HEAD FOR THE (IL) BORDER
The Illinois market is heating up, thanks to out-of-state shoppers
Illinois cannabis sales were up 14.6% in April from the same time last year, per Cannabis Business Times.
One reason? Out-of-state shopping by residents of still-illegal states, of which Illinois is surrounded by five. In April, 31% of the state’s $131.8 million in sales came from out-of-state shoppers.
On average, the 110 open dispensaries in the state brought in $1.2 million in April. But competition is likely coming. Last summer, the state issued 185 retail licenses. But they can’t open until the dust settles from a lawsuit arguing that state regulators discriminated against out-of-state applicants.
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CANN YOU BOOK THAT TRIP?
Women are behind a lot of the best US cannabis tourism experiences
Cannabis is driving tourism, with nearly 20% of adult Americans saying they’re “cannabis motivated travelers,” reports Forbes.
And entrepreneurs are stepping up with some innovative cannabis-inspired experiences, like:
- Detroit’s Bud and Breakfast experience at The Copper House
- Portland’s gourmet cannabis-infused dinners by Liv Vasquez
Notably, a lot of women are behind cannabis tourism enterprises. “More than the cannabis and the atmosphere, I think the thing that all of our customers share is a desire to connect and get vulnerable,” said the Copper House’s Jessica Jackson in Condé Nast Traveler.”It’s about cultivating an environment that makes that possible—something Big Cannabis is not doing.”
TOO CLOSE, SO CLOSE
A wave of Canadian store closures is coming: Sundial CEO
The CEO of Alberta-based Sundial Growers warned shareholders that recent store closures are likely to accelerate in the coming year, estimating that 1,000 stores across the country would be impacted, reports MJBizDaily.
There are a few reasons for potential closures:
- Increased competition
- Oversaturation in some areas
- Price compression
- B.C.-based Choom, which recently obtained creditor protection and interim financing from Aurora Cannabis, blamed public health measures implemented by governments to slow the spread of Covid-19
“Most retailers are struggling to be profitable, and we are starting to observe a trickle of closures on a weekly basis,” Sundial Growers CEO Zachary George. “I expect to see massive store closures in Canada, with the toll likely closer to 1000 than 100.”
That could be as many as a third of stores, with 3,138 currently open, according to Cannabis Benchmarks.