MJ Biz reports
As far as Chris Jones is concerned, sometimes you have to go small to make it big.
The veteran marijuana retail operator is wagering that small, convenience-style locations are the key to sustainable retail profitability in Ontario, the largest recreational cannabis market in Canada.
Jones’ latest marijuana retailer, Cannabis Xpress, plans to open its first store in the Toronto suburb of Brampton in early April.
The space will have a shop floor measuring only 80 square feet – roughly the size of two king mattresses laid side-by-side – and no more than two employees.
“The concept for this new round of stores is just keeping the locations very, very small and efficient,” said Jones, president of Cannabis Xpress and founder and former president of Star Buds Cannabis Co. in Ontario.
Additionally, Jones’ business plan involves:
- Initial openings in small and medium-sized Ontario markets, avoiding clusters of competing stores in urban cores.
- A limited inventory of cannabis products at competitive prices.
- Keeping initial build-out costs and operating costs low.
“That’s really the key to my business model, is just managing costs,” Jones said.
“If I can do that, then, in turn, I can still be profitable while undercutting all of the competitor stores.”
Small, convenient, low-cost stores
Jones’ plan for Cannabis Xpress involves small, convenient locations, initially targeting smaller local markets with less competition from existing stores.
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