Post by
LastoftheFranks on Nov 10, 2021 10:22am
Pot Shop Apocalypse Is Irrelevant
Retail store closures are irrelevant to cannabis consumption and sales. The current over-saturation of stores means revenues from the local cannabis consumer base are too small per store to maintain the current number of retailers.
A scale back in retailers does not shrink the overall cannabis consumer market, it just consolidates where consumers spend their money. The retail sector sprawled out on a combo of bad gov't intervention (license lottery + long rollout timeline followed by abrupt ending license lottery + condensing the timeline and focus on rapid deployment) and the flawed notion that because cannabis is now legal everyone would get into it.
If there are 10 stores on your block today and next year there are 5, the only thing that changes is your walk between stores is 30 seconds longer. Sales and spending by the local consumer base remains stable.
Comment by
Adventurous on Nov 10, 2021 10:45am
Also a reaction to CBC reports (see previous posts) on ILLEGAL stores selling fake cannabis products. Nextleaf is on the LEGAL side, only the legal stores have a future. The market for legal cannabis products will actually GROW once the illegal stores selling fakes are taken out. Glacial Gold arrival in Ontario this spring, once all this mess is cleaned up, will be super timely.