Cannabis lovers in the United States celebrated 4/20, a stoner’s holiday held on April 20 every year, almost a week ago. According to Headset, a marijuana data analytics firm based in Seattle, April 20 is the single largest sales day in the country each year since the legal sale of recreational cannabis began.
The data released by the firm shows that the proportion of sales that takes place on 4/20 increases year over year, except for last year. This can be attributed to the fact that April 20 last year fell on a Monday, which generally tends to have lower sales. Additionally, the decline in sales was likely affected by the coronavirus outbreak and consumers’ unwillingness to meet at in-store events.
Analysis conducted by the firm also shows that while sales in the 4/20 week were among the 10 top weeks of the year with regard to revenue, sales for the week before the holiday were often below average, with sales for the week after the holiday even worse. Given that many companies give discounts during the week of 4/20, it’s no surprise that this happens.
The company also looked at the combined sales of Washington D.C., Nevada, Colorado and California for 2018 and discovered that the week after the stoner’s holiday was the worst revenue week that year. Sales data also revealed that 4/20 celebrations made up most of consumer spending in the summer.
Additionally, the analysis found that in 2020, the sales for adult-use cannabis for the week of April 20 continued growing, despite the coronavirus pandemic. Data shows that the combined sales for the states of Nevada, Colorado and California, along with Washington DC, reached almost $159 million in that week alone, which is equal to a 24% increase, based on data from the previous year.
Despite this though, it’s hard to say whether this increase is normal, given that 2019’s April 20 week experienced a 42% year over year growth.
The high rates of unemployment, consumers’ hesitancy to buy products in-store, and the restrictions imposed as a result of the coronavirus pandemic last year may have also stunted sales during 4/20. For the first time in three years, revenue for the week of April 20 didn’t appear in the top 10, instead, occupying 40th place. However, retail sales increased in the following weeks, as consumers spent more between the months of August and December.
Cannabis executives are hopeful that vaccine rollouts will enable the industry to return to normal soon, and sector players such as Pac Roots Cannabis Corp. (CSE: PACR) (OTCQB: PACRF) (FSE: 4XM) would certainly appreciate having one less issue to deal with.
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