Some expect to see a decline in the number of pot stores in 2022 as market saturation takes hold.

You can sit down in a green velvet love seat for a consultation with Courtney Fonseca.

As the fourteenth cannabis retailer to open in the City of Waterloo in less than two years, the new Hyerlove Cannabis shop at 1 King St. N is branding itself as a wellness collective with “lovetenders,” not budtenders, who aim to be more inviting in a market where differentiation can be difficult.

“I think anyone that’s in this industry would agree that Ontario didn’t necessarily roll it out in the right way,” said Fonseca.

"With that number of competitors in a seven-block radius, it's likely that they all may not be successful," according to Tracy Van Kalsbeek, executive director with the Uptown Waterloo BIA. "Time will tell."

“We reevaluated a few times – is it worth continuing down this path?” Fonseca said.

Some shops are colourful, others are quaint. Uszynski's Uptown Herb seems cozy, depending on how you feel about a couple of bulldogs on site.

Patronage has been decent since opening in August, Uszynski said.

"But there's no rhyme or rhythm. A Monday can be just as busy as a Saturday."

Legal retailers are still competing with delivery services on the black market; however, recent studies show that more consumers are choosing to purchase cannabis products through legal channels.

Uptown Herb doesn't deliver and Uszynski said he plans on competing by establishing a close rapport with clients and offering a curated assortment of quality products.

On the AGCO’s website, there are now 15 stores listed as "authorized to open" in the City of Waterloo, with eight other locations listed in progress or in the public notification phase.

“I personally don’t think there’s enough people who smoke cannabis in this town itself to support it,” Uszynski opined.

“There's almost more marked cannabis stores than there are coffee shops at this point,” said Cameron Brown, spokesman for The Hunny Pot Cannabis Co., with 16 retail locations across Ontario, including in uptown Waterloo.

The Hunny Pot was the first legal, bricks-and-mortar cannabis store in Toronto in 2019.

“Coming into 2022, we're now at 1,367 stores in the Ontario market – an unbelievable number,” said Brown.

Some folks initially projected that the Ontario market could sustain around 1,400 to 1,500 stores. Brown doesn’t believe that to be true now, especially with municipalities such as Mississauga, Oakville, Newmarket and Markham opting out of the retail cannabis market.

“How do you differentiate when you're selling similar products from the same supplier without any buying power?” said Brown.

“We're all buying from OCS (Ontario Cannabis Store), so we all have the same cost.

“So how can we make sure that your experience is the best experience? And how can we give you products that you're not going to get another location?”