6/12/2023 0 Comments Rebelle massachusettsToo many licenses made for too much competition. There are many suggestions as to what happened to the Massachusetts market. However, it’s obvious by Pleasantrees’ pitch that not everyone’s enjoying the green rush. Sales topped $3 billion just eight months later. In 2021, there were just 194 marijuana retailers that generated more than $1.3 billion in sales. The state has continued to add retail licenses, with 456 licensed retail operators now licensed and 28 more pending. $11/gram in the second quarter (down 12% sequentially). Retail prices, as per the official state data, also has slid downward to $9.70/gram on average in the third quarter (-29% yoy) vs. Cantor Fitzgerald analyst Pablo Zuanic, using Headset data, noted that sales growth in the state has consistently slowed in year-over-year terms (+1% yoy in 3Q22 vs. The Massachusetts market has slowed considerably since it first opened up for business. But it isn’t difficult to see that the monthly sales are not much more than the rent. It has a co-located processing license and an additional 10,000 square feet of warehouse space suitable for cannabis or noncannabis use. This dispensary opened in March 2022 and is located immediately across the street from the new River Valley Co-op development. The rent there is a whopping $40,580 a month. Not as sweet is the Easthampton location, which makes even less revenue at an estimated $75,000-$100,000 a month. So it certainly sounds like a sweet spot with potential. It opened in August 2021 directly adjacent to the University of Massachusetts (main campus) and in close proximity to Amherst College. With overhead costs for employees, insurance, security, etc., this location doesn’t look as if it’s making much profit. Pleantrees said the Amherst location makes revenue of $100,000-$150,000 a month, but the lease is $34,901 per month. Both businesses are in the early stages and “have shown promising signs of sales growth, but require proper marketing and operational efficiencies.” The email stated that no down payment is required, and both businesses are fully staffed and operational. Pleasantrees said it is selling the locations because it wants to focus on Michigan, where the company has five locations. The Michigan-based cannabis company sent out an email last week looking for someone to take over the leases at two operations in Massachusetts: one in Amherst and one in Easthampton.
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