Early on March 7, Aurora Cannabis (ACB) provided a retail update through its investment in Choom Holdings. In the press release, Aurora Cannabis stated that Choom has completed ~17 retail locations in Western Canada. Choom has eight more retail locations in the construction pipeline.
Market demand size
Ontario, which is a big market for cannabis players (HMMJ) including Canopy Growth (WEED), HEXO (HEXO), and Aphria (APHA), will likely be key to the retail strategy. Ontario shifted its model to allows private players to operate retail locations in the province.
In the press release, Aurora Cannabis stated that Choom will also expand and open locations in Ontario. Chris Bogart, Choom’s CEO, said, “With the strong support provided by Aurora, we’ve accelerated our growth initiatives, resulting in the rapid development of our retail footprint across Canada.” Bogart put a value of more than $4 billion on the cannabis demand in Canada.
Retail will be interesting to watch for cannabis players. With so many companies developing an array of brands called SKUs, customers will have a wide selection. The race is to capture customers early is intense in order to become the first mover in the cannabis retail space. Aurora Cannabis was trading almost 2.5% lower in the early morning session.
Read What Are Bernie Sanders’ Views on Marijuana Legalization? to learn more.