Recreational cannabis sales in Eastern Canada punished by lack of retail expansion

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Nova Cannabis and Juul retailers in Toronto.

Adult-use cannabis sales fell sharply in September in each Eastern Canadian industry except Quebec, a reflection of the industry’s inability to open new retailers to meet customer demand in these provinces.

General sales of recreational marijuana in Ontario, Quebec, Newfoundland, Nova Scotia, Prince Edward Island and New Brunswick declined five.five% to 71 million Canadian dollars ($53 million) in September from the earlier month.

The fall would have been steeper had Quebec not recorded a five% boost to CA$26 million.

Quebec was the only province amongst the group to add to its roster of cannabis retailers in the month by growing its outlets by 4, according to the Société québécoise du cannabis.

Canada’s biggest customer industry, Ontario, remains stuck at 24 cannabis retailers.

Ontario seasoned a six% decline in the quantity of funds spent on marijuana, recording CA$31.7 million in sales.

The steepest declines in Eastern Canada had been observed in New Brunswick, which saw sales collapse 40% to CA$three.two million, and PEI, exactly where receipts fell 15% to CA$1.four million.

Eastern Canada’s struggles helped pull down Canada’s all round sales in September to CA$123 million, a month-more than-month decline of two.four%.

Western Canada – exactly where new cannabis retailers opened their doors in September – seasoned a rise in retail sales.

Cumulative receipts for adult-use cannabis merchandise in British Columbia, Alberta, Saskatchewan and Manitoba rose two.six%, to CA$50.eight million.

Alberta had 7% extra retailers licensed in September (283) versus August (265), said Chris Damas, editor of Ontario-primarily based BCMI Cannabis Report.

He also noted that the quantity of private retailers in British Columbia rose to 77, with yet another 157 in the queue.

“It has been shown that customers favor conveniently positioned bricks-and-mortar retailers to obtaining at government on line retailers, so they can see and smell the item they are obtaining, and to make certain confidentiality,” he stated.

Damas said store openings in underserved areas are significant for retailers, regardless of whether they’re privately or provincially owned.

“They permit the legal sector to greater penetrate markets at the moment served by illicit dealers and illegal on line dispensaries,” he noted.

‘Market has spoken’

With new merchandise (edibles, extracts and topicals) not hitting retailer shelves in meaningful quantities till subsequent year, retailer openings will continue to be the most significant driver of retail sales development – or lack thereof – in Canada for some time.

Craig Wiggins, managing director of industry researcher TheCannalysts, said consumers do not like buying on line for a range of motives.

“The industry has spoken,” he stated. “Shoppers want to go and peruse a retailer. New customers into the industry unquestionably want to go into a retailer versus carrying out it on line.

“Online for a new customer is just way also complicated to figure out exactly where to start out.”

Canada’s month-to-month retail sales of cannabis can be viewed right here.

Matt Lamers is Marijuana Company Daily’s international editor, primarily based close to Toronto, Ontario. He can be reached at [email protected].

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