One can grow tons of high quality product, but that's just one of the first steps in the cannabis value chain. That product still needs to reach customers, and the cannabis retail space too has been dealing with its own sets of challenges. In a recently released report on the state of cannabis retail technology, it has been noted how Canadian retailers are still figuring out how digitalization can help them increase sales.
Online sales are still crawling
Breadstack's survey of more than 350 Canadian retailers shows that online sales remain a minor part of the picture. Almost half of stores say eCommerce makes up less than ten percent of their revenue. So while cannabis consumers can order almost anything else in their lives online, their dispensary purchases still happen mostly face to face.
And yet, when orders do go through digital channels, they perform better. About a third of delivery orders are worth more than seventy Canadian dollars, compared with fewer than one in ten in-store transactions hitting that mark. In other words, people spend more when they are browsing from the couch. This left open the question as to why this sales channel isn't more utilized. The answer depends on who you ask, regulation, tech platforms, customer habits, but it all points to a single theme: Canadian cannabis retail is still learning how to sell online.
© Olesia Chikova | Dreamstime
Delivery and data are where growth lives
Delivery already shows what digitalization can do for cannabis retail. It drives bigger baskets, steadier repeat orders, and stronger loyalty. It also builds a different relationship with customers, one that goes beyond the store counter. The opportunity now lies in connecting the dots. Online ordering, fulfilment, payments, loyalty systems, all of it has to work together.
Budtenders matter more than ever
Budtenders remain the backbone of cannabis retail, and according to the report most of them are under forty-five. They are knowledgeable, engaged, and directly shape the customer experience. The problem is, many of them lack the digital tools to bring that experience online.
Imagine a budtender who can not only recommend a strain in person but also follow up digitally, send loyalty perks, and keep that connection alive beyond the first sale. That is where real loyalty lives. Retailers who train their staff for that kind of role will have an edge, not through technology alone, but through people who know how to use it.
Regulation and tech are still the main drag
On the other hand, Canada's cannabis retailers are still wrestling with their tech stacks and with regulation that does not move fast. Nearly half of survey respondents point to provincial rules as a major obstacle; four in ten say the same about federal ones.
On the tech side, frustration is equally common. Many retailers say their eCommerce platforms are too rigid, hard to integrate with delivery systems, or lacking proper loyalty and payment options. These are not small issues, they are what make or break a customer experience. However, the report is far from pessimistic. About two thirds of respondents expect digital sales and loyalty programs to grow significantly over the next two years.
The next phase of cannabis retail
The report clearly shows that the Canadian market already knows how to sell cannabis. Now it has to learn how to sell it digitally. The ones that make the leap first will not just sell more, they will understand their customers better and build brands that actually last, the report suggests. In other words, cannabis retail in Canada can seize quite the profitable opportunities if they manage to bridge the gap between a largely matured cannabis market, and the digital market.
Source: breadstack.com