While retailers should definitely have an assortment of flower, concentrate, and candy products, expect beverages to play a bigger role in this year’s 420 celebrations.
BDSA, a market research firm focused on the cannabis sector, predicts that the impact of the 4/20 holidays will be greater than in the past two years. The past two years, April 20 fell on a Monday and Tuesday — the two days of the week with the lowest daily sales according to past BDSA retail sales tracking data.
This year, BDSA predicts that cannabis sales on 4/20 in mature markets will total 50% higher than the average daily sales for April.
4/20: An Opportunity to Boost Dollar Sales
“The retail promotions and sales offered around 420 are a big draw across the consumer base, as “low price” is consistently a top three influencer of product choice, as well as the top three most important factors for consumers when choosing where to shop for cannabis,” reported BDSA in a press release.
With Americans contending with higher prices for a wide range of other goods, consumers are likely to take advantage of 4/20 promotions. BDSA retail sales tracking data from Colorado in 2021 showed that April 16-20 saw the lowest average retail prices, but also the highest daily dollar sales of any day of the month.
According to BDSA, in 2022 retailers are offering more heavily discounted products.
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“On average retail prices on the 420 holiday are expected to fall 15% from average retail prices on other days in April, and a boost across all product categories, with the beverage subcategory “making a breakout performance.”
Cannabis Beverages Expected To Lead Sales
While sales volumes and total dollar sales will be driven upward during the days around 4/20, the source of these increases will not change compared to the category share during a regular week.
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BDSA advised retailers to make sure they have “the right assortment of products leading up to the peak sales days around the 4/20 holiday.
“Beverages have seen the largest percent growth of the edible share of any edible subcategory in the past year. While retailers should definitely have an assortment of flower, concentrate, and candy products, expect beverages to play a bigger role in this year’s 420 celebrations,” noted the firm.
This article originally appeared on Benzinga and has been reposted with permission.