The store count in Canada’s largest cannabis marketplace continues to grow.
Last spring, Ontario’s third largest city, Mississauga, overturned its ban on cannabis retail stores, with its first store opening in May 2023, and that market is steadily growing.
High Tide Opens its First Mississauga Store
High Tide opened its 162nd Canna Cabana branded location in Canada, the 54th in Ontario and its first in Mississauga in late December.
The company was part of advocacy efforts that resulted in Mississauga’s City Council approving a motion to allow legal retail cannabis stores to open within its borders. The city is home to 800,000 residents and is the seventh largest city in Canada.
“We ended 2022 with a flurry of store openings, and I am thrilled that the close of 2023 is much of the same. I have eagerly awaited the opening of our first Mississauga store, which I am confident will be a top performer based on the success we’ve had elsewhere in the Region of Peel as well as its premier location, which is steps away from Heartland Town Centre and situated among national retail chains. This location is yet another example of our team’s relentless dedication to securing the best possible lease opportunities,” says Raj Grover, Founder and Chief Executive Officer of High Tide.
This is one of six Canna Cabana location applications in progress with the Alcohol and Gaming Commission of Ontario (AGCO) within the City of Mississauga. There are currently 26 cannabis stores authorized to open, two store applications in progress, and 16 store applications in public notice period for the city.
Other retail brands authorized to open stores include Pop’s Cannabis Co., FIKA Local Cannabis, and The Hunny Pot Cannabis Co.
Barrie Flush with Stores
Barrie, a city in Southern Ontario, about 90 km north of Toronto, is home to 26 cannabis stores with four more store applications in progress.
Last year at this time, there were about 31 stores in the city but 7-8 closed throughout 2023 because of the saturated market.
With a population of 155,137 according to 2022 municipal data, Barrie has an average of one store per 5,171 people. While many stop in the city enroute to cottage country, this is a stark comparison to the national average of one store per 11,119 people or the Ontario average of one store per 8,889 people.
It’s not surprising that Barrie retailers are speaking up about market saturation. However, the city isn’t alone in these numbers.
The city of Guelph with a similar population of 144,356 has 24 stores authorized to open with four more store applications in progress. That breaks down to one store per 5,155 people.
Now that Ontario has opened up the number of stores that one entity can own, we can expect to see a lot more chain stores opening in that province.
Industry has long been saying Canada has reached store saturation. Cannabis sales may have steadily increased throughout 2023 but retailers aren’t necessarily pocketing that profit and a number of producers have gone out of business.
Cannabis wholesale prices have started to rebound, but there is still a need for retail prices to increase for Licensed Producers and retailers alike to continue operating.
Note: This article was updated January 8, 2024.
Image Credit: High Tide Inc.