High Tide’s Alberta Play: Canna Cabana’s Cochrane Store and the Path to Dominance

On April 20, 2025—marking the cannabis industry’s unofficial holiday—High Tide Inc. (CSE: HT) took a decisive step in its Canadian expansion strategy by opening its 85th Canna Cabana store in Alberta, located at 4A River Heights Drive in Cochrane. This new location, strategically placed in a high-traffic commercial plaza, underscores the company’s ambition to solidify its position as the leading cannabis retailer in the province. But what does this move mean for investors? Let’s dive into the data.

The Alberta Advantage: Market Share and Momentum

High Tide’s financial results for Q1 2025 reveal why Alberta is a focal point. In November and December 2024, Canna Cabana held an 18% market share in Alberta, far outpacing its 10% share in Ontario and the 11% average across its five provinces. This dominance stems from 142% same-store sales growth in Alberta since 2021, a staggering contrast to the 4% decline seen by the average operator in the same period.

The Bricks-and-Mortar segment, which accounts for 95% of High Tide’s revenue, grew by 17% year-over-year to $135.7 million in Q1 2025. Alberta’s outperformance is a key driver of this success, as the province now hosts nearly half of Canna Cabana’s 196 Canadian stores.

Why Cochrane? Location, Demographics, and Competition

The Cochrane store exemplifies High Tide’s strategic retail philosophy. Located in a plaza with a gas station, liquor store, and medical services, it benefits from high foot traffic and convenience. Crucially, the nearest competitor is 3 kilometers away, giving Canna Cabana a near-monopoly on south-end residents. With 8,000 nearby residents and a community described by CEO Raj Grover as having “thriving demographics,” the store is positioned to capitalize on local demand.

The Cabana Club loyalty program, boasting 5.66 million global members (including 81,000 elite-tier members in Canada), further amplifies the store’s potential. Grover emphasized that the program’s growth in Alberta directly ties to customer retention and repeat visits.

Risks and the Bigger Picture

While High Tide reported a net loss of $2.7 million in Q1 2025, its adjusted EBITDA of $7.1 million signals operational efficiency. The company is prioritizing geographic saturation over short-term profitability, a strategy evident in its goal to add 20–30 stores across Canada in 2025. Alberta’s strong performance justifies this bet: its stores are among the most profitable in High Tide’s portfolio due to high sales growth and minimal competition.

Internationally, High Tide is eyeing markets like Germany, where it aims to leverage its $1.5 billion procurement expertise with Canadian licensed producers. However, its domestic focus remains critical. Alberta’s cannabis market is mature but still growing, with adult-use sales expected to rise as regulations evolve.

Conclusion: A Bullish Case for High Tide

The Cochrane store is more than a physical location—it’s a microcosm of High Tide’s retail-led growth strategy. With 142% sales growth in Alberta over three years, an 18% market share, and 85 stores now in the province, the company is building a durable moat against competitors.

Investors should note:
- Scale and efficiency: The Bricks-and-Mortar segment’s 17% revenue growth and $570 million annualized revenue run rate suggest scalability.
- Strategic execution: High Tide’s focus on high-traffic, low-competition sites (like Cochrane) reduces operational risks.
- Loyalty program leverage: The Cabana Club’s 1.76 million Canadian members drive repeat business, a critical factor in a maturing market.

While the net loss remains a concern, the adjusted EBITDA positivity and Alberta’s outperformance argue for patience. High Tide is betting on retail density and brand loyalty to dominate a fragmented market. For investors willing to ride the growth curve, the Cochrane store—and the 84 before it—signal a path to long-term returns.

In a sector where location and execution matter most, High Tide is proving it’s playing to win.