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There's got to be a good middle ground. Seems like there's a smoke shop every block in my area (outside Boston). I highly doubt the demand is that high. And they're all chain places, too. That space could be used for more local and more useful businesses.
I'm not following your logic. If demand is not high enough to support the store location, are you suggesting that these stores are being run unprofitably, and if so, where's the money coming from to make up the shortfall to continue operations on a monthly basis?
Or is it possible that landlords are taking a loss on rent because some rent is better than no rent because there aren't more local/useful businesses willing to open in those spaces?
We have 14 dispensaries for our city of 55k (6sq miles) and there are regularly lines out the door. Demand is fine.
I personally can't stand small shops. They regularly lack online shopping and have higher prices. Sunnyside, our local chain actively hires those from the queer community, have consistent products, and offer the best prices.
Sounds like it works in your area, then. Good for you, and I don't mean that sarcastically. If it worked like that here, I wouldn't be complaining as much (though that comment is the only time I've actually complained, which tells you how big a deal it isn't).