Recreational marijuana shops reopened in Massachusetts in late May after a state-mandated, two-month shutdown in response to the coronavirus, however sales through the first week have been lukewarm.
Retailers throughout the state generated $13.6 million for the week of May 25, up about 60% from the identical week in 2019.
By comparability, via the first 12 weeks of 2020, adult-use sales have been up by a mean of 200% from the earlier yr.
Pent-up demand after the reopening of shops apparently was not sturdy sufficient to maintain the precrisis sales-growth price
Massachusetts is the one state on the East Coast with an operational adult-use trade, which implies it generates a good portion of income from out-of-state guests and vacationers.
But the coronavirus pandemic and ensuing financial fallout have put a cease to most leisure journey, possible a key driver of why sales are softer than what would usually be anticipated.
Nevada and, to a lesser extent, Colorado additionally derive a large portion of adult-use cannabis sales from vacationers, and neither state has fared as effectively via the COVID-19 disaster as markets equivalent to Oregon and Washington state, the place demand is primarily generated by native residents.
Although medical marijuana dispensaries in Massachusetts – many of which even have licenses to promote to the leisure market – have been deemed important and never pressured to shut, some have indicated that medical sales account for simply 10%-15% of revenue.
The adult-use licensing course of in Massachusetts is notoriously troublesome to navigate, with solely 60 retail cannabis shops at the moment operational all through the state.
While two months of dramatically diminished income could be powerful for any firm to climate, the companies which have secured the required approvals and permits to be up and working are in a greater place than most.
Sales information reveals that vape merchandise obtained a lift in the first week of Massachusetts’ reopening, with the class’s share of sales rising from 14.5% throughout January and February to just about 20% through the week of May 25.
Vape merchandise’ share achieve got here largely on the expense of pre-rolls, which captured 6% of sales through the week of May 25, down 4 share factors from the first two months of 2020.
Consumers shifting away from pre-rolls – which are sometimes shared amongst a number of folks – observe related patterns noticed in different adult-use markets for the reason that coronavirus pandemic started.
Eli McVey will be reached at [email protected]
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