Matt Lamers ????
@matt_lamers
to Bonno
: Sundial CEO predicts ‘massive’ cannabis store closures
“Trickle” of closures could grow into flood “with toll likely closer to 1,000 than 100”
There were 3,138 cannabis stores open across Canada last month, per
@CannaBenchmark
· May 3
POLL: There were 1,468 regulated cannabis stores open in Ontario as of May 2.
Will Ontario end 2022 with more OR less than that number:
Show this poll
11:33 AM · May 4, 2022·Twitter Web App
Canada's cannabis industry as a whole appears to be leaning too heavily on Ontario to sustain growth.
Ontario alone has almost half of Canada's 3,138-plus legal cannabis stores.
??
Ontario store count as of May: 1,468
Across Canada as of last month: 3,138
Matt Lamers ????
@matt_lamers
·
2h
Sundial Growers CEO Zachary George called the phenomenon a “slow motion train wreck”
“Most retailers are struggling to be profitable, and we are starting to observe a trickle of closures on a weekly basis”
Matt Lamers ????
@matt_lamers
·
2h
Another lesson for other countries considering Canada's cannabis model:
Some central coordination needed for retail store rollout, or you could end up like Canada -- almost half the stores in 1 province, which isn't sustainable and puts all producers at risk
2h
Replying to
@matt_lamers
Pretty normal business behavior in emerging markets trying to establish a balance in supply and demand. Everyone wants to try and cash in but there's only so much cash to be had. This is a good thing imo. Quality of weed will have to increase. Will regulate prices down more.
Matt Lamers ????
@matt_lamers
·
2h
We're talking about almost 1/3 of all retailers in Canada potentially going bust, and that's on top of 7,000 lost jobs in the industry already. Capitalism always needs bumpers, and none were provided in this case, hence the financial chaos.
2h
Replying to
@matt_lamers
This prediction doesn’t surprise me. I’ve been watching stores get bought out by bigger players.
Also, starting to see some closures out here and I’m quietly waiting to see what happens when lease agreements begin to expire.
