(File photo/CKOM News Staff)

By Brent Bosker

Sales Restrictions

Sask. cannabis retailer calls relaxed rules for legal pot sales premature

Oct 31, 2019 | 11:24 AM

A Prince Albert cannabis retailer says loosening the restrictions on legal sales is a premature move that won’t lead to more customers.

On Tuesday, the government announced it would begin accepting applications in April of next year for cannabis locations in communities with populations under 2,500 people.

Saskatchewan Liquor and Gaming Authority Minister Gene Makowsky said giving people more choice would help deter the black market.

Jim Southam runs Prairie Cannabis in Prince Albert, and is president of the new Weed Pool Cannabis Co-operative.

Southam believes there’s room for more competition in the legal cannabis market, just not right now.

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“We’re struggling,” he said. “We’re not the millionaires everyone thought we were going to be.

“Everybody kind of agrees that we only have about maybe 10 or 15 per cent of total cannabis sales. The rest is still black market.”

Southam says it will be difficult for new stores, especially in smaller communities, to survive without more customers.

“In order to win over the black market, we have to bring black market growers and industry players into the legal market,” he said.

Southam said retailers also are up against illegal sellers with a loyal customer base who can sell for less.

He points out an oversupply in the market forecasted for January could help even the playing field.

“That’s good in my opinion because prices will come down,” Southam said. “They have started, but they still have quite a bit of room to go yet.”