- The COVID-19 pandemic has obviously had a dramatic effect on businesses in Canada, as far as the impact upon them concerning supply chains, demand, and the decline in availability of retail stores to acquire cannabis in; the number of which were already unable to meet consumer demand.
- While there are a number of variables to consider, I want to specifically look at two of them that will have an impact on the quarter ended March 31, and also the current quarter; including the unknown effect of the rush to buy cannabis in anticipation of Canada starting to shut things down, and the decision to shutter a number of cannabis retail outlets, including in the important Ontario market.
- Although there’s no way of knowing at this time whether or not Canadian marijuana customers had changed their regular habit of going to physical stores for product or not, it’s definitely a big catalyst for the quarter if the same or better results were occurring in retail outlets.
- Although Aurora has a very good chance of surprising in their next earnings report for the quarter ended March 31, the current quarter has the potential to do the opposite, based upon the reduction in retail outlets being opened for business.
- How long stores are shuttered and how many cannabis users transition to online services will determine the level of decline in sales in the reporting period.
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