RCCO White Paper: The Case for Margin Floors in Ontario Cannabis Retail

Independent cannabis retailers in Ontario operate on some of the thinnest margins in Canadian retail. The Council's white paper on margin floors examines the structural pressures on store-level profitability and makes the case for a minimum retail margin.

The problem

Between wholesale pricing, market saturation, and competition from the unlicensed market, many independent stores cannot achieve sustainable unit economics regardless of how well they operate.

Our recommendation

The paper recommends the introduction of a margin floor — a guaranteed minimum spread between wholesale cost and regulated retail pricing — alongside complementary measures to stabilize the independent retail sector.

Members can request the full white paper by contacting the Council.