Gentrified weed: Ottawa pot shops moving upscale
Corporate cannabis is already locking up prime Ottawa sites
A cosy little store on Bank Street in the Glebe that for years sold yarn and thread could soon be transformed into a pot boutique called Ouid.
That’s pronounced weed. The former Yarn Forward & Sew- On store is one of at least seven locations across the city that have been leased by companies hoping to set up cannabis shops.
This is just the beginning. The province has said it won’t limit the number of licences for privately-run cannabis stores that will start opening in April. Officials have estimated there could be 500 to 1,000 stores across Ontario, so Ottawa could conceivably have a few dozen.
Unless the city decides not to allow any shops — a possibility that entrepreneurs are gambling is unlikely. Municipalities have until Jan. 22 to opt out of cannabis stores, a course of action that is not supported by Mayor Jim Watson and does not appear to have traction among councillors, either.
Postmedia has identified two companies planning multiple shops in the province that have already leased storefronts in Ottawa.
The company behind Ouid has leased three:
581 Bank St., just south of the Queensway in the Glebe;
362 Richmond Rd. in Westboro, a couple of doors down from Mountain Equipment Co-op;
258 Elgin St., between Somerset Street West and Cooper Street.
Ouid officials are also looking for locations in Kanata and Barrhaven. The plan is to open four to six stores in Ottawa and about 20 across the province.
Ouid stores won’t be anything like a stereotypical “dark, tie-dyed, black lit, incense smelling” head shop, promises spokesperson Niel Marotta.
Expect a cross between a jewelry store and a women’s fashion boutique, with a bright, airy feel, he said. “Attractive, friendly, inviting, inclusive.”
A Calgary company creating a chain of cannabis shops called Spiritleaf has also moved into town. It has secured four storefronts in Ottawa, one of them in Bells Corners, said Darren Bondar, chief executive of parent company Inner Spirit Holdings. He declined to name the locations.
Spiritleaf outlets are now open in Alberta and Saskatchewan, and are planned for B.C. The company plans a “full court press” in Ontario, said Bondar. The goal is to open 75, the maximum number of stores allowed any one operator under Ontario regulations.
Spiritleaf stores feature a lounge area that promotes Up cannabis, the brand connected with the Tragically Hip.
The stigma created by illegal dispensaries is disappearing as legal stores open, he said. “The cannabis companies that are moving into the market, the stores are unbelievable.
“We’ve built stores that are operating in some community malls, we’re right next to an organic grocery store and a bank and we fit right in. You can come in and you are shopping at a high-end boutique where we are selling cannabis.”
People quickly realize it’s “just regular retail, if not elevated retail,” he said.
“Now that people are going in and out of our stores, it’s becoming a non-conversation. In fact, we are getting tons of positive reviews from landlords and communities that were otherwise concerned, and rightfully so, to realize OK, there is a positive to this. This is the way it’s going to be brought legal and change the stigma.”
The company has received about 500 applications to operate Spiritleaf franchise stores in Ontario, said Bondar. “There’s a lot of buzz around the cannabis industry.”
Inner Spirit Holdings negotiates the leases with landlords and provides a standard design, training and logistical help, but the stores will be independently owned and operated by franchise holders who know their communities, he said.
At Ouid, officials say they look for storefronts in urban, densely populated, upper middle-class neighbourhoods with lots of foot and car traffic.
Like The Glebe, which Ouid promotional material dubs “upscale, historic, hip” and “outdoorsy, upcoming, healthy” Westboro.
It helps to have compatible businesses nearby, said Koby Smutylo, president of Retailgo Corp., the company that operates Ouid.
Like Starbucks, for instance. Smutylo says the coffee chain is also an “accessible premium” brand.
“It’s just like if I treat myself to a latte in the afternoon and it’s a $4 or $5 drink, it’s a little thing I’m doing for myself to make myself feel a little bit better.”
Cannabis will be no different, he predicts, calling the drug “part of your wellness and personal care regime.” The target demographic for Ouid stores is people age 24 to 44.
Smutylo is an Ottawa business lawyer who got involved in the cannabis business when he worked for Gatineau cannabis grower Hydropothecary, now known as Hero. He and Marotta, a former investment banker who also lives in Ottawa, teamed up with veteran grower Pete Young to found Indiva, a Health Canada licensed medical marijuana grower. Indiva has a production facility in London, Ont.
They were interested in opening stores, too, but licensed growers are only allowed to operate one store located at their production facility. So Retailgo Corp. was created to operate the Ouid stores.
So far nine storefronts have been leased across the province, in Toronto, Ottawa and Guelph.
Some large landlords were reluctant to rent to cannabis shops, said Smutylo.
“One of the challenges in acquiring locations is that established landlords — the ones owned by pension funds and real estate investment trusts — are resistant to cannabis shops, even though they are legal and highly regulated.”
That’s partly because of the stigma that surrounds cannabis and fear about the customers who might be attracted to the store, he said.
Some landlords are also part of companies that have operations in the U.S., where marijuana is illegal federally. “They don’t want to risk jeopardizing them in any way.”
Smutylo says Ouid stores will be good neighbours. They also plan to feature local artwork or crafts.
Ouid officials plan to meet with community and business associations in the Glebe, Westboro and Elgin starting next week, he said.
“This industry is going to be in neighbourhoods. And as a new industry, I think we have a responsibility to be respectful, and good community members, and that’s certainly our intention.”
Postmedia canvassed businesses near the proposed Ouid stores, and found support for the idea of a cannabis store on the block.
Sebastien Sardegna, who was working at Barnstormer Hair Studio a few doors down from the proposed store in the Glebe, was impressed by the artist’s rendering of the Ouid design. “Wow, it looks really nice. Kind of a cross between Saje and David’s Tea.”
That strip at the north end the Glebe near the Queensway is “kind of funky,” he said. It has an eclectic mix of businesses. “I think everyone is very open-minded. Hopefully nothing negative comes from (Ouid).
“At this point in time, it’s just going to be like having an LCBO at the corner.”
In Westboro, the Ouid store would take over the space once occupied by a Bridgehead coffee shop, next to Canopy, a store that sells locally produced products, from artwork to jam and jewelry.
“I’m pot friendly, so I’m all for it,” said Canopy manger Lindsay Dupuis. She uses cannabis every day herself to relax. “I equate it to my glass of wine at the end of the night.”
On Elgin Street, Georgette Skaff operates the Hair Dynamic salon next door to the proposed Ouid shop. She wondered if anyone would be smoking pot at the store, saying she didn’t want the smell coming through the joint wall. But when told that Ouid would only sell cannabis, she said she had no concerns.
“As long as it doesn’t affect me, and it’s done with rules and regulations and done with the law, it should be fine.”
Check out these other cannabis chains we may see in Ottawa:
META CANNABIS SUPPLY COMPANY
Ottawa-based National Access Cannabis is the largest operator of private cannabis stores in Canada. It plans to bring its Meta brand to Ontario, including Ottawa. The company has a deal with Second Cup to convert some coffee shops to cannabis stores.
There’s no word yet on locations in Ottawa, but stay tuned.
MīHī
The name is a Latin word meaning “for me,” and the company behind it plans Ontario stores for “cannabis consumers who want to live an authentic life, those seeking deeper, richer life experiences.” Officials are interested in the Ottawa area, according to a spokesman for Blackshire Capital Corp., which is pouring $25 million into launching the chain. No details yet, though.
FIRE & FLOWER
This company now opening stores in Western Canada has plans to expand into Ontario. It’s unclear how the plans will be affected by provincial rules that disqualify retail store applicants that are more than 9.9-per-cent owned or controlled by cannabis growers. Several growers have invested in Fire & Flower, including Gatineau’s Hero.
Fire & Flower released a statement saying it is “working to meet the requirements before the submission deadline and is monitoring the evolving guidelines closely.”
NOVA
It’s unclear if this western Canadian cannabis chain operated by the huge liquor distributor Alcanna will move into Ontario as originally planned. Alcanna is also affected by the 9.9-per-cent ownership rule because the company is 25-per-cent owned by Aurora, one of the country’s largest cannabis growers.
Alcanna is weighing its options, said a spokesperson.
It’s just like if I treat myself to a latte in the afternoon … it’s a little thing I’m doing for myself to make myself feel a little bit better.