Canada: Private cannabis businesses worried B.C. government stores operating at a loss

B.C. cannabis retailers are worried that the provincial government’s cannabis stores are operating at a loss.

The private industry said it is already facing several challenges in turning a profit, and competing with the B.C. government for customers is just another hurdle that is possibly holding them back.

“When you have control of the wholesale distribution and you have retail stores, you have an advantage. And throw on top of that the fact (the government doesn’t) have to publish (its) financials,” Ehren Richardson, a co-owner of Sunrise Cannabis, said.

“It is very difficult. Typically, (the province) undercuts all the small, independently-owned retailers to try and gain market share. When you are not accountable for your financial performance, you can get away with it.”

The government does not disclose retail sales, or the costs, associated with running retail operations, which means taxpayers have no idea if the stores are profitable.

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Private cannabis businesses worried B.C. government stores operating at a loss