U.S. and Canadian marijuana retailers are discounting their products more and more, forgoing billions of dollars in revenue since the launch of adult-use markets in recent years.
It’s easy to blame recent events such as the COVID-19 pandemic for the price shaving.
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But the increase in discounting, according to Krista Raymer, the founder of Toronto-based retail cannabis consulting firm Vetrina Group, likely reflects the rapidly growing number of adult-use brands and products available to retailers.
This has left retailers with a growing number of product options and rising stocks of unsold goods at a time when recreational sales, in particular, have slowed in a number of markets.
In response, retailers are relying on a variety of promotions, discounts and markdowns to boost sales and shrink bulging inventories – this at a time when overall consumer inflation is surging, having jumped 8.3% annually in April.
Raymer believes the cannabis
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