The Ontario Cannabis Store (OCS) is expected to open a second distribution warehouse by September, according to BMO Capital Markets’ Analyst Tamy Chen. In a note to investors, Chen attributed the slow roll-out of retail stores and overages of old stock in Ontario to the OCS’s single distribution warehouse. Claiming that these factors contributed to slow growth of the industry, Chen said that if the OCS does open another distribution warehouse, it could be a positive thing all across the board, increasing sales and supporting a better supply inventory.
According to a statement from the OCS, when private retailers declined to participate in delivery of inventory, the government confirmed that the OCS may expand their privately operated distribution network “when necessary”, however, they didn’t confirm if there was another warehouse in their future.
The current warehouse is similar in size to the one used by BC Cannabis, but BC is a much smaller market than Ontario. It may be “necessary” to open a new warehouse sooner, rather than later.