Article by Dale Carruthers, London Free Press
More of Ontario’s cannabis retail stores will follow the lead of two outlets that are scaling back hours because they can’t keep enough product stocked, one industry watcher says.
But London’s three bricks-and-mortar marijuana stores — all of them open seven days a week — say they have ample supply and don’t plan to decrease operating hours.
The Hobo Recreational Cannabis Store in Ottawa and Canna Cabana in Hamilton are cutting back their hours — closing one day of the week and reducing hours on others — in response to lack of supply.
“It wouldn’t surprise me if the other stores started doing the same thing,” said Michael Armstrong, a professor at Brock University’s Goodman School of Business who studies Canada’s cannabis industry.
Ontario’s 21 cannabis stores — four of the initial 25 still haven’t opened — were allowed to pre-order 100 kilograms of cannabis products prior to opening, with each outlet now allowed to buy 25 kilograms per week.
“Every week that goes by, if they’re selling more than 25 kilograms a week, then that initial stock that kind of gave them a head start will deplete,” Armstrong said.
Pot sells for $10 to $15 per gram at most legal stores.
A spokesperson for J. London on Richmond Street says the store hasn’t had any problems with the limit imposed by the Ontario Cannabis Store (OCS), the province’s pot wholesaler.
“We’re obviously not ordering everything every week,” David Craig said of the many products the downtown store stocks.
“We’re ordering the things that are selling more quickly than others . . . We’re staying consistent.”
A spokesperson for Central Cannabis on Wonderland Road says the store isn’t making the maximum weekly order.