Pot-Shop Proximity Jumps in Canada After a Slow Retail Roll-Out

(Bloomberg) — Canada’s pot industry is having a rough year, but that hasn’t dashed the hopes of retailers looking to cash in on the newly legalized commodity.

The total number of retail cannabis stores rose to 407 in July, an increase of 88% in the past four months, Statistics Canada said Wednesday in Ottawa.

That means nearly half of all residents have a legal marijuana dealer within 10 kilometers (6.2 miles), up from nearly one third in March. The jump is mostly due to the late roll-out of brick-and-mortar retailers in Ontario, Canada’s most populous province.

The concentration of retail stores varies across the country. More than half of all residents in Alberta, Newfoundland, Manitoba and New Brunswick have a store close by, while Ontario is still lagging at 33%.

By comparison, 90% of Canadians lived within 10 kilometers of liquor stores as of last year, according to the statistics agency.

The legal marijuana industry has developed more slowly than expected in Canada and investors have taken notice. This year, several large cannabis companies had to revise or eliminate earnings forecasts amid the slow retail roll-out in Ontario and Quebec. Pot stocks are down approximately two-thirds from their highs in March.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

READ  Huawei ban puts South Korea in a familiar place - caught between the U.S. and China

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Please enter your comment!
Please enter your name here