DENVER, April 13, 2017 /PRNewswire/ -- MJ Freeway, the cannabis industry's leading provider of seed-to-sale traceability solutions, predicts a 20% increase in retail cannabis sales and a 10% increase in customer traffic during the biggest cannabis holiday of the year.
MJ Freeway's predictions are based on sales data figures compiled through analysis of their majority cannabis retail market share. "With the largest and most representative retail data in the cannabis industry, we can more accurately predict trends for the 4-20 holiday," said Jessica Billingsley, MJ Freeway's COO and Co-founder. "It is our mission to offer data like this to clients so they can make more informed decisions and prepare for a more profitable time of year."
April 20th is widely recognized as a holiday by cannabis enthusiasts, increasing cannabis tourism and events. In North America, consumers spent $6.7 billion on legalized cannabis in 2016 (figures provided by the Arcview Industry Report, 2017), a 34% increase from 2015. However, most states that voted in favor of legalization during the 2016 term won't begin sales until 2018. The industry is not expected to see as significant of a market increase over the past year as it did from 2015 to 2016.
4-20 Predictions by the Numbers
- Anticipate individual cannabis licensed retail locations* – dispensaries and delivery services – will sell on average $50,000 in retail sales April 18 – April 20th. *Note: One physical cannabis retail location may operate with two individual licenses – medical and recreational.
- The week of April 20th (April 13 – 20) alone nets a 20% increase in sales compared to the annual cannabis retail sales week averages.
- Prepare for retail customer traffic to increase by more than 10% on April 20, 2017 compared to April 20, 2016.
- On April 20th, retailers can expect a $6 per transaction average increase from average order sales from the rest of the year.
- Friday, April 14th will be the second highest gross sales day of the week. The day before 4-20, Wednesday the 19th will be the third highest grossing day of the week.
Takeaways for Cannabis Operators
- Stores open later hours and seven days a week surrounding the holiday benefit more. Shoppers ramp up their holiday purchases up to six days in advance of the holiday, which falls on a Thursday this year.
- In anticipation for a 10% increase in customer traffic, be prepared to handle the influx with adequately staffed retail locations and sufficient inventory levels.
- The next big cannabis retail sales holiday is July 4, which ranks as the third highest holiday in total cannabis retail dollar sales following 4-20 and New Year's Eve.
To further assist operators in preparation for April 20th, MJ Freeway has compiled a valuable guidebook that offers tips and advice related to:
- Managing the increase in customer traffic.
- Benefiting from the influx in traffic by offering strategic loyalty programs and discounts.
- Preparing for a gamut of possibilities such as security threats or power outages.
- Planning ahead by reviewing inventory, employee schedules, and other parts of your operation to ensure you're ready.
Download the free "4-20 Survive and Thrive Guide" on MJ Freeway's website at info.mjfreeway.com/420-Guide.
About MJ Freeway: MJ Freeway® is the industry-leading software and consulting solution for cannabis businesses, processing $5B in cannabis sales transactions and serving clients in 23 states the District of Columbia, Canada, Europe, and Australia. Founded in 2010 by technologists creating tech specifically for cannabis businesses, MJ Freeway's tracking software includes patent-pending inventory control and grow management applications to streamline workflow and increase efficiency. MJ Freeway's Leaf Data Systems software solution enables governments to track cannabis plants from seed-to-sale and ensure patient, public, and product safety. MJ Freeway also offers a complete suite of consulting services for cannabis businesses. For more information, call 888-932-6537 or visit mjfreeway.com.
SOURCE MJ Freeway