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Feb. 25 | Benchmarks Update

NOTE: Below is the first in a weekly series of benchmarks provided by the team at Cannabis Benchmarks®. As always, we appreciate your feedback.


Expansion of the number of brick-and-mortar stores has been the key driver behind cannabis sales growth in Canada.

Despite the apparent convenience of purchasing from online stores, which are run by the provinces, expansion of physical retailers has corresponded with a significant drop in online sales' share of total cannabis revenue.

The most recent data available shows online sales accounting for only 6% of all retail revenue, down from 44% at the start of legalization when brick-and-mortar shops were scarce.

Given that Ontario, Canada's most populous province, is still expanding its relatively small physical retail footprint, the downward trend on online sales as a proportion of the total is projected to continue. This, and other factors, could eventually lead to the privatization of the provincial-run online outlets.

Source: Canada Cannabis Spot Index, Cannabis Benchmarks

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