• December 05, 2020
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  • How Cannabis Dispensaries Can Avoid an Extinction Event

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    Dispensaries are like dinosaurs. I predict they will meet their extinction when they become replaced by older, bigger, and more powerful dinosaurs: drug stores.

    To understand the basis for this prediction, we must analyze the global cannabis movement outside the United States. One must also believe cannabis is medicine despite its prevalent recreational use, which is known to only a relatively small percentage of the world’s population.

    Canadian medical marijuana market

    Although young, the Canadian market is one of the most advanced markets outside the U.S. In October 2018, Walmart Canada announced it is exploring distributing cannabis. If Walmart decides to take the leap, Recall, IDA, Guardian, and Drug Mart—Canada’s largest pharmacy chains—likely will follow suit in order to compete with the international retail behemoth. The massive distribution network already in place and serving 99 percent of the Canadian population, coupled with political and financial lobbying power should the drugstores wish to distribute cannabis, would eliminate the need for dispensaries.

    Reaching the level of efficiency pharmacy chains’ infrastructures already offer would require dispensaries spend tens of billions of dollars over decades. Even large dispensary chains would not be able to compete due to operating expenses needed to maintain their establishments. Large dispensaries would, at best, be considered mom-and-pop and boutique shops.

    Read about the other global markets in the full article, here: https://mgretailer.com/business/retail-merchandise/how-cannabis-dispensaries-can-avoid-an-extinction-event/?mc_cid=673358dcbc&mc_eid=33e049eacb&doing_wp_cron=1604488525.6609520912170410156250

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