Some feel there are too many dispensaries in Ontario, Canada's most populous province. But a new study suggests there is more room to grow.
Canada's cannabis market has seen better days. Over the last few weeks, multiple Canadian operators have released earnings reports showing sequential declines in revenue.
Partly to blame is an oversaturated market that retailers say is driving down sales. The problem is so pronounced that even Canadian legislators have begun to take notice, and some are even vowing to take action.
But in a new study, one Connecticut-based market data firm says that Canada could actually use more dispensaries without reaching saturation. Cannabis Benchmarks estimates that Canada can sustain more than 5,100 brick-and-mortar retailers. Overall the country currently has less than 3,200. According to Cannabis Benchmarks, the optimal number of stores for a wealthy country of 38.5 million people is about one store per 7,500 Canadians.
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