Marijuana Dispensary Density Higher Than Starbucks, McDonalds in Established Markets
Colorado dispensaries are having a record year in sales and profits, and although it’s still in the first half of the year, the combined $244.3 million in retail sales logged during the first two months of 2019 topped the same period of sales in 2018 by around $14 million. As laws and restrictions relax and competition between cannabis retailers grows, mature markets are seeing the number of stores in their areas grow exponentially.
Many markets have experienced such rapid growth that the relative density of marijuana shops has surpassed that of coffee mega-retailer Starbucks. Denver, Colorado and Portland, Oregon are two markets where cannabis retailers outnumber Starbucks by almost two to one, and in the far Northern market of Anchorage, Alaska, the two are tied for density according to the recently released Marijuana Business Factbook. Starbucks has managed to maintain a significant lead over marijuana retailers in its hometown of Seattle.
State regulations have a lot to do with the proportion of cannabis businesses in these cities;
Washington limits the number of allowed retailers with a statewide cap, thus affecting the number of marijuana businesses that can obtain an operating license. Alaska, Colorado, and Oregon do not have statewide caps, but municipalities are allowed to impose their own limits.
McDonald’s, another iconic American brand recognized the world over, was outpaced in all four markets. For cannabis retail operators, one valuable lesson that can be taken from the data is that in order to hold onto their customers they need to ensure a positive experience, or they could easily lose their customer to any one of the dozens of other shops in the same vicinity. Savvy retailers will provide their consumers with a compelling reason to visit and return to their shops, such as quality product selection, low prices, knowledgeable, helpful staff, exceptional customer service, and convenience.
Marijuana has been shown to help a wide variety of conditions with minimal side effects. For recommendations on which medical marijuana products may be best for you, call the Colorado Springs MMJ doctors at Medical Alternatives Clinic in Colorado Springs today at (719) 246-0393, or email us at hello@medicalalternativesclinics.com with your questions, or to request an appointment. We are here to assist you in any way we can and will provide you with a copy of any paperwork necessary for your records.
