4 Companies Shaping the Cannabis Retail Market

VANCOUVER, British Columbia, Feb. 25, 2019 (GLOBE NEWSWIRE) -- The cannabis retail market remains one of marijuana's biggest unknowns. Companies have been working on different approaches when it comes to developing stores or products that will appeal to consumers. It will take time before we see which strategies prove to be successful and which will fall flat.

Here is an overview of four cannabis companies and their very different approaches for gaining market share in the retail space.

Westleaf Inc. (WL.V) (WSLFF): Set to Become of Canada’s Largest Premium Cannabis Retailers

If there's one thing we know from the retail cannabis market in the U.S., it's that experience is extremely important to the consumer. With Canada's retail landscape still in its infancy, companies are actively pursuing opportunities to be unique.

Westleaf Inc. is set to become one of Canada’s largest premium marijuana retailers and has taken an entirely different approach than every cannabis retailer in the U.S. Their store concept, called Prairie Records, looks very much like record stores. But instead of selling music, they sell cannabis.

Prairie Records is going to stand out from our competitors as something distinct and will provide the customer with a unique and engaging cannabis retail experience

- Adam Coates, Chief Commercial Officer of Westleaf

To say that Prairie Records will be unique is putting it lightly. This is how the company explains the purchase process:

Walking to the counter to make a purchase, the cashier takes away the record sleeve and, in exchange, hands back… not the record, but its miniature version, and also a cannabis product, the strain’s profile matching the description of the selected music label.

In an industry where there's lots of competition, differentiation is important, and Westleaf is banking that its music-focused stores will pay off. The records themselves could also be used as a branding tool for LP's and their products - which is important when you consider the restrictive branding requirements imposed by the Canadian government on packaging.

The Company recently opened its first Prairie Records location in Warman, Saskatchewan, but that's only the start. Westleaf has much bigger plans and is expected to open around 50 location just in Western Canada by the end of next year. Like MedMen in the U.S., Westleaf's Prairie Records stores are being placed in key areas that have high traffic and are considered "premium retail locations."

Time will tell how successful the model is, but given its ambitious plans to become one of the country's largest retailers, we'll know in a hurry just how well its strategy works.

Fire & Flower Holdings Corp (TSX-V:FAF): A Strong Start

Fire & Flower Holdings Corp is another retailer that, back in January, already reached CAD $10 million in sales since the recreational market opened for business in October. Also focused on Western Canada, the Company had five stores opened out of the gate and has continued to add to that tally since then. Given the struggles we've seen in the retail landscape since legalization, it's definitely been a good start for Fire & Flower.

This significant sales milestone demonstrates a strong and growing consumer demand for recreational cannabis and delivers on Fire & Flower’s commitment to capture significant market share in the retail cannabis category

- Trevor Fencott, CEO of Fire & Flower

Fire & Flower has secured a total of 20 store locations (including accessory shops), with 18 in Albert and two in Saskatchewan. Recently, however, it announced that it had secured agreements with two successful applicants that were among the 25 lottery winners in Ontario that could apply for licenses in the province. Fire & Flower would earn consulting and licensing fees under the agreement and after the end of the lottery process would be able to buy the interest in the locations as well.

This shows a lot of trust by the lottery winners in The Company's abilities, as noted by Fencott, who says that the agreements:

“…Represent a strong vote of confidence in Fire & Flower’s best-in-class expertise to assist these applicants to develop and operate a highly regulated business within an aggressive timeline.”

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