The cannabis market in Canada has experienced improved days.
Multiple Canadian operators have released earnings reports that indicate increased revenues in the last few weeks.
A more saturated market, according to retailers, is partly to blame.
The issue is so large that even Canadian legislators have begun to take note of it, and some are even vowing to take action.
According to Ottawa City News, the Liberal Party has launched a campaign to reduce the number of cannabis stores opening in Ontario.
As of May 2, the province had nearly 1,500 licensed stores, with another 445 active store authorizations in the pipeline. This is for 14.6 million people living in Ontario.
The total amount of cannabis available is about one in every 7,300 residents, but when you consider that overall only 17% of Canadians aged 16 and older have claimed it, the problem becomes apparent.
According to a new study, one Connecticut-based market data company believes Canada might actually use more dispensaries without reaching saturation.
Canada Still Has Room to Grow (Cannabis)
Canada can sustain more than 5,100 brick-and-mortar retailers, according to Cannabis Benchmarks. Overall, the country currently has less than 3,200 people.
According to cannabis Benchmarks, the average number of stores for a wealthy country of 38.5 million people is at least one store per 7,500 Canadians.
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In Colorado and Oregon, their percentage is based on per-capita store count statistics. There is one recreational retailer for roughly every 9,600 residents in Colorado. In Oregon, there is one legal store for every 6,150 people.
Alberta is the only country in the country that might use a cannabis dispensary hair cut. Cannabis Benchmarks forecasts that the number of stores in Alberta will decline over the 24 months as competition increases and the economy becomes less favorable.
Canada''''s Cannabis Reality
Despite a study that suggests more growth, Canada''s major cannabis stores are in jeopardy.
Canopy Growth (CGC) - Get Canopy Growth Corporation Reportis is undergoing another round of work, confirming last week that it has allowed out 245 employees, or about 8 percent of its workforce.
The company''s headcount has decreased by 1,600 since 2020, according to the latest round of layoffs, which was CEO David Klein''s first year in charge.
As sales decline, the company, which has yet to share a profit.
Cannabis sales in Canada decreased 2% in January in comparison to the previous year, but 3% in February.
For the ninth month in a row, the Canadian Cannabis LP Index was down at the end of March.
Canopy''s Canadian market share rose to just 7% in the January-March quarter, compared to that of more than 11% a year ago, according to Cantor Fitzgerald. Hifyre has provided some data for the company.
The company has also sold several greenhouses in Canada, destroying all of it''s outdoor cultivation operations.
The company has recently stated that the cost-cutting strategies would assist them achieve their goal of reducing costs between $150 million and $200 million.