GRAM - Retail Outlook For 2023: Exploring California's Cannabis Landscape With Z&A's Analyst Report | Benzinga
As New York state prepares to issue over 1,500 new licenses across the cannabis supply chain, including 800 dispensary licenses, Z&A's latest report delves into the retail landscape in California, a market with more than 1,000 licensed retail stores. What's driving success in this diverse market and how are sales trends shaping up?
"In the California cannabis market, revenue per store surpasses $4 million, but the real story lies in the significant revenue variations among counties," Pablo Zuanic, chief analyst at Z&A, wrote in the firm's latest industry report.
California Retail Cannabis Market Analysis: Retail Revenue Variations by County
- Diverse Revenue Landscape: In the California cannabis market, retail revenue per store surpasses $4 million, significantly higher than other mature markets. However, this figure varies widely by county. San Diego County leads the pack, boasting twice the state average, while Santa Clara County stands out with over 5 times the average. In contrast, neighboring Monterey falls below the state average at $3 million per store.
"While flower retail prices remained stable in 3Q23 compared to the previous quarter, they declined by 14% year-on-year, indicating a challenging market for flower products," Zuanic wrote.
- Retail Scale Matters: The size of retail operations matters, particularly as retailer profit margins for flower products narrow. Additionally, a strategic location in less store-dense counties with above-average revenue per store proves crucial for success.
For a comprehensive understanding of the topics covered in the report, subscribe and watch Pablo Zuanic's panel discussions from the recent Benzinga Cannabis Capital Conference held in Chicago on September 27 and 28. Experts ...