Cannabis sales have been sluggish lately, will April 20th change that trend?
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BDSA, a market research firm specializing in the cannabis sector, predicts that the impact of the 4/20 public holidays will be greater. will be greater than in the past two years. For the past two years, April 20 fell on a Monday and a Tuesday — the two days of the week with the lowest daily sales, according to previous BDSA retail sales tracking data.
This year, BDSA forecasts that April 20 overall cannabis sales in mature markets will be 50% higher than average daily April sales.
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4/20: An opportunity to boost dollar sales
“The approximately 420 retail promotions and sales on offer are a major draw for the consumer base, as ‘low price’ is consistently one of the top three factors influencing product selection, as well as the top three factors consumers consider when making cannabis purchases,” BDSA reported in a press release.
As Americans grapple with higher prices on a wide range of other goods, consumers are likely to take advantage of the 4/20 promotions. BDSA data tracking Colorado retail sales in 2021 showed that April 16-20 saw the lowest average retail prices but also the highest daily dollar sales of any day of the month.
According to the BDSA, retailers will offer more discounted products in 2022.
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“Average retail prices on the 420 public holidays are expected to fall 15% from average retail prices on other days in April and see increases across all product categories, with the beverages sub-category “performing exceptionally.”
Cannabis beverages are expected to lead sales
While the sales volumes and total sales in dollars for the days surrounding 04.20. driven up, the source of these increases compared to category share will not change during a normal week.
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BDSA advised retailers to ensure they “have the right range of products going into peak sales days around the 4/20 public holidays.
“Drinks have seen the largest percentage growth in edibles of any edible subcategory over the past year. While retailers should definitely have an assortment of floral, concentrate and confectionary products, you can expect beverages to play a bigger role in this year’s 420 celebrations,” the company noted.
This article originally appeared on Benzinga and has been republished with permission.
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