Calgary head shop owner claims cannabis stores are being given unfair advantage

Legalization has head shop owner on edge The introduction of cannabis stores in Calgary has an accessory shop owner concerned. Kathy Le reports.

A Calgarian who owns three lifestyle accessory stores says he’s facing an uncertain future as a result of the rules regulating cannabis stores in the city.

Fred Pattison, owner of The Next Level lifestyle accessories, has been in the business since 2004. The success of his original store led to the opening of two additional shops in Calgary.

“The Next Level specializes in accessories for smoking,” explained Pattison. “Smoking any type of substance whether it be tobacco, whether it be herbs or, now that we’re becoming into a legal state, cannabis.”

Pattison had hoped to sell cannabis out of his existing accessory stores but says the rules favoured new cannabis shops.

“I’ve put calls into the City, to multiple people at multiple different stages, (asking) if I could just take cannabis and incorporate it into my business,” said Pattison. “I was told multiple times no, I could not. I would have to do a change of use and then I would have to have more cannabis than accessories. I asked them at that point in time ‘How much is that? Is that a fractional ratio? Is that a percentage? A dollar amount?’ They couldn’t really give me a definite answer at that time.”

Pattison says he did submit a single application to the City of Calgary to sell cannabis but was denied due to an abutment to an existing liquor store.

The owner of The Next Level says the City of Calgary recently changed the bylaws governing cannabis stores to allow the shops to sell the same type of accessories that he offers. “I think it would be strange if someone could open a cannabis store and add accessories but somebody who already has an accessory store couldn’t just add cannabis.”

Pattison believes it will be difficult for the 50 to 100 existing accessory stores in Calgary to compete with the 150 cannabis stores that will begin operating in the coming months and offer a product they cannot sell.

“Most people want cannabis,” said Pattison.  They’re looking to buy cannabis first, not an accessory. If they can, in turn, go to the local cannabis dispensary and now get their cannabis and get something – a pipe, a bong, rolling papers or something like that – in the same spot that really hurts my business because I did not get approved to sell retail cannabis.”

Under the current rules, none of Pattison’s three locations would qualify for a cannabis retail license but he is exploring the option of opening a standalone cannabis store separate from his current shops. “I am constantly looking for new leaseholds that maybe would fit that criterion. If there’s a possibility that I could get a dual usage spot where I could actually integrate cannabis and sell accessories that would be something definitely The Next Level would be looking to do.”

AGLC spokesperson Heather Holmen says the commission is doing its best to provide updated information to the public as legislation is developed but cannabis stores have been permitted to sell accessories from the start. “I think we’d have greater challenges if we were allowing the product to be sold but not having the accessories to go with it.”

“Certainly there will be challenges for small business owners in the accessories business right now but they have the same opportunities to enter the market in the same way new prospective retailers will be entering it.”

The legalization date will not only bring additional competition to the accessories market but businesses including The Next Level will be required to keep their merchandise out of view from windows and doors. Owners will be required to move their stock or frost or tint their windows so items cannot be seen from outside their stores.

With files from CTV’s Kathy Le