For many traditional retailers, last year held surprises at every turn—some good and some bad. Cannabis retailers haven’t been immune. Results were mixed for participants in the 2022 report.
About 39% of participants reported average monthly sales volumes per location of “$50,001 to $250,000,” a 6 percentage-point increase from 2021. Research participants with average monthly sales of “$50,000 or less” had a 5 percentage-point decrease this year. Nearly 13% of 2022 participants broke the $900,000 mark in average single-location monthly sales.
Annual revenue for participating dispensaries’ most recently completed fiscal year (all locations combined) was also mixed. More than 1 in 5 participants reported annual revenue “> $1 million to $3 million,” comparable to a year ago. Companies reporting annual revenues in the “$500,001 to $1 million” range hit 15%—up 6 percentage points from 2021.
Four percent of participants reported combined-location annual revenue exceeding $30 million for the most recently completed fiscal year.
But compared to one year prior, changes in annual revenue for the most recently completed fiscal year (all locations combined) provided more perspective. About 40% of companies experienced an increase in annual revenue, down 16 percentage points from 2021. Participating companies with decreases in annual revenue hit 29%, up 20 percentage points from last year.
Profits completed the picture. About 10% of participants in this 2022 study reported they did not make a profit (multiple locations combined) in their most recently completed fiscal year—nearly double last year’s percentage. Only 28% of participants this year (multiple locations combined) reported increased profits, compared to 49% of last year’s participants. Yet, 5% “increased by 100% or more.”
Click here to view the 2022 State of the Cannabis Dispensary Industry Report.
