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Increase in retail marijuana stores results in more consumers

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Ever since the adult-use cannabis are legalized, the U.S. cannabis industry has drastically evolved. A total of 11 states and the District of Columbia have legalized recreational use.

Colorado generated total revenues of USD 683.52 Million during its first year of legalization in 2014. The state has reported total marijuana sales of USD 1.31 Billion. Massachusetts, which is a much smaller marketplace, reported USD 138.9 Million in the six full months of operations.

The staggering revenue margins are a direct result of Colorado’s early adoption in comparison to Massachusetts’ more recent foray into the industry. To put Colorado’s cannabis market into perspective, there were 364 dispensaries in the city of Denver alone in 2018. Among the 364 dispensaries, 169 locations were recreational or “retail marijuana stores,” while 195 were medical dispensaries.

Overall, the number of dispensaries in Denver was more than triple all of the Starbucks and McDonald’s in the city, 111. Meanwhile, Massachusetts had 25 recreational dispensaries in operation as of August 2019.

As more people begin to explore the cannabis marketplace, the industry is positioned to experience substantial growth in the shortcoming future. The total sales of recreational cannabis are anticipated to account for USD 18.1 Billion to USD 22.0 Billion, while medical cannabis is expected to account for USD 6.9 Billion to USD 8.4 Billion.

The overall growth of recreational market sales signals that more states could be moving towards legalizing adult-use, while existing legal regions are seeing their consumer base continually grow.

The recreational market revenue is attributable to the number of dispensaries that are constantly emerging throughout the U.S. as well as e-commerce platforms. E-commerce platforms are becoming highly popular because consumers can simply receive their products at their door steps.

The e-commerce platforms create a speedier process by allowing consumers to shop at the convenience of their homes, digitally pay for the purchase, and then have them delivered. Meanwhile, online portals can receive consumer payments digitally, eliminating the need to pay upfront at the store.

Tim Sultan of the Arizona Dispensaries Association said that they would like to see a solution to cash management problem. He added, “There’s just too much cash in the industry because banks can’t do business with us. We have dispensary owners paying their employees with cash, paying their vendors, paying their electric bills, going to APS with thousands of dollars, paying their taxes with tens of thousands of dollars cash, and just feeling really nervous walking up there with a bag full of cash.”

iAnthus Capital Holdings, Inc. announced a total of nine  dispensaries in Florida and its system-wide total to 27. Hadley Ford, Chief Executive Officer of iAnthus said, ” Florida has an exciting and rapidly growing market. We’ve opened six locations in eight weeks and will continue to expand both our dispensary footprint and our product offerings.”

Global Payout, Inc. announced yesterday that, “their Third Quarter Disclosure has been published on OTC Markets and shows a significant increase in revenue over Q2 of this year. Gross revenue nearly tripled and net revenue more than doubled over the previous quarter.” Global Payout, Inc. is a leading provider of comprehensive and customized prepaid payment solutions. The Company plans to focus the remainder of the year on continued efforts in banking, software developments, and system enhancements.

 

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