Last updated: March 17, 2020

Disclaimer: This guide is for information purposes only, and should should not be considered legal advice.



Canadian Cannabis Retail Location Guide



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Retailers know a location is key to the success of their business, and it’s no different for cannabis retailers. However, the challenge is whether you can find that great location that also fits with the myriad of rules set out by both the province and that particular municipality.

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So, how do you find that great location with the right demographic that also meets those requirements and limits? PiinPoint takes the guesswork out of that decision and makes it easy for you to find the right location.

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There are a few things aspiring store operators need to know first; this is complicated retail. Yes, Canada legalized cannabis in October 2018, but the Cannabis Act gives provinces the ability to determine the method of distribution and sales. Which means each province has its own rules. In some, you can’t even open a retail location, the province has a monopoly. In some, the government is the only supplier as well as the only retailer allowed. On top of that, some provinces have given municipalities the authority to set their own rules, some having opted out of having retail cannabis stories entirely.

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These regulations may restrict where a retailer can open a new brick-and-mortar location, what products they can sell and how they can promote their business. Calgary recently rejected 105 proposals for cannabis retail stores because they were too close to schools, daycares or other cannabis stores.

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The regulatory barriers are certainly not easily defined. What is clear though, is that there are not enough brick-and-mortar stores to meet consumer demand in Canada. Currently, there is about 860 cannabis retail stores open in Canada, which is about 2.8 retail location for every 100,000 Canadians over the age of 18. In comparison, there’s 58.5 alcohol retailer for every 100,000 people over the age of 18. In other words, lots of room for expansion. Not to mention that an in-person experience tends to be the preferred mode of purchase; many cannabis consumers are wary of buying online given the traceability of e-commerce transactions. Legal doesn’t mean all stigma has been erased about cannabis.

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So, to help cannabis store operators keep all these rules straight, we’ve compiled this guide to help you out.

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Let’s start with which provinces allow private retailers and those that don’t.



105 cannabis retail applications rejected in Calgary because they were too close to schools, daycares or other cannabis retailers. Where can a private retailer operate a cannabis store in Canada?

These are the provinces that are open to retailer-owned cannabis stores or have a combination of government-owned and privately-owned stores.

Ontario

Alberta

British Columbia

Saskatchewan

Manitoba

Newfoundland and Labrador

What are the details and nuances that apply to each province?

Each province has its own set of rules about where retail cannabis stores can be located, however, there are a few commonalities.

Most provinces don’t want cannabis stores close to schools, daycares or health care facilities. They want stores to be self-contained, don’t want then to have outdoor spaces, or have a drive-thru. A lot of that is common sense, but the details change for each province and sometimes each municipality. So let’s take a look at how it works, starting with those provinces that allow private retailers.



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Ontario Cannabis Retail Rules

How cannabis retailers operate in Ontario The Ontario Cannabis Retail Corp. which operates under the name Ontario Cannabis Store operates the only legal online marijuana sales for the province and serves as a wholesale distribution to licensed privately operated retailers.

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The Alcohol and Gaming Commission of Ontario (AGCO) regulates and licenses privately run recreational cannabis stores.



Licensed cannabis producers are allowed to own or control up to 25% of a cannabis retailer. A single cannabis operator may own or operate up to 10 stores until September 2020, when the cap increases to a maximum of 30 stores, and increases again to 75 stores in September 2021.

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In Ontario, 73 municipalities out of 413 opted out of allowing cannabis retail stores to operate in their municipalities.undefined

A few large municipalities have opted out including:

Markham

Mississauga

Newmarket

Oakville

Pickering

Richmound Hill

Vaughn

Whitby Current number of cannabis stores in Ontario: Ontario is the most populous province, but not when it comes to cannabis stores. 75 stores licenses were issues via two lotteries. Currently, there are 45 stores that are open, which amounts to 0.4 stores per 100,000 residents over the age of 18. For comparison, there are 24 alcohol retailers for every 100,000 Ontario residents over the age of 18.



This is set to change on January 6, 2020, when AGCO will begin accepting Retail Operator License applications for anyone. This process will replace the current retail lottery system, but will maintain the restriction on total number of stores open in Ontario until March 2, 2020.



The AGCO will begin accepting applications for Retail Store Authorizations on March 2, 2020 and expects to issue up to 20 authorizations per month after that date.



There are currently 111 stores with applications pending.



Specific cannabis retail location requirements for Ontario: It can’t be within 150 metres from the property line of a school.

Must be enclosed by walls separating it from other commercial businesses or activities.

It can’t be entered from or passed through in order to access any other commercial establishment or activity, except for a common area of an enclosed shopping mall.

It can’t include an outdoor area.

All doors must be secure.

Cannabis and accessories can not be visible from outside the store.

The store must have a clear location for a sign outside the business.

The public must not have access to locations where cannabis is stored or received.

The store must have an HD 24/7 video surveillance system, with a minimum of 30-day backup, that records the entrances, exits, point of sale, receiving area, sales floor, cannabis storage area. Resources for Ontario cannabis retailers: Cannabis Licence Act, 2018



Cannabis Licence Act, 2018 Regulations



Registrar's Standards for Cannabis Retail Stores



Apply for a Cannabis retail store licence



Cannabis Retail Buffer Zones for Ontario - Free Guide



PiinPoint Cannabis retail location analytics - Free Trial



Alberta Cannabis Retail Rules

How cannabis retailers operate in Alberta The Alberta Gaming and Liquor Commission (AGLC) handles distribution, oversight and licensing. It is also the regulator for privately run recreational cannabis stores. Retail stores are privately operated while the government operates online sales.



Current number of cannabis stores in Alberta: Alberta currently has 431 cannabis retail stores or 12.7 stores for every 100,000 adults over the age of 18 in Alberta.

There is no cap on the number of licenses for stores.

Specific cannabis retail location requirements for Alberta: Each municipality may have different rules about where a cannabis retail store can open, and you may need municipal approval before getting a license.

It can’t be within 100 meters of a provincial health care facility, school or where a school will be built in the future.

The location needs a separate entrance and can’t be accessed from another business.

A store must-have, a sales floor, receiving area for product, secure storage area.

Cannabis and accessories can not be visible from outside the store.

No drive-thru.

Can’t sell alcohol or tobacco at the same location.

The store must have a HD 24/7 video surveillance system, with a minimum of 60-day backup, that records the entrances, exits, staff area, point of sale, receiving area, sales floor, cannabis storage area.

There must be a professionally installed and moistened alarm system, with a panic button at the point of sale.

All doors must be secure.

Clear signage with the business name must be displayed at all doors that the public can access.

You need a signed lease or a certificate of title to obtain a license.

Owners with a 10% stake or more need to pass a background check.

You must be incorporated in Alberta and be separate from any other businesses with a sole focus on retail. Resources for Alberta cannabis retailers: Gaming, Liquor and Cannabis Act, 2018



Gaming, Liquor and Cannabis Regulation, 2018



Retail Cannabis store handbook



Apply for a Cannabis retail store licence



Cannabis Retail Buffer Zones for Alberta - Free Guide



PiinPoint Cannabis retail location analytics - Free Trial



Saskatchewan Cannabis Retail Rules

How cannabis retailers operate in Saskatchewan The Saskatchewan Liquor and Gaming Authority (SLGA) control authorities regulate private cannabis stores.

Each municipality can sets its own rules regarding if and where a retail location can open.

Current number of cannabis stores in Saskatchewan There are currently 41 stores open out of 51 retail permits across 32 municipalities and First Nation communities. There’s 4.5 store for every 100,000 adults.

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On October 29, 2019, the Saskatchewan government announced they would remove the cap on cannabis retail permits. This would be a gradual process, starting in April 2020, when the SLGA will start to accept applications for stores that are hoping to operate communities with a population of less than 2,500, or communities that were previously eligible for permits but did not proceed. Starting in September, 2020 SLGA will begin accepting applications for stores in all communities in the province.

Specific cannabis retail location requirements for Saskatchewan Municipalities have the ability to set specific location rules, including opt-in out of allowing them to operate in their communities.

Some municipalities restrict locations based on their proximity to other cannabis stores, schools, daycare or other particular facilities.

Must have a standalone storefront.

There must be a professionally installed and moistened alarm system, with a panic button at the point of sale.

The store must have a HD 24/7 video surveillance system, with a minimum of 60-day backup, that records the entrances, exits, staff area, point of sale, receiving area, sales floor, cannabis storage area.

All doors must be secure.

The store must have a secure storage room or safe. Resources for Saskatchewan cannabis retailers: The Cannabis Control (Saskatchewan) Act, 2018



The Cannabis Control (Saskatchewan) Regulations, 2018



Cannabis Retail Buffer Zones for Saskatchewan - Free Guide



PiinPoint Cannabis retail location analytics - Free Trial



Newfoundland and Labrador Cannabis Retail Rules

How cannabis retailers operate in Newfoundland and Labrador The Newfoundland and Labrador Liquor Corp. (NLC) regulates private retail stores and operates online sales.

Current number of cannabis stores in Newfoundland and Labrador There are 25 stores open currently. The NLC will decide if additional locations will be allowed to open in the future.

There’s 5.8 store for every 100,000 adults.

Specific cannabis retail location requirements for Newfoundland and Labrador There are 4 different licensing tiers

Tier 1: stand-alone store, that is not connected to any other businesses

Tier 2: stand-alone store within another retail establishment that is not a cannabis store, pharmacy or bar

Tier 3: a business within another retail establishment that is not a pharmacy or bar and has a separate point of sale system

Tier 4: sales of cannabis occurs at the same counter that is used by the retail establishment that is not a pharmacy or bar

All store areas must be under video surveillance and have a security system.

The store must have a secure storage room or safe. Resources for Newfoundland and Labrador cannabis retailers: Newfoundland and Labrador Cannabis Regulations, 2018



Control and Sale of Cannabis Act, 2018



Cannabis Retail Buffer Zones for Newfoundland & Labrador - Free Guide



PiinPoint Cannabis retail location analytics - Free Trial



What Canadian Provinces have government-controlled monopolies over cannabis stores? These provinces have decided not to have private retailers for now.

New Brunswick

Quebec

Nova Scotia



Prince Edward Island



New Brunswick Cannabis Retail Rules

How cannabis retailers operate in New Brunswick

The Cannabis NB is the government-owned retailer for stores and online, and the only legal retailer.

Current number of cannabis stores in New Brunswick There are currently 20 stores, 3.1 store for every 100,000 adults.



Quebec Cannabis Retail Rules

How cannabis retailers operate in Quebec

Société québécoise du cannabis (SQDC) is the only retailer who can sell cannabis in stores or online and it is owned by the government.

Current number of cannabis stores in Quebec There are currently 40 stores, 0.6 store for every 100,000 adults.



Nova Scotia Cannabis Retail Rules

How cannabis retailers operate in Nova Scotia

The government-owned Nova Scotia Liquor Corp. is the only authorized retailer who can sell cannabis in stores or online.

Current number of cannabis stores in Nova Scotia There are currently 12 stores. There’s 1.5 store for every 100,000 adults.



Prince Edward Island Cannabis Retail Rules

How cannabis retailers operate in Prince Edward Island

Government-owned retailer PEI Cannabis is the only authorized retailer who can sell cannabis in stores or online.

Current number of cannabis stores in PEI There are currently 4 stores, or 3.1 store for every 100,000 adults.

