Ontario’s New Cannabis Stores Expected to Sell $1.25 Million per Month
Ontario’s first legal cannabis shops are finally here. Nine stores across the province opened their doors on April 1 and a dozen more are awaiting approval from the AGCO.
After being granted licenses via lottery in January—and the sprint to open for business by the deadline imposed by the province—one challenge, that the new stores will face is Canada’s nationwide product shortage. That’s despite repeated federal government assurances of ample supplies.
Cannabis shortages certainly seem to exist. Ontario blames them for its initial 25-store limit. Alberta is also restricting shop licenses, while Quebec limits shopping hours.
However, federal officials disagree. Bill Blair, the minister leading Cannabis Act implementation, has repeatedly said supplies are “adequate” and even “exceed existing demand.”
Despite potential shortages, retailers are finally making progress in Ontario. The newly opened stores are set to make legal cannabis more available and therefore more competitive with black markets.
Even one of the province’s most aggressive proponents of brick-and-mortar cannabis retail, Brock University Professor Michael J Armstrong believes the business will be very profitable.
Earlier this week, Armstrong suggested that the average adult-use cannabis store in Ontario will likely bring in roughly $1.25M per month in sales. Meanwhile, Hamilton consultant Olivia Brown, argues the stores—which will be allowed to keep the same hours as LCBOs and Beer Stores, opening from 9am to 11pm—may be even more profitable.
With files from The Canadian Press.