Ontario Malls will welcome new cannabis deals

Some major shopping malls in Ontario will be welcoming new cannabis stores soon. This could open a new chapter for the wider acceptance of cannabis in Canada.

Currently, most cannabis dispensaries and chains are in more discreet places like a mall or on the street. In comparison, shopping malls are great meeting places for the public, and pharmacies are usually not found there. There are a few exceptions like the Aurora Cannabis store on West Edmonton Mall. But for the most part, you won’t find cannabis stores generally in mainstream areas.

So what can Ontarians expect?

Shopping center landlords are now more open to opening cannabis stores in their property. For example, Cadillac Fairview, one of the largest commercial rental companies in Ontario, will enable Tokyo Smoke and Fika to open new locations in its shopping malls. What exactly made this decision? For one thing, the cannabis sector has grown steadily since legalization. Even during the pandemic, the industry saw upward growth despite the economic downturn across Canada. In addition, the stigmatizations surrounding cannabis are slowly changing, and cannabis stores opening in large public spaces are a reflection of these changes.

With new opportunities come new challenges

Moving to larger public spaces is not necessarily easy. In general, leases for large shopping centers cost more than anywhere else. As big brands expand their businesses, they need to make sure they can keep up with costs. Also, these stores need to take logistics into account in order to attract customers to the shopping malls. As centralized public spaces, shopping malls attract all types of visitors. Some may come with the sole purpose of buying while others have other motivations. Because of this, success could depend on the store’s ability to attract visitors who are interested, but not necessarily interested, in purchasing cannabis products.

At the same time, the same challenges can offer new opportunities and rewards. With the number of entries and exits per day, shopping centers are great for increasing brand awareness. And with more visibility, these companies could achieve new demographics. Of course, as mentioned earlier, reaching these audiences depends on how the stores advertise themselves. But if this is successful we can see cannabis stores open in more and more places.

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