CAN: "Rapid growth of cannabis stores will likely result in closures"

The head of the Ontario Cannabis Store is warning that the soaring number of cannabis shops in the province will likely result in so much competition that some will close.

David Lobo, the interim president and chief executive of the province's cannabis distributor, said in an annual report released this week that shops will encounter plenty of rivals as 1,000 new cannabis stores are expected to open by September.

“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,” he wrote.

“At the core, all retailers will be challenged to further drive a relentless focus on targeted consumer segments and differentiating themselves from others.”

Lobo's remarks were made in a report revealing that Ontario had 572 cannabis shops across 122 regions as of March 31. Western Ontario had 188 stores, followed by Toronto with 179, the east with 123, the Greater Toronto Area outside of the city of Toronto with 51 and the north with 31.

Read more at bnnbloomberg.ca


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