Advertisement
Advertisement

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

RECENT RETAIL INSIDER VIDEOS

Advertisment

Subscribe to the Newsletter

Subscribe

* indicates required

RECENT articles

Canada loses 84,000 jobs in February, unemployment rate increases: Statistics Canada

The largest declines were in wholesale and retail trade (-18,000; -0.6%).

Happy Belly Food Group targets up to 50 new restaurant openings as same-store sales remain strong: Sean Black interview

The company’s “core four” growth brands are Yolks, Rosie’s, Heal and iQ Food. New restaurant openings planned for this year will largely come from those concepts.

Small businesses call for stronger domestic energy supply amid global uncertainty: CFIB

An overwhelming majority (90%) of small businesses say governments should prioritize increasing Canada's energy production and capacity to better support the economy and ensure businesses have reliable access to the energy they need to operate.

The New Luxury Client in a Relationship Era

How The New Luxury Client is reshaping Canadian luxury retail through ritual, clienteling and emotional connection.

Bespoke Made Suits Opens Downtown Vancouver Showroom

Vancouver-based Bespoke Made Suits expands with an appointment-based tailoring showroom near the city’s Financial District.

Daily Synopsis: Mar 12, 2026

Cuba's fuel shortage impacts Canadian cigar stores, Manitoba asks Sobeys to scrap property restrictions, Ontario to allow shopping on 2 public holidays, alcohol in corner stores impact worker safety, redevelopment of former Sherwood Park Safeway, and other news.

73% of Canadians Now Shop Chinese Marketplaces

Survey finds 73% of Canadians shop Chinese marketplaces like Temu and Shein as monthly and weekly usage continues to grow.

Canadian hotel industry sees steady growth as leisure travel drives performance: Cushman & Wakefield

2025 ranked among the stronger years for hotel transactions over the past two decades, highlighted by several notable full-service and luxury hotel trades.

Article Expands Brick-and-Mortar Retail with Toronto Showroom

Vancouver-based furniture brand Article expands brick-and-mortar retail with a 9,600-square-foot Toronto showroom in King West, marking its second physical store.

Empire Company Limited reports Q3 financial results

Sales of $7,890 million, an increase of 2.1%.

Chatime focuses on strengthening brand leadership in Canada as expansion continues cautiously: Trinh Tham interview

Chatime currently operates about 100 locations across Canada, primarily in Ontario and British Columbia, and opened six new stores last year while preparing additional locations that are expected to come online this year.

VIDEO: 87% of Canadians feel financially trapped by rising living costs: Harris & Partners

85% report their overall monthly expenses have increased in the past 12 months

Butterly Trust Index Maps AI-Era Product Reviews

Butterly’s 2026 Trust Index shows how honest, balanced reviews influence AI-led discovery, and what Canadian brands and retailers can do next.

Abercrombie & Fitch Expands Canadian Store Network

Abercrombie & Fitch expands in Canada with new stores planned in Winnipeg, Ottawa, Calgary and London ON, and a reopened location at West Edmonton Mall.

Daily Synopsis: Mar 11, 2026

What might be next for Roots, Pokemon cards hot for theft, downtown Sudbury mall wins legal battle over 2004 Zellers exit, and other news.

Women Entrepreneurs Reshape Canada’s Franchise Industry

Women entrepreneurs are gaining momentum in Canada’s franchise sector, with leaders expanding into construction, automotive, and skilled trades.

Future of Calgary’s Hudson’s Bay Building Discussed

Experts will discuss the history, current status, and potential future of Calgary’s historic Hudson’s Bay building at a public event on March 26.

MUJI opening its newest Canadian store in British Columbia

MUJI has steadily grown as the go-to brand for millions of loyal customers in 30+ countries and 7,000+ products.

Dr. Phone Fix reports over 50% same-store growth and productivity improvements following Geebo acquisition

Dr. Phone Fix said it has begun transitioning the Geebo locations from repair-focused service centres into a broader retail platform.

Sleep Country CEO sees growth amid consumer uncertainty, expands U.S. and UK operations: Stewart Schaefer interview

“I'm bullish for the second half of 2026. And I'm even more bullish into 2027."