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Be the first with the news that moves the market- Canopy Growth Corporation (TSX:WEED) will close all Tokyo Smoke and Tweed retail stores amid increases in COVID-19 shutdown measures
- 23 corporately owned stores in Newfoundland, Saskatchewan, Manitoba and Ontario will be affected
- Customers will still be able to purchase products via other channels, including e-commerce platforms
- No information has been given as to how long the outlets will remain closed
- Canopy Growth (WEED) is currently down 2.01 per cent, with shares trading at C$14.13 and a market cap of $4.94 billion
Canopy Growth Corporation (TSX:WEED) will close all Tokyo Smoke and Tweed retail stores amid increases in COVID-19 shutdown measures.
Sweeping regulations have been imposed over the last few days in an effort to curb the spread of the virus. Public health officials have recommended limiting outings, and the Federal Government has closed Canada’s borders to all foreign travellers.
Many companies, like Canopy Growth, are also putting in place policies to protect both the public and their employees.
23 of Canopy Growth’s corporately owned stores in Newfoundland, Saskatchewan and Manitoba, as well as the Tweed Visitor Centre in Ontario, will be affected.
However, the company has also acknowledged that it still has a commitment to its customers and medical patients. As such, it will turn its attention to its already established e-commerce platforms.
Adult consumers in Manitoba and Saskatchewan will be able to purchase products via the Tokyo Smoke and Tweed online stores. Other patients will be able to purchase through Spectrum Therapeutics.
David Klein, CEO of Canopy Growth, believes that the company’s actions were an obvious choice.
“We have a responsibility to our employees, their families, and our communities to do our part to “flatten the curve” by limiting social interactions. For us, that means shifting our focus from retail to e-commerce.
“This is a big decision, but it was also an easy one to make – our retail teams are public-facing and have been serving an above-average volume of transactions in recent days,” he said.
The cannabis industry as whole has been suffering for the last 12 months, due in part to an overvalued market. Many company valuations have seen a progressive decline since the beginning of 2019 as the cannabis hype failed to reach expectations.
That said, the majority of companies remain optimistic. COVID-19 has, so far, not had the same level of impact on the cannabis industry as it has on others, like the energy and aviation sectors.
“Given the current situation, it is in the best interest of our teams and our communities to close these busy hubs until we are confident, we can operate our stores in the best interest of public health,” David said.
Canopy Growth (WEED) is currently down 2.01 per cent, with shares trading for C$14.13 at 9:53am EST.
