Retailers have been left either struggling with a surge in demand for online ordering and delivery or ruing their lack of a web shop

Cannabis retailers in Ontario exhaled a collective sigh of relief earlier this week when the provincial government threw them a lifeline by finally — albeit temporarily — allowing them to offer online sales after shutting down their physical storefronts last weekend.

Previously, only the government-owned Ontario Cannabis Store was allowed to sell cannabis online, a “silly and misguided” policy, according to the Consumer Choice Centre, a consumer advocacy group. Now, for the time being, cannabis stores can offer delivery and curbside pickup.

Curbside pickup also seems to be the mechanism of choice for other retailers, including Canadian Tire, whose website urges customers to phone in orders after its brick-and-mortar presence, too, lost its “essential” business designation on April 5.

Taking orders by phone and getting customers to pick them up them up may seem a strange way to operate more than than two decades into the e-commerce revolution, but the coronavirus crisis has many retailers either struggling with a surge in demand for online ordering and delivery or ruing their lack of a web shop since most people are trying to stay home and practice social distancing measures as much as possible.

Almost three in 10 people are shopping for things online that they normally would have bought in-store, according to a survey of more than 30,000 Canadians by Chicago-based market research firm Numerator.

Even the biggest, most competent e-commerce players such as Amazon.com Inc. have been forced to make adjustments.

“They’re so backed up from an increase in demand, if you’re buying non-essential products, they’re not shipping that out to you for, like, a month,” said Ygal Arounian, an equity analyst at Wedbush Securities covering e-commerce companies.

Many smaller retailers, of course, still don’t have a web shop, often due to either the cost or logistics of setting one up, a shortcoming the coronavirus-related downturn has only emphasized.

To that end, the City of Toronto and the Toronto Association of Business Improvement Areas is offering a program called Digital Main Street to help businesses develop their online footprint through one-on-one consultations.

One midtown Toronto business improvement association has created a $15,000 Digital Support Fund. The Yonge + St. Clair BIA will hand out $500 on a first-come, first-serve basis to up to 30 members to help them transition or grow an existing online presence.

But how the coronavirus-related downturn exactly affects various retailers will differ a lot, Arounian said, primarily based on what they’re selling.

For example, even though the conventional wisdom is that e-commerce activity is at an all-time high, Ottawa-based Shopify Inc. had to issue a message to investors that the global pandemic had thrown off its financial forecasts.

Arounian said Shopify’s business in the short term is likely suffering because the company serves a lot of independent merchants selling lifestyle products — makeup, clothing and watches — things that are not top priorities right now.

Investment house Piper Sandler’s biannual Taking Stock with Teens survey conducted in the United States in February and March found that spending on cosmetics had fallen 26 per cent from spring 2019, marking a 10-year survey low.

“In the near term, I think that the consumer focus has shifted completely to non-discretionary products,” Arounian said. “In the near term, we’re likely in a recession now. Ten million people in the U.S. filed for unemployment in the last two weeks, and that’s going to put some pressure on non-discretionary spend also.”

That hasn’t stopped people from shopping at Indigo Books & Music Inc., which has long had a substantial e-commerce presence, though most of its business still came from in-store purchases. Its online sales are up more than 300 per cent since its physical stores closed.

“We provide the things that will lower the stress level at home,” chief executive Heather Reisman. “I think after food, we (sell) the things that people would value at this moment. We do have educational and creative things for kids. We do have lots of things related to wellness and well-being. We are related to reading.”

She said the company has been able to easily absorb the increased online business since volumes during the Christmas period are 10 times what they are now.

“We always have a very significant surge, so we have capacity,” she said.

Reisman said the biggest constraint is taking steps to limit volume, because it’s necessary to keep workers healthy.

“We have to meter it, because we have implemented extreme social distancing in our fulfilment centres,” she said.

But not every company is handling the massive shift in consumer behaviour without hiccups.

For example, customers visiting Canadian Tire’s website on Monday were greeted with the famous red triangle and green leaf logo at the top of the page, and a plain text message that advised customers that should avoid using the site between 9 a.m. and 5 p.m., because those were the busiest times.

“Due to these unprecedented times, we are experiencing a higher than normal volume of traffic to our website. We want you to know we are here for you, and to assure you that we’re working hard to bring you the essentials you need.”

If there was a simple way to order merchandise on the site, it wasn’t immediately apparent. Instead, the company suggested customers place their orders by phone and offered a Google link to find the closest locations.

By Tuesday, the company still wasn’t accepting online orders, but the page was updated with a drop-down menu that allows customers to find store phone numbers without going to Google.

Canadian Tire did not respond to requests for comment from the Financial Post, but industry watchers have long held that the retailer is behind its peers in terms of e-commerce abilities (though Sport Chek and Mark’s, its sister banners under the Canadian Tire Corp. Ltd. umbrella, are more robust).

In some cases, companies that are heavily focused on physical-world interactions need to change on the fly. Jessie Wilkin, founder and partner at Toronto-based Pilot Coffee, said before the pandemic, the coffee maker and chain’s business was almost entirely focused on wholesale coffee sales and its eight cafes in the city.

“March 16, we closed all our retail locations. We were unsure at that point how long they would be closed for, and we immediately started seeing an increase in sales from our online orders,” she said.

“From March 16, we’ve had almost a 300 per cent increase in online orders, and probably about a 350 per cent increase in online customers, and about 10 per cent increase in our online subscriptions.”

Wilkin said Pilot has been forced to change its workflow to respond to the flood of smaller consumer orders, holding roasted beans in inventory instead of doing roast-to-order wholesale batches.

The company is also looking at expanding its delivery capabilities, because they’re having problems dealing with Canada Post and FedEx with all the disruption.

Wilkin is looking forward to reopening Pilot’s cafes once it’s safe, but she said the pandemic will likely change the business significantly.

“We’re sort of seeing an expansion into an untapped market”

Jessie Wilkin

“I believe that our customers are going to come back to our cafes, and it’s just going to take some time,” she said. “But I think as well, consumers that hadn’t previously ordered our products online or ever made coffee at home are now feeling more empowered to do so. We’re sort of seeing an expansion into an untapped market.”

Running Room Canada Inc. founder and chief executive John Stanton is thinking in a similar way. Before the pandemic, his chain of stores heavily relied on in-person shoe sales and organized running groups.

Now, he is encouraging workers and customers alike to embrace innovation by, for example, hosting virtual running events where people use smartphone apps to record solo weekend runs. The company is also trying to offer “gait analysis” of customers through FaceTime to help pick the right shoes for their stride, something they normally do in-store.

Stanton said he doesn’t know what the post-pandemic running scene will be like — will people still want to gather in big groups for event races? — but he’s confident his business can endure, because people want what it has to offer.

“I get that mental release as well as a physical release, and I don’t have that interconnection with people at a time when it’s probably not a good idea to be around a big group.” Stanton said. “I think you’re probably going to see a return to that solitary run.”

Originally published here.

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The Consumer Choice Center is the consumer advocacy group supporting lifestyle freedom, innovation, privacy, science, and consumer choice. The main policy areas we focus on are digital, mobility, lifestyle & consumer goods, and health & science.

The CCC represents consumers in over 100 countries across the globe. We closely monitor regulatory trends in Ottawa, Washington, Brussels, Geneva and other hotspots of regulation and inform and activate consumers to fight for #ConsumerChoice. Learn more at consumerchoicecenter.org

Province reverses decision on weed retailers, allowing them to stay in business to continue fight against black market

People will soon be able to pickup cannabis curbside from local licensed retailers like Bud & Sally in uptown Waterloo.

The Alcohol and Gaming Commission of Ontario has reversed its previous decision to ban cannabis retailers from operating, meaning that individual stores can now provide curbside pickup and delivery options.

“To continue the fight against the illegal cannabis market and support cannabis retail store operators and legal recreational cannabis consumers, the Government of Ontario has issued an Emergency Order to temporarily allow authorized cannabis retail stores to offer delivery and curbside pickup,” the AGCO stated in a media release on Tuesday.

“These changes are effective immediately and will last for the duration of the period of declared provincial emergency, with the possibility of extension if the government’s Emergency Order on business closures is extended.”

On March 17, Ontario Premier Doug Ford declared a state of emergency in Ontario, because of COVID-19, and ordered the closure of non-essential businesses. Authorized cannabis retail stores were initially deemed essential businesses. On April 3, a revised list was issued, further reducing the number of essential businesses, and cannabis retail stores were among those that had been ordered to close as of April 4.

John Radostits, who just opened Waterloo’s Bud & Sally in mid-March, had questioned what appeared to be a double standard, as delivery of alcohol with takeout food had been OK’d by the province and the online Ontario Cannabis Store continued to provide delivery of cannabis.

“Yes good news from the AGCO,” he said Wednesday, in an email. “We are currently working on our plan to open with the curbside pickup ASAP.

“All customers will have to visit our website www.budandsally.com and order from our full catalogue and pay in advance for all cannabis and accessories. The next step will be to come to the storefront sidewalk (32 King St. S) and we will bring the order out to them. We are currently updating our website and should be ready within the next day or so.”

Radostits said he’ll also be looking at the logistics of adding a delivery option, moving forward.

David Clement, Toronto-based North American affairs manager for the Consumer Choice Center (CCC), said the only issue with the ACGO’s announcement is that the allowance is temporary.

“Prohibiting retailers from offering delivery was always a silly and misguided policy,” said Clement.

“Once everything has returned to normal, our hope is that retailers will continue to be allowed to offer delivery options for their consumers. Allowing for retailers to deliver will help the legal market compete with the black market, which is something that everyone should be on board with.”

Originally published here.

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The Consumer Choice Center is the consumer advocacy group supporting lifestyle freedom, innovation, privacy, science, and consumer choice. The main policy areas we focus on are digital, mobility, lifestyle & consumer goods, and health & science.

The CCC represents consumers in over 100 countries across the globe. We closely monitor regulatory trends in Ottawa, Washington, Brussels, Geneva and other hotspots of regulation and inform and activate consumers to fight for #ConsumerChoice. Learn more at consumerchoicecenter.org

British Columbians should be allowed the same socially distant transaction options as other provinces

Despite reports of “click-and-collect” services coming to B.C. retail, a recent provincial policy directive still requires customers to go in-store to pay for and pick up their weed.

This new directive falls short of online sales and delivery options available in provinces including Alberta, Saskatchewan and Ontario.

Providing these options would allow B.C. residents, who currently face the country’s highest number of COVID-19 infections, to reduce non-essential physical transactions that have the potential to spread the disease.

Tuesday afternoon’s update from provincial health officer Dr. Bonnie Henry showed B.C. pulling ahead of Ontario for the first time with a total of 617 confirmed cases, compared to Ontario’s 572. For reference, the population of Ontario is nearly three times that of B.C.

International advocacy group the Consumer Choice Center, who recently called for all provinces to legalize same-day delivery, said such policies would have the added benefit of reducing illicit sales.

Currently, B.C.’s provincial wholesaler holds a monopoly on online recreational cannabis sales. “BC Cannabis Stores: the only place to shop non-medical cannabis online in BC,” reads a slogan on the homepage of its website.

Late Friday, British Columbia’s Liquor and Cannabis Regulation Branch (LCRB) authorized private cannabis retailers to offer non-medical cannabis product reservations online or by phone.

However, the guidance says that reserved products must be paid for and picked up in store.

The move comes after multiple calls from B.C. retailers for the province to allow for cannabis delivery and “click-and-collect” services that are offered in other Canadian provinces.

“It’s hard for us when we don’t have an option,” Muse Cannabis manager Frida Hallgren told Mugglehead in an interview last week. “At times like this it would have been very useful to have a delivery system.”

Unclear how product reservations support social distancing

The term click-and-collect is used to describe retail services where customers buy a product online and then come to collect it, either in-store or at the curbside.

The demand for brick-and-mortar alternatives has expanded rapidly as citizens have been asked, and now ordered, to practice social distancing measures in an effort to stop the spread of COVID-19.

With its new expanded emergency powers, the City of Vancouver can now fine businesses up to $50,000 and individuals $1,000 for violating social distancing guidelines.

It’s unclear how the LCRB’s new policy would work to decrease potentially risky social interactions if customers have to meet staff in-store to buy cannabis products.

As its explanation, the branch said no policy direction on non-medical cannabis product reservations was provided previously.

“This policy change now allows licensees to offer reservations of non-medical cannabis products available in their store to customers via their website or by telephone,” it said. “Existing requirements for licensee websites remain and licensees are prohibited from selling non-medical cannabis products online or by telephone. However, licensees may continue online sales of cannabis accessories and gift cards.”

Mugglehead reached out to the B.C. Attorney General’s office on Monday morning about why online sales are not being allowed, and is waiting for comment.

Originally published here.

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The Consumer Choice Center is the consumer advocacy group supporting lifestyle freedom, innovation, privacy, science, and consumer choice. The main policy areas we focus on are digital, mobility, lifestyle & consumer goods, and health & science.

The CCC represents consumers in over 100 countries across the globe. We closely monitor regulatory trends in Ottawa, Washington, Brussels, Geneva and other hotspots of regulation and inform and activate consumers to fight for #ConsumerChoice. Learn more at consumerchoicecenter.org

Delivery would make life easier on Canadians during coronavirus outbreak while helping stave off black market.

The Consumer Choice Center (CCC) wants the rest of Canada’s provinces to join Saskatchewan and Manitoba in allowing the same-day delivery of cannabis.

Self-described champions of lifestyle freedom and innovation, the group noted that weed should not be excluded from the extensive list of everyday items consumers can have brought to their front door, especially in the time of COVID-19.

“Consumers can order household products, food and alcohol for same-day delivery,” said David Clement, North American affairs manager for the CCC. “It is silly to prohibit same-day cannabis delivery from licensed retailers,” Clement said.

“With the exception of Manitoba and Saskatchewan, cannabis consumers are left waiting days for Canada Post to deliver online orders. Provincial governments should immediately remove the legal barriers for same-day delivery from licensed retailers.”

After legalization, Saskatchewan and Manitoba quickly emerged as testing grounds for cannabis delivery services, thanks to their relatively liberal retail regimes, which allow private actors to operate online stores.

The result of those policies — which differ from rules in Ontario, Quebec, B.C. and Alberta, where online cannabis stores are controlled by the province — has been a flurry of cannabis start-ups, including Super Anytime Inc., Pineapple Express Delivery Inc. and Prairie Records that offer same-day delivery to recreational cannabis consumers.

The Ontario Cannabis Store has been slowly testing same-day delivery in the province, but it is currently only available to select postal codes in the Greater Toronto Area, Hamilton, Guelph and Waterloo.

But the time has come to integrate the service countrywide, Clement argued. “Allowing for same-day delivery will help cannabis consumers during the COVID-19 outbreak, but it will also help combat the black market in the long run,” he said.

“There are a variety of illegal online options for same-day delivery. Allowing for licensed retailers to compete will make the legal market more attractive, and could help consumers switch from the black market to the legal market,” he added.

The consumer advocacy group has been critical of government regulation of cannabis in the past, slamming package regulations as being “heavy-handed” and arguing that Canadian consumers have paid the price for the government’s inability to understand the drug.

Originally published here.

Basements and garages were once the only places you could consume cannabis in peace. But now, if the provincial consultation process advances the interests of consumers, millions of Ontario residents will be able to try some forms of the newly legal substance in licensed commercial settings, including bars, lounges and outdoor festivals. One caveat to this development is that the province will not revise the Smoke Free Ontario Act, so only ingesting cannabis products, not smoking them, will be considered for enclosed public spaces.

By significantly increasing consumer choice, moving forward with commercial consumption would be a big win for cannabis consumers in Ontario. This move would bring cannabis regulation closer to alcohol regulation, a big improvement over current “lock-and-key” cannabis rules. More importantly, this would elevate the legal market over the illegal market by giving consumers something the black market never could: a legal and controlled place to consume.

That said, the specifics of how Ontario regulates consumption are key. Edibles and beverages should be available in any restaurant, bar, or clubs currently licensed to sell alcohol, as well as in stand-alone establishments dedicated solely to cannabis consumption. Ready access to legal consuming space is what can ultimately make the legal market more attractive than the alternative. The black market has always had various forms of edible cannabis available for sale but it has never offered a controlled and legal place for users to ingest or consume it. By liberalizing where it allows cannabis consumption the Ontario government can empower the legal and regulated market at the expense of illicit trade.

There are those who say cannabis and alcohol shouldn’t be mixed, and such behaviour shouldn’t be encouraged by allowing their sale in the same places. It’s true: people shouldn’t mix cannabis and alcohol. But that doesn’t mean these products shouldn’t be made available alongside each other, subject to appropriate regulation. Provincial certification programs could train servers both in the risks of combining alcohol and cannabis and in how to avoid abuse where possible. We already trust certified servers to understand the harms of alcohol intoxication and to cut customers off when they are intoxicated. It is not unreasonable to believe they can help enforce responsible consumption of cannabis.

In addition to commercial consumption, the province is also considering a special occasions permit (SOP) to accommodate cannabis consumption at concerts and outdoor festivals, to be used either separately or alongside an alcohol SOP. This should be reasonably simple to implement. Festivals would be able to offer their adult attendees a wider range of products, thus benefiting both vendors and future customers. As to smoking or vaping cannabis, festivals would be well within their rights to allow this in roped-off or age-restricted areas or wherever they currently allow tobacco use. Edibles and beverages could be sold alongside alcohol so long as the servers have the proper certification.

How do municipalities fit in? Ontario made the huge mistake of giving local city councillors veto rights on cannabis retail within their city limits. A city or town that opts out of cannabis retail obviously doesn’t mean consumers in those cities and towns can’t buy cannabis. It just pushes them back into the illegal market, which is precisely what we want to avoid.

Ontario should not make the same mistake with consumption. If a restaurant, bar, club or lounge can meet the provincial licensing required to sell edibles and beverages, it should be free to do so without busybody city councillors intruding into their business.

Green-lighting commercial cannabis consumption is the right thing to do. But the province must get it right. Competitive and consumer-friendly policies for commercial consumption would give consumers greater choice and convenience and help put a dent in the still-prevalent black market.

Originally published here.

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The Consumer Choice Center is the consumer advocacy group supporting lifestyle freedom, innovation, privacy, science, and consumer choice. The main policy areas we focus on are digital, mobility, lifestyle & consumer goods, and health & science.

The CCC represents consumers in over 100 countries across the globe. We closely monitor regulatory trends in Ottawa, Washington, Brussels, Geneva and other hotspots of regulation and inform and activate consumers to fight for #ConsumerChoice. Learn more at consumerchoicecenter.org