Statistics Canada released January retail sales for the country, with cannabis sales decreasing from the December levels, down 14.9% to C$418.3 million.  December, originally reported at C$499.4 million, was revised lower to C$491.6 million. The sales in January were up 4.1% from a year ago. This was down from the 20.3% August 2023 growth rate and above the prior lowest annual  growth rate since legalization commenced  of -2.8% in May, but it was down sharply from the December growth of 9.6%.  In 2024, total sales increased 1.5% to C$5.24 billion.

An increase in the number of stores as well as falling flower prices that bring consumers from the illicit market have been boosting sales. In Ontario, the largest province in population, sales were down 24.4% from December and down 4% from a year ago. Alberta, which is the second-largest province, was down 6.6% from December and up 10% from a year ago. Quebec was down 13.8% from December and down 4% from a year ago, while British Columbia was exceptionally strong at up 7.7% from December as it rose 34% from a year ago.

Hifyre IQ had forecast January sales at C$463.0 million based upon its data, so this was quite below its estimate. The service seems to no longer be functioning.

The February sales data will be released on April 25th.

Exclusive article by Alan Brochstein, CFA

Based in Houston, Alan leverages his experience as founder of online community 420 Investor, the first and still largest due diligence platform focused on the publicly-traded stocks in the cannabis industry. With his extensive network in the cannabis community, Alan continues to find new ways to connect the industry and facilitate its sustainable growth. At New Cannabis Ventures, he is responsible for content development and strategic alliances. Before shifting his focus to the cannabis industry in early 2013, Alan, who began his career on Wall Street in 1986, worked as an independent research analyst following over two decades in research and portfolio management. A prolific writer, with over 650 articles published since 2007 at Seeking Alpha, where he has 70,000 followers, Alan is a frequent speaker at industry conferences and a frequent source to the media, including the NY Times, the Wall Street Journal, Fox Business, and Bloomberg TV. Contact Alan: Twitter | Facebook | LinkedIn | Email