Another summer pick-me-up for marijuana retailers downtown came from Lollapalooza.
PharmaCann and Cresco Labs (OTC: CURLF) both reported record sales at their River North locations during the four-day music festival, which concluded on Sunday. Sales were up “double digits over last year,” according to David Chiovetti, a chief commercial officer of PharmaCann, which runs a store close to Clark and Superior streets. More individuals entered, and they made more purchases.
The cannabis business is struggling with falling marijuana costs and concerns that consumers may cut back on their purchases or switch to less expensive goods as a result of inflation.
Cresco Labs reported record volume and an increase in overall sales at its Sunnyside retail location at 436 N. Clark Street. A representative stated, “We made up for it with more transactions and more products per transaction, making it a winning festival weekend. The cost per product was down somewhat from last year’s prices.
A spokeswoman for Dispensary 33, which has locations on the North Side and the West Loop, stated, “We saw a good rise in new consumers. At both stores, the weekend went well.
For marijuana retailers, Lolla has proven to be a dependable performer. This year, the boost is even more appreciated. In contrast to the S&P 500 Index’s 14% decrease, cannabis stocks have been in a depression, with many down 50% or more for the year.
The research firm Cowen recently reduced its prediction for U.S. growth by roughly 50% and now anticipates that sales will increase by 6% this year. Older, less regulated markets with dropping prices due to increased supplies, like California and Colorado, have seen the sharpest drops.
The more recent markets of Illinois and Michigan are constantly expanding. Although price deflation has been a trend in these countries, better foot traffic and volume sales have helped to counterbalance the negative impact on revenue growth from price and mix, according to Cowen analysts in a research note.
According to research company Cannabis Benchmarks, Illinois has the highest wholesale marijuana costs in the US despite having comparatively fewer outlets and fewer new growers starting to harvest products. In Illinois, marijuana is sold for roughly $3,400 per pound. Although that is less than the $4,100 that it was in October, it is still three times the $1,047 per-pound national average.
In all, cannabis sales in Illinois have decreased by 2 percent each of the last two months and are currently hovering at $4.2 million each day. Although freshly licensed stores start to open, a significant influence might not be felt until the following year. The state is hoping for a pickup.