The Société Québécoise du Cannabis (SQDC), the state-owned company that sells cannabis in Quebec, has announced that it will permanently close one of its branches in Montreal, laying off 11 workers in the process. This is the first time that the SQDC has closed a store since it started operating in 2018.
Reasons for the closure
According to the SQDC, the decision to close the branch at Plaza Saint-Hubert was a “business decision,” even though the company said that “things are going well” overall. The branch will close its doors to customers on March 2, and the workers will be out of a job by March 23.
However, the president of the Canadian Union of Public Employees (CUPE), David Clément, believes that the closure was a retaliation measure by the SQDC against the union, which had been on strike for 18 months in several branches. The strike ended in January 2024, after the union and the SQDC reached a tentative agreement on wages and working conditions.
Clément said that the Plaza Saint-Hubert branch was one of the most active and profitable ones and that the closure was a “slap in the face” to the workers who fought for their rights. He also said that the union would contest the decision and demand that the SQDC rehire the workers or relocate them to other branches.
Impact on the cannabis market
The closure of the Plaza Saint-Hubert branch will reduce the number of SQDC stores in Montreal from 15 to 14, and the number of stores in Quebec from 98 to 97. The SQDC said that it will continue to open new stores in other regions of the province and that it will focus on expanding its online sales and delivery services.
The SQDC also said that it will increase its product offerings and quality to attract more customers and compete with the illegal market. The SQDC’s most recent quarterly report, released in November 2023, showed that the company had sold $151.7 million worth of cannabis in the second quarter of 2023, generating $61.4 million in revenues and taxes for the province.
The SQDC’s main competitor, the Ontario Cannabis Store (OCS), which operates online and through private retailers, reported $216.8 million in sales and $66.4 million in revenues and taxes for the same period. The OCS has 1,200 authorized retail stores in Ontario, compared to the SQDC’s 97.
Reaction from the public
The news of the SQDC’s store closure has sparked mixed reactions from the public. Some customers said that they were disappointed and surprised by the decision, as they liked the location and the service of the branch. They also said that they were worried about the availability and accessibility of cannabis in the area, especially for medical users.
Other customers said that they were indifferent or supportive of the closure, as they preferred to buy cannabis online or from other sources. They also said that they were not satisfied with the prices, quality, and variety of the products offered by the SQDC and that they hoped that the company would improve its performance and customer service.