Ryan Bartsoff, owner of the cannabis retail outlet Giving and Receiving, spoke to the News recently about the evolution of the industry since the nation legalized the product nearly three years ago.--NEWS FILE PHOTO
The three-year anniversary of Canada legalizing cannabis is quickly approaching, and leading into legalization there were many predictions from all sides.
Some predicted an increase in driving under the influence, not being able to breathe while walking down the street, or children getting their hands on cannabis easier than ever.
Other discussions would centre around the economic viability of cannabis retail stores. How many could Medicine Hat sustain? Will stores be able to compete with the grey market? How would product quality be?
Giving and Receiving store owner Ryan Bartsoff says a lot has changed since opening his store in early 2019.
“In just a few years we have seen so much change in this industry,” he said. “The market is evolving so fast, we have no idea where it’s going to land.
“It’s also safe to say the market hasn’t landed yet, so everything is very speculative right now.”
Bartsoff says one of the biggest changes over the first few years of cannabis legalization is the price of his store’s stock.
“Prices are dropping at such an incredible rate,” he said. “Someone can come into the store and buy an ounce of cannabis for that price I used to charge for an eighth (of an ounce).
“It really is fascinating to watch things develop.”
Bartsoff says cannabis store owners need to be careful on how much stock they’re ordering at a time.
“Having extra stock sitting around in my store will only cost me money,” he said. “If a store owner notices a particular item is selling really well, the temptation is to order four or five boxes of it because you want to supply what people want. By the time those four extra boxes come to your store, there can very likely be a newer, cheaper product on the market that forces the price of your product way down.
“All store owners need to research what they have, or they’re going to be taking a loss.”
With about a dozen cannabis stores operating in town, Bartsoff says the market will correct itself over time.
“There are too many stores and that will change eventually,” he said. “People jumped into this thinking it would be an easy way to make a ton of money without understanding the market. The people who need to see a certain amount of profit every month will likely shut down as time passes.
“I don’t think the market can sustain this many stores, especially with more coming.
“This is really an example of a free market, and this city is a great look into how things will work as time goes by.”
Bartsoff says his store was doing well before March of 2020, and continues to trend upward despite the pandemic.
“When we came in, we were absolutely a business on the rise – and it stayed like that for a while,” he said. “Just like every other business out there, we have felt the impacts of COVID on our day-to-day operations.
“You have to strive to be the best. When you do what you can to help people, they notice.”
As for the future of the industry, Bartsoff says there is plenty to be excited for.
“I think cannabis tourism is going to be a really big thing, especially for the cities and towns that embrace it,” he said. “I’m also very excited to see beverages end up in bars. If you can have six beers on a patio, why shouldn’t you be able to sit there and have six non-alcoholic cannabis fruit punch drinks?
“I want to see cannabis lounges in the city when we’re allowed to open them, and I think there will be a place for cannabis fine dining as well.
“There are huge market potentials here.”
