Talking theoretically, legalization of cannabis should bring an amazing business opportunity for head shops located across Canada. However, some shop owners selling weed accessories fear that legalization would hurt their business with future legal cannabis stores preparing to sell bongs, pipes and vaporizers along with CBD itself. Aaron Switzer from Happy Dayz chain of these shops was stunned to hear that the Ontario Cannabis Store plans selling marijuana and says we will see a highly dramatic change in smoke shops with the success of this government monopoly. Switzer expects that legalization will encourage new users including those that never smoked in their life and would prefer using accessories like vaporizers.
The Canadian Federation of Independent Business would represent a number of head shops throughout the country, mainly in Ontario. The senior policy analyst, Ryan Mallough said that they would call for ‘Back Off and Step Out’ wherever the government encroaches on the existing market as it is unfair for the existing small business owners. He also said that CFIB members producing weed accessories are also concerned about their business’ future post-legalization. They feel the pressure of having to select between a government model which would be the only game after a couple of years or ignoring it and staying with the retailers who would be forced out in coming future.
The Ontario Cannabis Store, in an April Call, asked submissions for CBD accessories like rolling papers, bongs and pipes, trays, filters, grinders, lighters, storage, cleaning, vaporizers, indoor grow tools and weighing scales. Just like weed suppliers, the producers of cannabis accessories who supply to the Ontario stores will be required to possess general liability insurance worth $5 million and a $15 million worth recall insurance policy.
One of the reasons the government operated store wants to have such a huge number of cannabis accessories is filling up their stores. Owners of long-standing stores in Toronto believe that weed sold at such locations will be locked behind counters and not available for seeing or smelling to customers. They think these stores don’t realize cannabis market conditions. They don’t know how weed consumers purchase products, what drives the purchase and more and this is why they are suspected to fail. They should sell few additional things at a cash counter and not turn the stores into a head shops. Private businesses should be allowed to continue what they have always been doing.
There are many smoking boutiques operating in Quebec since the 1980s. The cannabis retail monopoly in Quebec plans to sell accessories which are a minor annoyance for these small businesses. They store owners consider it a shame to be closed down by the government. It is definitely a concern and the only thing business owners can do is doing the best to provide a solid offering which keeps customers coming to them.
It is not just the government-owned stores that concern these shop owners. Some store owners are afraid their business would be hurt by private sector weed shops. To compete with the new stores opening up after legalization, visit website where small businesses should be flexible enough to face the future scenario.