Hand sanitizer. Toilet paper. Cannabis. What do they have in common?
From a consumer standpoint, we can’t get enough of them. Right now they’re all flying off store shelves as everyone tries to prepare to shelter in place and self-isolate as we face the very real threat of the coronavirus pandemic.
As cannabis users stock up for potential quarantines, or simply light up to find relief and calm anxiety during these extremely trying times, dispensaries are doing booming business. To put that in perspective: Mid-March cannabis sales blew past average numbers for 4/20, the unofficial cannabis holiday, by 50%.
Sales are through the roof
Certain industries are recession proof. They simply aren’t impacted by volatile shifts in the market. This is definitely true with legal cannabis. Several cities around the country have determined that dispensaries are essential businesses during coronavirus shelter in place orders, meaning storefronts can remain open.
Accordingly, as people deal with a number of new, pandemic-related difficulties, in states like Michigan, Colorado, Oregon, California, Washington state and Nevada, cannabis sales spiked at record levels mid-March, and the average order size also increased.
Here are a few data points to explain just how explosive cannabis sales have been across the country:
- Cannabis data intelligence firm Headset showed sales skyrocketed 159% on March 23rd compared to the same day in 2019.
- Oregon sales were 75% higher than average on March 23rd, and average single order totals also increased.
- Sales in Washington state jumped 33% on March 22nd, up from the previous week.
Meanwhile, Michigan’s Gov. Gretchen Whitmer signed an executive permitting all licensed cannabis retailers to provide home delivery and curbside product pickup. Prior to this, retailers had to be licensed for delivery, and licenses are not easy to get. These delivery options are good because unlike toilet paper, there is a robust underground market for cannabis. If dispensaries closed, that demand would immediately be filled by unlicensed delivery services. This could be dangerous considering those services don’t test their cannabis. So, consumers won’t know where the cannabis comes from, nor will they know who’s been handling or breathing on their product.
In light of increasing demand and favorable new regulations like those in Michigan, dispensaries in general will have to quickly adapt to accommodate customers during the pandemic by boosting delivery and pickup options. Online delivery marketplace Eaze’s order volume jumped 38% on March 23rd, compared to the annual average.
Much like Amazon Fresh is out of produce because everybody is buying online, we’re also seeing an uptick in interest in cannabis products. According to the aforementioned Eaze data, deliveries to first-time customers spiked more than 50%. This surge of interest could continue for the foreseeable future as people source new ways to deal with stress and other maladies related to the coronavirus pandemic.
Americans can purchase pet supplies, medication and even alcohol online. Why not cannabis?
Clearly people want cannabis during this public health crisis. In fact, I don’t think there’s ever been a better time to allow online shopping for cannabis products. We shop online for everything else: Why wait in line to get cannabis? Especially when it’s actually dangerous not to be at a socially responsible distance from one another.
Further, the coronavirus is already reshaping the retail industry. People will need to go online to buy necessities rather than go out to shop at their favorite brick and mortar stores. It won’t be long before cannabis retail purchases need to adapt in the legal and digital landscape as well.
Now more than ever there’s a strong demand for cannabis delivery services. It’s an open question for now, but it’s certainly possible that in the future more cannabis sales will be done online.
That’s a good thing. Especially, for Six Labs.
We built the future of our business to be mail-to-order direct to consumers, and we’ll meet the market wherever it’s headed.
Joe Ori. Trial Lawyer | Cannabis Advocate | Entrepreneur |Father of four Doing “the right thing,” my way.
