3 Key Challenges Facing Cannabis Retail in Canada & How to Overcome Them: Experts

Date:

Share post:

By Retail Insider

With the legalization of cannabis in Canada, we’ve seen a surge of unique spaces emerge in retail – each with their own distinct vibe, personality, and clientele. In 2018, Vancouver-based design firm Cutler put together an internal case study of a fictitious cannabis brand, an exercise in creative development and design to put themselves into the shoes of a newcomer to the industry. The goal: to learn and test what life is like in the world of controlled substance retail.

Fast forward to 2019, we’ve since taken this knowledge to the streets and have worked with several cannabis brands bringing their own individual retail spaces to life. One year later, one year wiser, and with some new projects under our belt, we’ve come across three common challenges in opening new cannabis retail locations and have some suggested solutions on how to best prepare for them. In this blog post, we’ll share some of our key learnings.

PHOTO: CAREY SHAW FOR KIARO – SASKATOON, SK

Gaining General Knowledge about Cannabis Retail Licensing

Each provincial jurisdiction has its own outline for licensing cannabis retailers. When planning for a new store, it’s important to find out the licensing framework and timeline that apply to your location and the documents you will need to submit. There are often restrictions beyond just securing a location and sending the address for approval. For example, in BC, cannabis products cannot be visible from outside the store. Applicants must submit pictures or renderings of the store exterior to show that they meet this requirement. It’s typical that a detailed floor plan, security layout, and site plan are also needed as part of the application.

Working with a design and project management team experienced in cannabis retail can help prepare you for this process. An experienced design team will have inherent knowledge to navigate you through all the hoops of logistics and will provide a purposeful and professional drawing package to help complete your application efficiently.

PHOTO: DESIGN CONCEPT BY THE TEAM AT CUTLER

Ready to Roll, but Waiting for the Green Light

Some jurisdictions also require cannabis retailers to have a lease agreement as part of the licensing application. However, when licensing lead times are long, this can provide difficulty for retailers who need to comply with specific open to market dates within lease agreements. For example, in BC, most stores in the licensing process are still waiting for their municipal and provincial licensing to go through. BC has mentioned that they are in no rush to license new stores to ensure that there will be sufficient stock, these delays are postponing store openings and compromising business plans.

All is not lost without a license. While waiting for your license there are many other opportunities to effectively adhere to your lease agreements. Working with an experienced team will provide an opportunity to adjust and explore options – opening your store as an education center, pop-up retail store (selling non-cannabis items), or a marketing hub to build brand awareness and engage with your community.

PHOTO: DESIGN CONCEPT BY THE TEAM AT CUTLER

Building the Right Team to Build Your Cannabis Retail Experience

When opening a new retail location in any case, there are many components and contributors to consider. Cannabis retail can be fast-paced and volatile – not having essential members of your team onboarding early can delay a project, add unforeseen project costs, and contribute to site challenges. Choosing the right vendors and suppliers can mean all the difference in the success of your business.

Onboarding your team early will access professionals that can provide insight and guide you while assembling your licensing application. They will also be able to give a better understanding of the overall project scope and costs early on. Some common types of vendors might include application advisors, leasing agents, branding and marketing specialists, interior designers, architects, physical security consultants, and IT technologists.

PHOTO: CAREY SHAW FOR KIARO – SASKATOON, SK

It’s not just a store, you want an experience

While there are unique challenges to this new and exciting market, hiring a design consulting and project management firm early in the process can help you be better prepared to overcome the challenges and open the cannabis retail environment of your dreams.

Interior designers and architects will work with you to develop a space to echo your brand voice, bringing your vision to life and all the while aiding in the daunting licensing process. Throughout the project they can produce brand design guidelines, drawings, review existing site conditions, plan major project phases, and assist with efficient store rollouts. When you have the right team together you can focus on the details that will set you apart in a rapidly growing marketplace.

We want to make building your brand’s experience as simple as we can but still be sure to incorporate all the subtle intricacies of who you are and what you stand for.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

More From Retail Insider

Holt Renfrew Bloor Street Flagship in Toronto Marks 45 Years [Feature]

When it opened in March of 1979, it was by far the largest Holt Renfrew store in the chain.

Galleria Supermarket Embarks on Strategic Store Expansion Across Ontario, Targeting Key Urban Areas [Interview]

The grocery retailer is seeking locations in a wide range of sizes, as part of its initiative to operate retail stores while also building awareness for its expansive wholesale division.

Expanding a Brand: Vancouver-Based Entrepreneur Kick-Starts Women’s ‘Wicked Rose’ Martial Arts Activewear Line [Video Interview]

Christina Morrow discusses her plans to rapidly expand her women's martial arts activewear brand, which features performance materials and designs inspired by tattoo art.

The Ballroom Bowl Unveils Bloor-Yorkville Location in Toronto with Additional Expansion Planned in Canada [Interview/Photos]

The upscale bowling and foodservice concept will open another location later this year as it eyes expanding into other parts of Canada, says its founder.

Early Easter Impacting Retail Sales in Canada; New Trends in Chocolates and Merchandising Innovation Showcased [Feature Interviews]

An early Easter, following Valentines, is impacting sales and merchandising in stores. At the same time, some retailers are innovating and looking to make things more experiential.

Canadian Businesses Grapple with Soaring Insolvencies as CEBA Loan Repayments Take Toll: Equifax Reports

It's a perfect storm for disaster with high interest rates, increasing costs and other financial obligations impacting retailers, with insolvencies surging 30% over 2019.

Japan-Based Marugame Udon Enters Canada with 1st Location, Authentic Sanuki-Style Concept to Expand Nationally [Interview]

The world-renowned Japanese noodle hotspot, with over 1,000 locations worldwide, prepares dishes in a theatre-style kitchen. Plans are in place for locations across Canada.

How Canada’s Retail Sector Can Better Serve Families with Children [Interview]

Retailers are missing an opportunity to target parents with children says an expert, while the need to understand Generation Alpha will critical as they become consumers in the years to come.

North America’s First Formula 1 Exhibition Set to Open in Toronto, Showcasing Unique Immersive Experiences for Visitors [Interview]

The highly experiential multi-media exhibit has been designed to engage with visitors while showcasing the sport.

La Maison Simons CEO Discusses New Halifax Store and Retailer’s Ongoing Expansion [Video Interview]

Bernard Leblanc discusses the company's newest store, as well as updates on the company's retail mix, e-commerce strategy, and a future with likely more stores in Vancouver and Toronto.

Australian Haircare Giant ‘Just Cuts’ Announces Canadian Expansion, Eyes Alberta and Ontario for Initial Salons [Interview]

The company has 235 hair cutting salons globally, and is now targeting Canada by seeking shopping centre locations. Its value proposition in this economy could see it expand rapidly.

Rodd & Gunn Opens 1st Standalone Canadian Storefront on Hazelton Ave in Toronto, More Locations Planned [Photos]

Bloor-Yorkville was chosen for the New Zealand-based menswear brand’s first Canadian store, after entering the country through a network of concessions at Hudson’s Bay.

JLL Grocery Report Highlights Contrasting Strategies Among Canadian Grocers to Tackle Inflation and Shifting Shopper Preferences [Interview]

Despite challenges in deal making and urban development, the grocery industry sees potential in discount stores but also emphasizes the importance of grocers as essential amenities within mixed-use projects, says one expert.

Canadian Retail Sales Promising for Some and Ominous for Others in January [J.C. Williams Group Analysis]

The consultancy analyses StatCan numbers for January, noting spending increases in some areas and decreases in other, setting the tone for 2024.

La Maison Simons Opens Store in Halifax, Marking Milestone in Coast-to-Coast Canadian Store Expansion [Photos]

The Quebec City-based retailer opened its first store outside of Quebec 12 years ago, and now has a network of 17 locations from BC to the Maritimes. 

Anatomy of a Leader: Stewart Schaefer, President and CEO of Sleep Country Canada

Schaefer discusses his career over the years, from the financial world to three decades in the sleep industry.

Fitness and Wellness Concept Sweat and Tonic to Open 18,000 Sq Ft. Location on Yorkville Avenue in Toronto

It will be the third location for the company, and joins other boutique fitness concepts opening near the Yonge and Bloor intersection. 

First-Ever Health-Focused ‘KaleMart24’ Opens in Montreal with Plans for Major North American Store Expansion [Interview/Photos]

Described as the "Whole Foods Market" of convenience stores, the new KaleMart 24 is being rolled out in Montreal this year with plans to aggressively move into new markets including Toronto.

Swimco Opens New Stores in Canada, Bounces Back from COVID Hardships [Interview]

The Calgary-based swim retailer, which went bankrupt during the pandemic, has returned and is opening stores as it connects with consumers in new markets.

Changes in Toronto’s Yorkville with Pusateri’s and Flo’s Diner Closing [Podcast]

Craig and Lee discuss the significant closures of Pusateri's grocery and Flo's Diner in Yorkville, Toronto, reflecting on the neighborhood's evolution and future luxury developments.

RECENT RETAIL INSIDER VIDEOS

Advertisment

Subscribe to the Newsletter

Subscribe

* indicates required

RECENT articles

Holt Renfrew Bloor Street Flagship in Toronto Marks 45 Years [Feature]

When it opened in March of 1979, it was by far the largest Holt Renfrew store in the chain.

Galleria Supermarket Embarks on Strategic Store Expansion Across Ontario, Targeting Key Urban Areas [Interview]

The grocery retailer is seeking locations in a wide range of sizes, as part of its initiative to operate retail stores while also building awareness for its expansive wholesale division.

Expanding a Brand: Vancouver-Based Entrepreneur Kick-Starts Women’s ‘Wicked Rose’ Martial Arts Activewear Line [Video Interview]

Christina Morrow discusses her plans to rapidly expand her women's martial arts activewear brand, which features performance materials and designs inspired by tattoo art.

The Ballroom Bowl Unveils Bloor-Yorkville Location in Toronto with Additional Expansion Planned in Canada [Interview/Photos]

The upscale bowling and foodservice concept will open another location later this year as it eyes expanding into other parts of Canada, says its founder.

Early Easter Impacting Retail Sales in Canada; New Trends in Chocolates and Merchandising Innovation Showcased [Feature Interviews]

An early Easter, following Valentines, is impacting sales and merchandising in stores. At the same time, some retailers are innovating and looking to make things more experiential.

Canadian Businesses Grapple with Soaring Insolvencies as CEBA Loan Repayments Take Toll: Equifax Reports

It's a perfect storm for disaster with high interest rates, increasing costs and other financial obligations impacting retailers, with insolvencies surging 30% over 2019.

Japan-Based Marugame Udon Enters Canada with 1st Location, Authentic Sanuki-Style Concept to Expand Nationally [Interview]

The world-renowned Japanese noodle hotspot, with over 1,000 locations worldwide, prepares dishes in a theatre-style kitchen. Plans are in place for locations across Canada.

How Canada’s Retail Sector Can Better Serve Families with Children [Interview]

Retailers are missing an opportunity to target parents with children says an expert, while the need to understand Generation Alpha will critical as they become consumers in the years to come.

North America’s First Formula 1 Exhibition Set to Open in Toronto, Showcasing Unique Immersive Experiences for Visitors [Interview]

The highly experiential multi-media exhibit has been designed to engage with visitors while showcasing the sport.

La Maison Simons CEO Discusses New Halifax Store and Retailer’s Ongoing Expansion [Video Interview]

Bernard Leblanc discusses the company's newest store, as well as updates on the company's retail mix, e-commerce strategy, and a future with likely more stores in Vancouver and Toronto.

Australian Haircare Giant ‘Just Cuts’ Announces Canadian Expansion, Eyes Alberta and Ontario for Initial Salons [Interview]

The company has 235 hair cutting salons globally, and is now targeting Canada by seeking shopping centre locations. Its value proposition in this economy could see it expand rapidly.

Rodd & Gunn Opens 1st Standalone Canadian Storefront on Hazelton Ave in Toronto, More Locations Planned [Photos]

Bloor-Yorkville was chosen for the New Zealand-based menswear brand’s first Canadian store, after entering the country through a network of concessions at Hudson’s Bay.

JLL Grocery Report Highlights Contrasting Strategies Among Canadian Grocers to Tackle Inflation and Shifting Shopper Preferences [Interview]

Despite challenges in deal making and urban development, the grocery industry sees potential in discount stores but also emphasizes the importance of grocers as essential amenities within mixed-use projects, says one expert.

Canadian Retail Sales Promising for Some and Ominous for Others in January [J.C. Williams Group Analysis]

The consultancy analyses StatCan numbers for January, noting spending increases in some areas and decreases in other, setting the tone for 2024.

La Maison Simons Opens Store in Halifax, Marking Milestone in Coast-to-Coast Canadian Store Expansion [Photos]

The Quebec City-based retailer opened its first store outside of Quebec 12 years ago, and now has a network of 17 locations from BC to the Maritimes. 

Anatomy of a Leader: Stewart Schaefer, President and CEO of Sleep Country Canada

Schaefer discusses his career over the years, from the financial world to three decades in the sleep industry.

Fitness and Wellness Concept Sweat and Tonic to Open 18,000 Sq Ft. Location on Yorkville Avenue in Toronto

It will be the third location for the company, and joins other boutique fitness concepts opening near the Yonge and Bloor intersection. 

First-Ever Health-Focused ‘KaleMart24’ Opens in Montreal with Plans for Major North American Store Expansion [Interview/Photos]

Described as the "Whole Foods Market" of convenience stores, the new KaleMart 24 is being rolled out in Montreal this year with plans to aggressively move into new markets including Toronto.

Swimco Opens New Stores in Canada, Bounces Back from COVID Hardships [Interview]

The Calgary-based swim retailer, which went bankrupt during the pandemic, has returned and is opening stores as it connects with consumers in new markets.

Changes in Toronto’s Yorkville with Pusateri’s and Flo’s Diner Closing [Podcast]

Craig and Lee discuss the significant closures of Pusateri's grocery and Flo's Diner in Yorkville, Toronto, reflecting on the neighborhood's evolution and future luxury developments.