Inner Spirit Holdings Ltd., a Canadian company that has established a national network of Spiritleaf cannabis retail stores, announced it has achieved $105 million in system-wide retail sales1 and served approximately 2.3 million customers in 2020. The Company also continues to be active with a Spiritleaf store opening in Edmonton (Gateway) on December 28, 2020 and store openings planned for Hamilton (Downtown) on January 8 and Toronto (Stock Yards) on January 15. Please visit www.spiritleaf.ca for further information on store openings, locations, operating hours and the safety measures in place during the COVID-19 pandemic.
“Surpassing the $100 million system-wide retail sales1 milestone for 2020 is such an impressive achievement for the Spiritleaf network, our franchise partners and employees. We made significant progress on our business strategy as we opened a new Spiritleaf store every 14 days on average last year to serve local communities and share our knowledge and expertise with customers. We expect 2021 will be just as eventful as we plan to increase our store-opening cadence and enter new markets, all while operating safely during the ongoing pandemic. We look forward to continuing our strong business performance and continuing to earn the support and commitment from our customers, franchise partners, employees, strategic partners and shareholders,” said Darren Bondar, President and CEO of Inner Spirit.
The Company plans to report its fourth quarter and full year 2020 financial results in early April 2021. With the $105 million in system-wide retail sales1 reflecting the sales from both franchised and corporate-owned stores in 2020, the Company is projecting annual revenue of approximately $26 million (comprised of royalties from Spiritleaf franchisees and the sales from corporate-owned stores along with other items), a gross margin range of 46% to 48%, and approximately $4.7 million in cash on hand as of December 31, 2020.
The new Spiritleaf stores in Edmonton, Hamilton and Toronto bring the number of locations to 70 across the country – the most cannabis stores being operated by any single brand retailer in Canada. Of these stores, 57 are franchised and 13 are corporate-owned. Additional Spiritleaf store locations to open in 2021 have been conditionally secured in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, and Newfoundland and Labrador. The Company intends to be operating more than 100 Spiritleaf stores by the end of 2021, with approximately 80 franchised and over 20 corporate-owned.
Due to the pandemic and with various restrictions in certain provinces, Spiritleaf stores are operating with enhanced customer service processes to ensure the safety of employees and customers. Spiritleaf’s Select & Collect service enables customers to pre-shop and order online prior to pick-up in store or curbside or via delivery where permitted. Customers can also connect with their local Spiritleaf store through The Collective customer benefits program to further streamline and individualize their shopping experience. The fast-growing and popular Collective program has over 185,000 members.
|
1 |
System-wide retail sales is a Non-IFRS financial measure. For more detail, see the “Non-IFRS Financial Measures” section below. |
Inner Spirit Holdings Ltd. (CSE:ISH) is a franchisor and operator of Spiritleaf recreational cannabis stores across Canada. The Spiritleaf network includes franchised and corporate locations, all operated with an entrepreneurial spirit and with the goal of creating deep and lasting ties within local communities. Learn more at www.innerspiritholdings.com and www.spiritleaf.ca.
