WINGHAM – After three months of preparation, on Feb. 17 CANNABIS XPRESS opened of its newest stores in Wingham. The Wingham Advance Times interviewed owner Chris Jones about his career in the cannabis industry and the process of opening the store in Wingham.
Wingham Advance Times (WAT): Could you tell me a little bit about yourself and your work experience?
Chris Jones (CJ): I’ve worked in the cannabis industry for several years after I finished my MBA. I started off at a public company called Origin House in Toronto, where we grew from eight people to over 50. My focus was finding companies in California to acquire, then I would meet with them, and negotiate the terms, then work with our lawyers to close the deal. We acquired six companies and invested in about eight while I was there, then our company was acquired by Cresco Labs (one of the largest US cannabis companies) at the time the deal was announced the value was $1.1 billion. I then decided to apply for licences to open up retail stores in Ontario as a side project when the government announced the first come first serve process. I was already familiar with the rules and licensing people from working on a previous cannabis lottery deal. I applied for the first licence and got it very quickly, then raised $1 million and opened up five of the first 200 stores in the province; these stores had a run rate of approximately $15 million. I then left my corporate job to focus on the retail business, and ended up selling my ownership back to the original investors because I saw the retail landscape changing rapidly and I wanted to stay ahead of everyone else. I also am a professor at George Brown College, where I teach a class called “Cannabis Business Strategy.” Finally, I’m a professor at LIM College in New York, where I teach two undergraduate courses and one graduate-level course, which are The Business of Cannabis Cultivation, The Business of Cannabis Cultivation and Manufacturing, and The Business of Cannabis Supply Chain.
I knew how quickly Ontario would be saturated with retail stores, and after seeing how most customers shop, I knew we did not need a large store format or needed to spend a million dollars to open up a fancy store. I created CANNABIS XPRESS with the goal of having a large retail footprint across Ontario, but a quick/convenient format, small square footage, and low operating costs and capital expenditure. The infrastructure and model is now proven. We have 8 stores open with 3 more opening in the next 2 months, and we have a goal of having 20 stores by the end of the year. What makes us different is that we keep it simple, and by doing that – we save a lot of time, and money, and we can then pass those savings onto customers. We sell the same products as the big chains, but for the lowest prices.
WAT: When did you begin the process of opening CANNABIS XPRESS in Wingham?
CJ: I started the process of opening up Wingham about three months ago, and we opened on Feb. 17.
WAT: Could you also tell me about the process in order to open a cannabis store? I am told it is a complicated process to go through.
CJ: I’ve opened up and received licences on 15+ stores, so the process for me is pretty straightforward and easy. I’ve been able to open up a store from start to finish in a month (if it is in the right condition). The process can be complicated for new entrants and anyone who is not familiar with a highly regulated industry, or retail in general. In order to open up a store, you need three licences: the Cannabis Retail Operator Licence (ROL), a Cannabis Retail Authorization Licence (RML), and a Cannabis Retail Managers Licence (RML). You then fill out online application forms, pay a fee, and find a location to lease that meets all of the government criteria. Once that is submitted, you pass a series of inspections with the Alcohol and Gaming Commission of Ontario (AGCO), and you have to post information on the storefront for 15 days to allow the public to submit questions or complaints about the proposed location. If you receive complaints, you address them and move to the final stage of getting the licence. Once everything is passed, you receive a licence, and then you submit the licence to the Ontario Cannabis Store (OCS), which is the only legal distributor of cannabis products in the province. Once you are done with an onboarding process with the OCS, you can submit an order, receive it at the store, and start selling!
WAT: What made you want to open a store in Wingham?
CJ: I chose to open a store in Wingham for several reasons:
– most of my stores are in small-medium sized towns, and Wingham is a small town;
– I found an ideal location with low rent, downtown street-front signage, and was in fantastic shape; and
– after spending several weekends in the city and speaking to locals, I realized that it was a very underserved market for legal cannabis products and that they would welcome us if we opened.
WAT: Could you tell me about what this store will offer in regards to products and or services?
CJ: We have a wide selection of cannabis products and accessories at our Wingham location. We’ve been in this business for so long that we understand what products customers want, but we also listen to them and adjust our assortment for the local market. We currently sell:
– accessories (bongs, vapes, lighters, rolling papers, pipes, vaporizers);
– flower;
– pre-rolls;
– edibles (chocolates, gummies, beverages, etc.);
– topicals;
– tinctures;
– capsules; and
– extracts/concentrates.
The most important part of what we sell is that we are the lowest priced store around, and since all stores buy from the OCS for the same price, we decided to sell our products for less than any nearby store. We also pivoted prior to opening the store and decided that we would make it a curbside pick-up only location. Customers can place orders online through our website at: www.cannabis-xpress.com, click Wingham store, add products to their cart and check out. Then, they can meet our staff at the back of the store where all orders are ready within minutes. By making this a pick-up-only location, the cost of operations are significantly less than any other store, and we can then pass those savings onto our customers.
