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Canadian Cannabis Retailer Hits $10 Million Milestone

Jon Brown Jon Brown, Stockhouse
0 Comments| January 24, 2019


The first three months of cannabis’ legalization in Canada have proven fruitful for independent retailer Fire & Flower Inc. 
Click to enlarge

The Toronto-based retailer announced that it recently achieved $10 million in sales since opening for business on October 17th, 2018. Fire & Flower opened five shops the day cannabis became legal and has grown its retail network to nine stores in Alberta and Saskatchewan.
 
The Company’s Chief Executive Officer and co-founder Trevor Fencott pointed to this milestone as evidence that Fire & Flower is generating strong revenue with only nine locations rolled out so far.
 
“This significant sales milestone demonstrates strong and growing consumer demand for recreational cannabis and delivers on Fire & Flower’s commitment to capture significant market share in the retail cannabis category,” he said. “Our experienced retail operations team strives to deliver a best-in-class customer experience through a brand that is trusted by consumers in the communities we call home.”
 
For comparison, National Access Cannabis Corp. (TSXV: META) recently announced that it had achieved $10 million in sales between 20 locations across Alberta and Manitoba within that same timeframe. The revenue stream can’t be understated. Elsewhere in the province, Alcanna Inc. (TSX: CLIQ) reported that in the first five days of legal cannabis sales, its five NOVA Cannabis brand stores realized combined revenues of approximately $1.3 million.
 
This is a solid market that Fire & Flower is heavily capitalizing on. As new markets for private retail cannabis emerge, the Company is bringing its customer experience to new locations across the country to markets that allow private retail of recreational cannabis. Its business model is distinct in that it is a data-driven retailer, using information to deliver the most relevant products and also improve their own product to meet the demand of local consumers.

Click to enlarge
(Image via Fire & Flower.)

The customer experience has always been Fire & Flower’s main focus. The Company was founded by expert legal cannabis entrepreneurs who have been providing customers with a finely curated selection of adult-use recreational cannabis. A major component to this is its focus on education. A main feature to Fire & Flower’s shops is its “cannistas” (pictured above) in the centre of the store. Imagine a coffee shop barista who specializes in cannabis so well that they can recommend exactly the strain a customer is looking for. It reflects the knowledge and experience the Company has.
 
In a market saturated with “mom & pop” shops, Fire & Flower utilizes multi-store branded operators as a significant advantage to secure a market share. The Company wants to be the most recognizable brand of independent stores in Canada and is intending to roll out more than 50 stores across five provinces from British Columbia to Ontario in 2019.
 
While the legal cannabis market may have appeared to have been off to a rocky start, it is clear that a number of retailers are fitting into the stream of things quite well. This is especially true for Fire & Flower Inc., who is proving that its model focusing on educating customers is seeing robust business gains and will continue to grow and that investors should do their due diligence on and take a further look into their business and operations.

fireandflower.com
 
 
FULL DISCLOSURE: Fire & Flower Inc. is a client of Stockhouse Publishing.
 



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