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While critics complain about a proliferation of pot stores in Toronto, 10 have closed, according to the Alcohol and Gaming Commission of Ontario (AGCO).
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The AGCO, which overseas cannabis store licensing, says that as of April, there were 252 pot shops in Canada’s largest city.
But Matt Lamers, the international editor of mjbiz.comsaid recently that despite the closures, the city can support even more marijuana outlets.
“No, there are not too many stores — definitely not,” insisted Lamers, who added that 10 closures “doesn’t set off any alarm bells.”
The AGCO, which says there has been 10 canceled Retail Store Authorizations, doesn’t disclose why the shops closed.
But Lamers has his theories.
“The stores might be in the wrong places,” he said. “They might have the wrong products at the wrong price points. They might not meet consumers’ expectations. They might not have the consumer experiences that people want. … There might be too many close together, but there are not too many.”
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AGCO added there are currently 38 pending permits to open new cannabis shops in Toronto.
Lamers said in states like Colorado, where there are more developed legal cannabis markets, “demand is such that there should be one physical store per 10,000 people. So, for a city like Toronto, which is probably around 3 million people, that means there’s demand for 300 stores.”
Whatever the reason for closing, AGCO spokesperson Ray Kahnert said the organization permits “stores to be located anywhere that other retail operations are allowed, provided the community or municipality ‘opted in’ to have them. The provincial legislation imposes no limits or caps by region.”
Lamers noted that neighboring Mississauga opted out.
“And that’s a huge city — that’s one of the biggest cities in Canada,” he said.
“So, some of those folks go to Toronto for their legal cannabis, or they’ll order online from a store in Toronto, so that drives demand in Toronto. There are a few cities around Toronto that are banning stores. So that’s why you’re seeing more stores there.”