High wholesale pot prices will hobble retailers, fuel black market, says prospective cannabis retailer

Tight profit margins will quickly weed out many cannabis retailers and benefit black marketers, a prospective pot store owner says.

And an Alberta Gaming Liquor Cannabis (AGLC) fact sheet for retailers states black market pressures and start-up costs could mean legal pot stores might not be profitable for two years.

An entrepreneur, whose company hopes to open stores throughout the province, said government and marijuana producers will claim so much of the revenue it’ll squeeze all but the largest operators, giving  illicit dealers freer reign.

“There’s no pie left over … there’s going to be a lot of problems,” said the man, who wouldn’t give his name out of fear of his store applications being rejected.

“The black market will run the streets, there’ll be no stopping it.”

Even so, he considers himself “pro-legalization” and said he’s in a good place financially to innovate and make a go of Alberta’s market.

“People are looking to me

... read more at: https://calgaryherald.com/cannabis/cannabis-business/high-wholesale-pot-prices-will-hobble-retailers-fuel-black-market-says-prospective-cannabis-retailer