When marijuana was legalized in Canada last October, no one expected it would flop as badly as it did. If we're looking at Quebec's SQDC, stores had to go from regular opening hours to only being in business four days a week. If you happened to visit one of the stores lately, it isn't hard to notice how low on stock they are with no expectation of receiving more product anytime soon.
TL;DR The SQDC has sold about $40 Million worth of legal cannabis on both their online platform and in-store. The retailer has still not met market demand, and will not make profit off of sales until spring of 2020. The SQDC plans to expand to 40 stores across the province by 2020 despite the CAQ's plan to raise legal consumption age to 21. More details below.
So, you're probably wondering how much the SQDC has actually made in these last few months, considering inventory hasn't been the greatest.
Well, it turns out that despite the struggles the store chain has had since the introduction of legal cannabis, they're still one of the biggest legal sellers in the country.
With about $40 million in both online and in-store sales, the SQDC president predicts that this amounts to 35% of all legal cannabis sold in the country. This comes as a bit of a surprise since the stores across Quebec almost completely sold out of product after legalization on October 17, 2018.
Surprisingly, the stores are still not making any profit. It's predicted that the SQDC will become profitable by the spring of 2020.
To mitigate the strain on supplies, the stores are now only open from Thursday to Sunday. There is speculation that product availability will improve by spring 2019, stay tuned for more updates on this.
The retail store is currently preparing to have 40 locations open across the province by 2020. The original plan was to expand to 50 stores, but the goal has become more realistic since discovering how high the public demand is for legal cannabis is.
In the meantime, the retailer is preparing for another change coming to the province, which is the new legal age of consumption that the CAQ government is planning to enforce. If the raising of the legal age to 21 moves forward, the SQDC will also need to ensure the new stores don't open near CEGEPs and universities.
Although the SQDC is in competition with the illegal black market, which on average sells cannabis per gram at a lower price than legal retailers, there's possibility that the price of legal marijuana, which is currently $7.27 per gram in Quebec, will increase even more due to demand.
Quebec's legal cannabis market plans to purchase an extra 7 to 10 tonnes of marijuana in 2019 to better meet the high demand, according to the CBC. Unfortunately, there currently isn't enough product to even come close to reaching these goals.
Stay tuned for more information on the SQDC and Canada's legal cannabis market.