annual report released this summer. “At the core, all retailers will be challenged to further drive a relentless focus on targeted consumer segments and differentiating themselves from others,” he said.
(Incidentally, BlogTO mentions some cannabis stores have already closed in Toronto, but doesn’t mention names. A Google search revealed nothing. Do you know of a confirmed closure? Post it in the comments below.)
Time will tell if 1,000 cannabis stores is too many – or not enough.
Read the Full Story at CTV News
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