Cannabis sales have been rising month-over-month this year, accelerating since the COVID-19 pandemic was declared in March. As of July 2020, Alberta has the second highest cannabis sales in Canada, following behind Ontario. By the end of this year, Alberta’s legal cannabis sales are expected to reach $540 million.
This reflects the fact that Alberta is home to the largest number of legal cannabis stores in Canada. 524 stores have been approved by Alberta Gaming Liquor and Cannabis (AGLC) as of September 2020, with almost 200 more pending approval. The 500 plus stores make up nearly half of all legal cannabis retail stores in Canada.
Alberta has been leading the way in terms of number of approved licensed retailers ever since cannabis was legalized in Canada on October 17, 2018. While the numbers are seen as a positive, it also means Alberta is on show for the whole country to see how market saturation will affect retailers.
There are many signs that the ‘high’ initially experienced at the beginning of licensed cannabis retail in Canada has not lost its interest. With new product offerings in the last year including edibles, beverages, topicals and vapes, as well as increased quality and pressure on pricing of Cannabis 1.0 products, there are plenty of options for consumers to choose from.
With a wide variety of product offerings, it is important as a cannabis retail store owner to put focus on building your brand by knowing your customer, paying attention to them, and taking their customer service experience to a whole new level. This is what will make the difference now, and in the years to come.
While the number of new license approvals and new retail store locations is great news for Alberta, with any new business in an up-and-coming industry, there are risks involved. The brokers at Fuse insurance understand the Canadian cannabis marketplace and can help you to obtain the right coverage for your business, from start-up to full retail operations. If you’re interested in learning more about the insurance process for your cannabis business, contact us at 1-866-387-FUSE (3873) or read about our cannabis division at www.fuseinsurance.ca/cannabis.