OAKLAND, Calif., Oct. 13, 2020 /PRNewswire/ -- Treez (www.treez.io), a private company focused on retail automation for the cannabis industry supply chain, today announced a variety of data-driven insights into an industry experiencing steady growth, despite a covid-challenged economy.
John Yang, Treez CEO, stated that "as a company with a retail automation platform enabling over 270 retailers and a gross merchandise volume (GMV) of over $1.7 billion annualized and growing, we are able to observe trends of practical value to the cannabis supply chain at large."
"Treez itself is experiencing over 90 percent growth twelve months trailing, and looking closer at our large customer base we are able to validate retail and brand assumptions. Of particular note and like many other retail industries, those cannabis retailers that are most responsive in shifting to digital payment and fulfillment are experiencing the highest growth rates."
Looking deeper, industry observations since the beginning of the year include:
Increase in digital
- 2020 began with 90% of sales in-person, to now only 67% in person. Most of this shift is towards custom ecommerce solutions and marketplace partners powered by Treez API
- Began the year as 18% Digital and 82% Cash
- Digital reached 24% in July and dipped to 21% in August as more shoppers have returned to in-store experiences
- Average order values through integrated digital payments increased by 30%
- While EDIBLES saw a minor uptick in March, YTD SALES DROPPED 10%
- FLOWER SALES GREW from 43% of product mix in Jan to 47% in August
- All other product categories have largely remained constant on sales mix
- Dispensaries that grew less than 10%, or negatively, offered 95 brands on average
- HIGHER GROWTH DISPENSARIES (30% or more) typically offered 65 brands on average
- HIGHER VOLUME DISPENSARIES (annualized 12M or more in Gross Sales) held around 120 brands, with an average brand velocity of 14.8k per month
Bulk flower buying is up
- By average store velocity, flower sales purchased in 14G or higher sizes rose 96% while those purchased between 7-14G rose by 67%
Prices rising, other than Edibles
- Average price units have increased by 19% in Flowers, 9% in Cartridges but dropped by 1.6% in Edibles
More or less Local shoppers?
- A noticeable drop in out-of-state shoppers, clearly a covid virus impact
Brand Loyalty Strong
- On average, the likelihood of a consumer repurchasing a brand's product reached 57%
- For context, Marketing Land research has stated that overall, retail brand loyalty does not significantly appear until three to five purchases
- The dominant driver of brand loyalty is product quality
Rewards for customer satisfaction
- Particularly compelling are the rewards of growth associated with an emphasis on customer satisfaction. See Treez blog: https://blog.treez.io/the-secrets-out-the-future-of-cannabis-retail-is-convenience
Treez is a market-leading, enterprise-grade business management platform serving the cannabis supply chain. The platform solution benefits brands and retailers, with point of sale (POS), integrated payments, grow and data software solutions. Included are analytics for real-time insights and industry cataloging technology that allows greater automation.
Treez was founded in 2016 by John Yang and Shareef El-Sissi. Today, the company is noted for numerous industry-changing innovations beyond original flagship point-of-sale capabilities, particularly with real-time automation between brands, retailers and cataloging technology.
The company closed on an investment during September 2020, and after achieving leading market share in California is currently underway with plans for expansion into multiple additional states during 2021.