Weed Sales Soar on Fourth
DENVER, July 7, 2016 /PRNewswire/ — While most people would expect to see an increase in the sales of fireworks, ice cream, and gas grills the Fourth of July holiday, most cannabis retailers saw a rise in sales of marijuana products on one of the biggest “cannabis holidays” of the year. Independence Day rivaled 4/20 sales (April 17-20 sales) for the cannabis industry’s highest grossing sales holiday. July 4, and the 3 days leading up to July 4, saw $80.4M in cannabis retail sales, a 25% percent increase over June 2016 daily sales averages. The Fourth of July is widely known for cannabis consumption; however, it also drives cannabis tourism. Retailers often see a spike in store visits, purchases, and most importantly, sales.
MJ Freeway’s retail sales data figures are compiled through analysis of 40% of the cannabis retail market. “With the largest data set in the marijuana industry, we are able to understand the cycle of this fairly new market and help our clients know when and how to prepare for their busiest days,” said Jessica Billingsley, MJ Freeway’s COO. “By having a comprehensive view of our clients’ businesses, from sales trends, to product security, and even employee scheduling, we can assist them in choosing the best, most profitable options for their patients and consumers.”
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July 4th by the numbers
- With July 4, 2016 falling on a Monday, the extended 3-day “weekend” drove a sharp spike in sales starting on July 1 with sales rising by more than 25% and total sales between July 1 – July 4 topping $80,419,000.
- The highest sales day was July 1 at $29.2M in sales. July 1 benefited from being the Friday start of the extended holiday weekend with Fridays being the highest weekly sales day for cannabis businesses on an average week.
- The cannabis regulated market has grown with states legalizing both medical and adult use in the last 12 months. A portion of this year’s overall July 4 holiday sales increases can be attributed to market expansion, but same-store sales in states with few regulatory changes are also up showing organic growth is contributing to overall industry growth. July 1-4, 2016 same-store cannabis retail sales in CA, CO, VT and WA (states with few implemented regulatory changes over the last 12 months) increased by 22% over July 1-4, 2015. State laws did not expand who can consume cannabis in these states, yet overall customer traffic was up by 25%.
- The state with the total highest dollar sales for July 1-4, 2016 was California with $43.5M. Colorado came in second with $20.5M.
Key Takeaways for Cannabis Operators
- Stores that stay open later and all days of the week (including the holiday) benefit more than those that do not. Shoppers ramped up their holiday purchases up to five days in advance of the holiday.
- On July 4th 2017, be prepared for customer traffic to increase by another 25% or more.
- If a cannabis retailer’s customer traffic or sales did not increase July 1-4, 2016 versus July 1-4, 2015, then retailers should assess their overall patient and/or customer traffic and average basket ring data to identify where they have gaps to the market and how to close.
- Cannabis sales spike around April 20th, July 4th, and New Year’s Eve. Stores that can accommodate special preparations for those days will benefit the most.
“Sales increases during cannabis holidays like April 20th and July 4th speak to a growing trend in the ubiquity of the cannabis market in the US,” says Jeannette Ward, MJ Freeway’s Data & Marketing Director. “The benefit to states through tax revenues and increased foot traffic in hotels and local businesses only helps to make local and state economies more vibrant and prosperous.”
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