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How Do You Get People to Buy Weed from a Legal Shop? – Make The Store Less Than 1.86 Miles Away from People Says New Study

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How far someone has to go to get their weed may be a bigger factor than price for many consumers

Cannabis retailers know a not-so-hidden truth: Customers prefer purchasing weed from nearby locations whenever possible. Recent research focusing on Canada’s regulated cannabis market reaffirms this belief, as it indicates that consumer proximity to government-regulated stores significantly raises the likelihood of people opting for legal market products.

As MJ BIZ first reported, the forthcoming paper, scheduled to be published in the Journal of Studies on Alcohol and Drugs, delves into the correlation between the distance of Canadian cannabis users from regulated retail stores and their decision-making process in acquiring marijuana products.

Of particular significance to the cannabis industry, the research revealed that participants residing within a distance of fewer than 3 kilometers (approximately 1.9 miles) from the nearest regulated marijuana retailer displayed a higher tendency to obtain cannabis from a legal store. Conversely, they were less inclined to acquire it through a regulated website, one of the alternative methods reported by survey respondents.

Elle Wadsworth, the lead researcher of the paper during her previous role as a postdoctoral student at the University of Waterloo and the Canadian Centre on Substance Use and Addiction, and currently a senior analyst with Rand Europe, noted that the findings suggest a potentially diminishing effect over time in terms of the proximity’s influence on consumer behavior.

According to Michael Armstrong, an associate business professor at Brock University in St. Catharines, Ontario, who specializes in studying Canada’s regulated cannabis market (and was not involved in Wadsworth’s research), the abundance of cannabis stores might lose its impact unless they are in very close proximity. The study highlights the significance of convenience for Canadian cannabis users. Having at least one store close to consumers’ residences could be a critical factor in driving them toward the legal market.

Armstrong suggested that retail chains in the cannabis industry should pay close attention to the study’s findings, which indicate that a distance of approximately 3 kilometres holds significance for consumers. When planning store locations, this proximity factor should be taken into account.

However, Armstrong emphasized that while proximity is essential, other factors also play a crucial role in-store placement decisions. One key consideration is the financial viability of each location. Retailers must assess whether they can generate sufficient revenue to support the number of stores in a given area.

Additionally, finding the right balance between store density and profitability is vital. Retailers must determine whether concentrating stores in a specific area (higher density) or spreading them out across different regions is the more effective way to maintain profitability.

The Three-Kilometer Effect

The study investigated the impact of regulated cannabis store proximity between 2019 and 2021, encompassing the first full year following Canada’s legalization of recreational marijuana in October 2018. To conduct the analysis, data from 15,311 Canadian cannabis users were utilized, and their locations were sorted based on postal codes. It’s worth noting that Canadian postal codes generally represent much smaller geographical areas compared to U.S. ZIP codes.

The researchers investigated the various sources from which cannabis users obtained marijuana, including regulated stores, illicit stores, regulated websites, illicit websites, illicit dealers, home production, and acquiring from family and friends.

The study revealed that individuals residing within a distance of fewer than 3 kilometers from a regulated brick-and-mortar cannabis store were less inclined to purchase cannabis from regulated websites or engage in home cultivation than those living farther away.

According to the paper, the distance to the nearest legal store did not significantly affect sourcing cannabis from friends or family, dealers, illegal websites, or illegal stores. The lack of correlation might be attributed to these relationships being established before cannabis legalization.

The study highlights an interesting finding by comparing Alberta to Quebec, indicating a seemingly diminishing effect of reducing cannabis store distance for consumers. In 2021, Alberta’s open market approach for private-sector cannabis retail resulted in a high density of cannabis stores, with 18.7 stores per 100,000 residents. On the other hand, Quebec’s government-owned retail monopoly had a considerably lower density, with just 0.8 stores per 100,000 residents.

While Albertans did exhibit a higher likelihood of obtaining cannabis from regulated stores compared to Quebecois, the difference was not particularly substantial, with Albertans being only 1.6 times more likely to do so.

The study pointed out that the disparity could be attributed to the distinct approach taken in the two provinces. In Alberta, the market-driven approach resulted in a significantly higher number of stores per capita. In contrast, Quebec’s government-planned retail store locations were strategically distributed to align with the population distribution, leading to a more geographically diverse setup.

The researchers also determined that Canadian respondents lived closer to regulated marijuana stores in 2021 than in 2019 – an effect explained by the increase in adult-use marijuana stores across Canada during that period. Additionally, regulated stores became the most common source of cannabis in 2020 and 2021, compared to family and friends in 2019.

Wadsworth said that’s “important for legalization,” noting, “The whole aim is to bring people into that legal market, and our paper shows that the movement seems to be there.”

Finally, the research found that a higher proportion of respondents sourced cannabis through regulated channels – and a lower proportion sourced it through the illicit market – in 2021 versus 2019, in line with one of the stated objectives of Canada’s recreational cannabis-legalization law.

The Impact of Consumer Proximity on Cannabis Store Selection

The association between consumer proximity to regulated cannabis stores and their likelihood of shopping at those stores may not surprise cannabis retailers. However, according to business professor Armstrong, who spoke with MJBizDaily, it is a groundbreaking finding in academic research.

This study marks the first time researchers have delved into this question, confirming that having a legal store nearby significantly increases the likelihood of consumers purchasing cannabis legally. Armstrong’s prior research has already established a link between the number of legal cannabis stores in Canada and increased sales of legal cannabis.

From a business perspective, this finding is crucial, but it holds even greater importance for regulatory or government-policy considerations. Having a legal store nearby seems to drive more consumers into the legal market, aligning with the objectives of cannabis legalization efforts.

It’s worth noting that the 3-kilometer distance used in the study represents a straight line between a respondent’s postal code and the closest retail store, which may not accurately reflect the actual travel distance. Armstrong cautioned against interpreting the 3-kilometer figure as a “scientific magic number.” While minor differences, such as 3.1 versus 2.9 kilometers, may not significantly impact, longer distances like 6 or 7 kilometers may make legal stores less convenient. This can potentially sway consumers towards other sources.

Source: https://cannabis.net/blog/news/how-do-you-get-people-to-buy-weed-from-a-legal-shop-make-the-store-less-than-1.86-miles-away-fr

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Jio’s 1,600-Satellite LEO Constellation Gets Technical Green Light

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Reliance Jio has crossed a significant milestone in its space connectivity ambitions after its proposal to deploy a Low Earth Orbit (LEO) satellite constellation of around 1,600 satellites received a positive technical assessment from the Indian National Space Promotion and Authorisation Centre (IN-SPACe).

The evaluation, conducted jointly by IN-SPACe, the Indian Space Research Organisation (ISRO), and the Wireless Planning and Coordination (WPC) wing of the Department of Telecommunications, reportedly concluded that Jio’s proposed system meets the required technical standards and is comparable to leading global satellite broadband networks.

India’s Indigenous LEO Satellite Vision

Under the proposal, Reliance Jio plans to deploy between 1,600 and 1,650 satellites in Low Earth Orbit at an altitude of around 650 kilometres.

The planned constellation is expected to provide high-speed satellite connectivity across India, with approximately 32 satellites visible from any location at a given time. The company aims to roll out the network within the next two to three years, subject to regulatory approvals.

According to industry estimates, the satellite system could deliver 4.5 to 5 terabits per second (Tbps) of total data capacity, making it one of the largest satellite broadband projects proposed in India.

The project is expected to require an investment of $10–15 billion (approximately ₹95,000 crore to ₹1.42 lakh crore), reflecting the scale of infrastructure needed for satellite manufacturing, launches, ground stations, and user terminals.

Regulatory Process Moves Forward

Following the successful technical review, the proposal is expected to move into the next phase of regulatory approvals.

The government may now assist Jio in securing orbital slots, coordinating spectrum usage, and filing applications with the International Telecommunication Union (ITU), the global body responsible for managing satellite orbit and frequency allocations.

Obtaining orbital rights remains a critical step, as Low Earth Orbit has become increasingly competitive due to the growing number of satellite broadband projects being planned worldwide.

Officials also indicated that the proposed satellite architecture has been designed to coexist with future Indian LEO constellations, allowing multiple domestic operators to share orbital resources efficiently.

Broadband, Mobile Connectivity, and Strategic Applications

Jio plans to use the satellite network to provide a range of communication services, including satellite broadband, mobile backhaul, enterprise connectivity, and direct-to-device (D2D) satellite communication, particularly in remote and underserved regions where conventional telecom infrastructure is limited.

The company also intends to establish 20 to 22 ground stations across India to support network operations.

Apart from commercial telecommunications, officials have highlighted the project’s potential strategic importance. A domestically developed satellite constellation could strengthen India’s communication infrastructure, reduce dependence on foreign satellite operators, and support national security requirements.

Reports suggest preliminary discussions are underway regarding the possibility of integrating defence-related payloads into some satellites, enabling both civilian and strategic use.

Major Step for India’s Space and Telecom Sectors

Industry analysts view the technical clearance as an important milestone in India’s expanding private space ecosystem. If Jio secures the remaining regulatory approvals and international orbital clearances, the project could become the country’s first large-scale indigenous LEO satellite broadband network.

The initiative also aligns with India’s broader efforts to expand digital connectivity while strengthening its presence in the global satellite communications market.

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Alleged Crores Pharma Scam Mastermind Arrested from Surat

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After evading law enforcement for nearly 13 years, an accused linked to a large-scale pharmaceutical fraud case has been arrested by Delhi Police from Surat, Gujarat. The suspect is alleged to have orchestrated a series of financial scams involving fake identities, forged documents, and dishonoured cheques used to procure high-value pharmaceutical raw materials.

Authorities say the accused, identified as Himmat Singh Lodha, is believed to have defrauded multiple pharmaceutical companies in Delhi of goods worth approximately ₹98 lakh before disappearing and remaining underground for years.

Fake Business Deals and Dishonoured Cheques Used in Fraud

Investigators claim the accused posed as a legitimate pharmaceutical trader and placed bulk orders for expensive drug ingredients, offering post-dated cheques as payment security.

In one documented case from 2013, he allegedly obtained around 550 kilograms of Gliclazide, a diabetes-related pharmaceutical ingredient, valued at over ₹26 lakh. When suppliers attempted to encash the cheques, they were reportedly returned with the remark “account closed.”

Following the transaction, the accused allegedly vacated his office and rented residence and disappeared without settling payments. He was later declared a proclaimed offender in 2016 after repeatedly failing to appear before court proceedings. Authorities had also issued a reward for information leading to his arrest.

Multiple Identities and Repeated Fraud Pattern

Police investigations further link the accused to another cheating case dating back to 2012, where he allegedly used a fake identity, “Kailash Jain,” to obtain a large consignment of Ambroxol HCL, a pharmaceutical compound used in cough medications. The value of that consignment was estimated at around ₹72 lakh.

Officials believe the accused followed a consistent modus operandi—posing as a credible businessman, securing high-value goods on deferred payment terms, and then disappearing after delivery while shutting down business operations.

Investigators suspect that forged business records, fake company credentials, and fabricated financial histories were used to build trust with suppliers and gain access to expensive raw materials.

Multi-State Surveillance Leads to Arrest in Surat

A special Crime Branch team tracked the accused through coordinated surveillance efforts across multiple cities, including Mumbai, Ahmedabad, and Surat. After nearly a month of technical monitoring and intelligence gathering, officials located and arrested him from a residential area in Surat.

Authorities also revealed that the accused had been involved in property-related activities while staying under the radar to avoid detection.

Growing Threat of Corporate Identity Fraud

The case highlights a rising trend of organised financial fraud targeting industries that rely heavily on trust-based transactions and deferred payments. Experts note that criminals increasingly exploit gaps in corporate verification systems by using fake GST registrations, temporary offices, and forged documentation to appear legitimate.

Cybercrime and financial fraud specialists warn that such schemes are becoming more complex with the widespread availability of digital business tools, making it easier to create convincing but fraudulent corporate identities.

Experts Urge Stronger Due Diligence in High-Value Transactions

Experts, including former IPS officer and cybercrime specialist Prof. Triveni Singh, emphasize the need for stricter verification procedures in commercial dealings. He noted that relying solely on paperwork or digital business profiles can expose companies to significant financial risk.

Authorities and industry experts recommend physical verification of business operations, bank account validation, and detailed background checks before engaging in high-value or deferred-payment transactions—particularly in sectors like pharmaceuticals, where single consignments can involve transactions worth crores.

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EU Pressure Builds on Google as Regulators Face Calls for Massive Fine Over Search Practices

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A growing coalition of European industry groups is intensifying pressure on regulators to take decisive action against Google over allegations of unfair search practices that could reshape competition rules across the region’s digital economy.

Investigation Under Digital Markets Act Gains Momentum

The case is being examined by the European Commission under the European Union’s landmark Digital Markets Act (DMA), introduced to curb the dominance of major technology platforms and ensure fair competition.

Launched in March 2024, the investigation focuses on whether Google has been prioritising its own services in search results, potentially disadvantaging rival businesses that rely on online visibility to reach customers.

Industry Groups Demand Swift Action

Several prominent European organizations have jointly urged regulators to conclude the probe without further delay. They argue that prolonged investigations allow alleged anti-competitive practices to continue, putting European companies—especially startups—at a disadvantage.

Signatories include the European Publishers Council, the European Magazine Media Association, the European Tech Alliance, and EU Travel Tech.

In a joint statement, these groups warned that delays in enforcement are affecting innovation, profitability, and growth prospects for regional businesses competing in digital markets.

Google Denies Allegations

Google has rejected claims of bias, stating that its search algorithms are designed to deliver the most relevant and useful results to users. The company has also proposed adjustments to address regulatory concerns.

However, critics argue that these changes are insufficient and fail to address the core issue of market dominance.

Potential Billion-Euro Penalties

If found in violation of the DMA, Google could face significant financial penalties. Under EU rules, fines can reach a substantial percentage of a company’s global turnover, potentially amounting to billions of euros.

Regulators may also impose corrective measures requiring changes to business practices, which could have long-term implications for how digital platforms operate in Europe.

Wider Implications for Big Tech

The case highlights ongoing tensions between European regulators and major U.S. technology firms. In recent years, the EU has taken a more aggressive stance in enforcing competition laws, aiming to create a level playing field for local businesses.

A final ruling against Google could set a major precedent, influencing future enforcement actions and shaping the regulatory landscape for global tech companies operating within Europe.

As scrutiny intensifies, the outcome of the investigation is expected to play a critical role in defining the future of digital competition across the European Union.

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