Pot shops lucky to be in business amid competition, advertising rules and THC limits

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TORONTO — Sean Kady spent most of his 20s toting around a teal tackle box that once belonged to his roommate's grandfather. Occasionally, people would spot the box and ask to borrow a wrench, but it didn't contain tools or bait.

Kady has since gone legit, having opened Toronto pot shop Cosmic Charlies with his brother in 2021. But the money was so good in his tackle box days, he sometimes wonders if he had the right idea even though he was on the wrong side of the law.

Other pot stores have dealt with a strike that kept B.C. shops from getting supply, job action that affected two dozen Quebec stores and natural disasters like wildfires and flooding. “There's another category of retailers, and I think that they might be in the majority in much of the country, ... where they are simply not sustainable in terms of the revenue that they're bringing in.”

When Cosmic Charlies opened, the brothers were coping with pandemic lockdown measures as well as stiff competition — the Alcohol and Gaming Commission of Ontario counts 1,763 pot shops in the province today."We could barely crack $1,000 a day in sales and we couldn't even let people in the store because it was right before the lockdown ended."

Supply, however, has been an issue for some stores. Cannabis producers have introduced and discontinued products at a dizzying speed, trying to cater to shifting consumer preferences and knocking down their prices to compete with rivals. Sometimes producers can’t keep up with demand, other times buyers are barely interested.

"Alcohol is extremely dangerous and nobody parcels that out," said the Retail Cannabis Council's Pehota.

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