3600+ Stores 5 Years After Legalization

Canada has over 3,600 cannabis stores five years after legalization.

Despite continued store and Canadian sales growth, stigma around the plant remains and industry is feeling the pinch of policy constraints, high taxes, a turbulent market, and a longer path to profitability than many expected.

The legal industry continues to work to displace the illicit market with some arguing that structural barriers still exist making it difficult for the legal industry to compete.

Stores by Province

Here’s the breakdown of licensed stores by province as of September 2023:

• British Columbia: 498
• Alberta: 746
• Saskatchewan: 175
• Manitoba: 190
• Ontario: 1,758
• Quebec: 98
• Newfoundland and Labrador: 48
• New Brunswick: 30
• Nova Scotia: 49
• Prince Edward Island: 4
• Nunavut: 1
• Northwest Territories: 6
• Yukon: 8

Canada had a total of 3,611 stores in September 2023, an increase of 4% from the start of the year and up 6.7% from September 2022 and 33.3% from September 2021. Canada had 2,859 stores at the end of 2021 and 3,472 stores at the end of 2022.

Provincial Growth

In general, provinces saw the highest increase in store count between 2021 and 2022; growth noticeably slowed between 2022-2023.

Over the past year, some provinces have experienced no growth.

The number of stores in PEI, Nunavut, and Northwest Territories has remained the same since 2021 at four, one, and six respectively. The number of stores in the Yukon has remained consistent since January 2023 at 8 but increased from 6 stores in 2022 and 5 stores in 2021.

Ontario has the highest number of stores in the country at 1,758. The province had little change in store count between 2022 and 2023 but the number of stores increased by 35.75% between 2021 and 2022. Although new stores are still opening, there are a significant number of stores that have closed their doors due to an over-supply of retailers in cities like Toronto and Hamilton.

Newfoundland and New Brunswick had the highest increase in stores since January 2023. Newfoundland has 48 stores, up 17% from January. New Brunswick has 30 stores, up 20% from January. This past summer, Cannabis NB allowed private stores to open in the province. Nine stores opened this summer with more expected in 2024.

Alberta was the only province to see a drop in store count since January 2023, down 0.93% from 753 stores to 746 stores. It saw a similar decrease between 2022 and 2023. This decline is due to market saturation in Edmonton and Calgary, where stores found it too difficult to be profitable.

What to Expect in the Future

While growth has slowed in 2022 and 2023, the number of stores continues to increase across Canada.

The federal government’s review of the Cannabis Act is ongoing. A new report from the Expert Panel identified key challenges that are hindering industry growth, including the 10 mg THC limit for edibles; the burden of taxes, mark-ups, fees, and regulatory compliance costs; the risks of a consolidated market; the excess supply of cannabis; the challenges of competing with the entrenched illicit market, and more. The Expert Panel plans to seek further advice on improving the economic and financial viability of the industry.

Cannabis NB is excited for a new era of cannabis, while other provinces have started to loosen regulations. Industry hopes there will be further action from the federal government in adjusting regulations and taxes to allow for a more viable industry.

Main image courtesy of Mood Cannabis