First discount club cannabis retailer in North America

Published on October 20, 2021 by oz. staff

Inside Canna Cabana's Ottawa location Photo: Canna Cabana
Inside Canna Cabana's Ottawa location. The retail chain has announced it will be a discount club retailer.

The cannabis retail landscape is shifting again.

Canna Cabana has announced it is immediately transitioning all of its stores to a discount club concept—which the parent company, High Tide, says positions it as the largest cannabis value retailer overnight.

The company says that “regulatory environment permitting,” it may explore introducing a membership fee for the Cabana Club, and provide annual profit share/cashback or other perks to its 245,000-plus members.

High Tide says the loyalty program will also be available in BC, where the first Canna Cabana store is expected to open in the near future.

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Raj Grover, president and CEO of High Tide, says this is a first-of-its-kind model in cannabis throughout North America.

“While other retailers have made moves to service the value segment, our strategy sets us apart as the only retailer in Canada which will have a discount club loyalty plan,” says Grover.

“We have specifically developed this retail concept to speak to the needs and preferences of today’s cannabis consumer, with a focus on value, quality, and an exclusive product portfolio.”

Grover says the company is accelerating its “value-focused strategy,” which was initially planned to be rolled out under the Cannabis Chop Club brand in select locations only.

The program is apparently modelled after a leading membership-based grocery discount club retailer. High Tide says it expects the model to convert price-sensitive legacy customers to legal market consumers.

High Tide says it’s also looking at subscription boxes in the future as regulations change.