Leading Canadian Retailer High Tide In Expansion Mode
February 5, 2025Leading Canadian cannabis retailer High Tide saw sales climb 7% to C$522 million ($362m) in its fiscal year through October, as the company continues to expand its Canna Cabana chain throughout the market. High Tide’s adjusted EBITDA was at C$38 million ($27m), up from C$31 million ($21m), a year earlier. High Tide says it’s the highest revenue-generating cannabis company reporting in Canadian dollars for the third year in a row, and is well positioned for further growth and expansion.
In its most recent fiscal year, High Tide generated 90% of revenue through its Canna Cabana chain and opened 30 new locations, including four in Ontario during the fourth fiscal quarter. Since then, High Tide has opened an additional four locations in Ontario and one in Alberta. While expanding its retail footprint, High Tide has been emphasizing its membership program the Cabana Club, which now includes 1.73 million members in Canada, of which 73,000 are paid members at the club’s Elite tier. Paid memberships have been growing rapidly, rising 161% year-over-year and 28% sequentially.
While High Tide doesn’t sell cannabis in the U.S. yet, the company is planting seeds, creating a U.S. version of the Cabana Club that offers discounts on cannabis accessories and other non-cannabis goods. In addition, High Tide has started U.K. and E.U. versions of the club. “On December 2nd, we marked the international debut of our Cabana Club membership program, expanding into exciting markets outside of Canada,” said founder and CEO Raj Grover. “We are witnessing an accelerating rate of growth in our membership program, which continues to enhance our ability to connect with and serve our customers.”
Canna Cabana locations generate annualized retail sales per square foot of $1,699, a figure the company points out exceeds the dollars per square foot of retail giants like Walmart and Target. “In fiscal 2024, our Canna Cabana bricks-and-mortar stores once again outperformed the market in every province where we operate,” said Grover. “Despite comprising only 5% of the cannabis retail locations in those provinces, Canna Cabana stores captured an impressive 11% of the associated market share in dollars.” —Shane English
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