Pandemic frustrates pot retailers
Browsing for bud online has become a part of the physical-distancing routine among private cannabis retailers.
Retailers such as Newleaf Cannabis allow customers to choose their purchase online and place an order before going to their closest outlet for pickup and pay. Newleaf also has tips for buyers. “When paying, use tap for debit and credit cards versus cash, and don’t share joints, pipes or bongs,” advises the company.
But retailers are still too limited by Alberta government restrictions, said Nathan Mison, chairman of the Alberta Cannabis Council, which represents some retailers and licensed producers.
While provinces such as Ontario allow online payment and curbside cannabis delivery, Alberta does not, he said.
“Some of the other provinces had been laggards but I’d say Alberta has now fallen behind in cannabis policy,” said Mison, who notes black-market sellers routinely offer home delivery.
“We don’t see any policy (changes) and cannabis retailers are further unable to compete with the bad actors.”
The province’s cannabis excise and vaping taxes are among the highest in the country, he said, further harming the industry’s competitiveness, as do producers’ municipal tax regimes.
But he said the province’s decision to declare the shops an essential service could have saved much of a fledgling and fragile industry still hard-pressed by illicit sellers.
“If you closed those stores I don’t think you’d get them back ... cannabis will not go away for eight weeks,” Mison said.
The government won’t be changing its policies governing cannabis sales, said Alberta Treasury and Finance spokeswoman Jerrica Goodwin.
“The measures in place protect the health and safety of Albertans and importantly ensure it is kept away from minors,” she said in a statement.
“It is also important to note that, unlike some other provinces, cannabis retailers were not required to close as a result of public health orders and have been able to continue serving customers at retail locations.”
Business hasn’t been hurt by the pandemic, say retailers, including Shawn Bali, whose Omkara Cannabis at 500 Royal Oak Dr. N.E. opened just 10 days before COVID-19 lockdowns hit other sectors.
“At first it didn’t work to our benefit, but it’s picking up and it’s only going to get better,” said Bali, standing behind a $450 Plexiglas barrier installed in front of the store’s tills to shield customers and staff.
The pandemic, he said, hasn’t halted the introduction of new product lines, adding concentrates, resins and so-called shatter versions of cannabis will be legally available later this month.
COVID-19 also hasn’t stopped regulator Alberta Gaming, Liquor and Cannabis from green-lighting new stores, which now number 454 — by far the most in the country.
The AGLC’S online sales have remained much the same as they were before the COVID-19 emergency, said spokeswoman Heather Holmen.
Cannabis sales spiked in the first few weeks of the pandemic lockdown as customers feared the stores would soon follow other closures, said James Burns, CEO of Alcanna, which operates 30 Nova Cannabis stores in Alberta.
But that’s fallen back to a slight uptick over last year, though consumer patterns have adapted to more stay-at-home realities, he said.
“Monday’s (sales are) the same as Saturdays now,” Burns said.
And the industry says it’s overcome some of the stigma attached to them: Ottawa was persuaded to include cannabis firms in its business credit availability program for support during the pandemic.