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Holiday Sales and the Subsequent January Dip
The holiday season is one of the busiest, and most expensive, times of the year. For cannabis retailers, this season kicks off with Green Wednesday – the major cannabis shopping day before Thanksgiving – and continues throughout Thanksgiving, Christmas, and the New Year celebrations, all generating a profitable surge in cannabis sales. However, once January gets into full swing, cannabis retailers, like many traditional retailers, often experience a slow sales period, with customers recovering from the financial strain of holiday spending and cutting back on recreational purchases, like cannabis.
Fortunately, for cannabis retailers, the dip in sales doesn’t last long as February – and the season of love around Valentine’s Day – provides a noticeable momentum driver for cannabis sales. According to data from Sweed and Custom Cones USA, Valentine’s Day is a key driver in reigniting consumer love for cannabis, with more people purchasing cannabis during the weeks leading up to the holiday.
Promotional Activities Drive Revenue
Sweed data indicates that cannabis retailers increased promotional activity during February compared to January. For instance, February 5th through the 19th of 2023 saw 22% more promotions and a 34.5% increase in promotional revenue compared to January 1st through the 15th. As for 2024, February 5th through the 19th saw 14.4% more promotions and an 11.9% increase in promotional revenue compared to January 1st through the 15th. The data emphasizes the trend that customers are once again willing to spend on recreational items, like cannabis, after the brief hiatus in January. The data also indicates that cannabis retailers are not only noticing the increase in sales, but are also responding to it. Promotional efforts like Valentine’s Day product bundles and discounts bring more customers back to the dispensary.
During the February sales spike, flower remains the top-selling category. Sweed data shows that from January 24th to February 15th of 2024, the top-selling categories were flower at 37.77%, followed by cartridges at 13.51%, edibles at 12.12%, vapes at 9.63%, and pre-rolls at 5.86%. Although the pre-roll segment took up the smallest percentage of sales in 2024, Headset data analyzed by Custom Cones USA shows that pre-rolls experienced significant growth compared to 2023. The first two weeks of February 2023 saw an increase of 12.6% in pre-roll sales, equating to $10,464,366, compared to the first two weeks of January according to Headset and Custom Cones USA. This trend continued into 2024, where the first two weeks of February saw an increase of 10.1% in sales, equating to $9,955,083, compared to the first two weeks of January.
Flower Power and the Rise of Pre-Rolls
The pre-roll segment has many different products, and while the majority of pre-roll sales increased in the two weeks leading up to February, infused and hybrid-single strain products substantially experienced an increase. In 2023, infused pre-rolls saw 14% more sales, totaling $4,502,591. In 2024, infused pre-rolls saw 13.6% more sales, totaling $5,640,493. Hybrid-single strain pre-rolls saw 15.9% more sales in 2023, totaling $5,333,169, and in 2024 saw 8.2% more sales, totaling $3,190,513.
February, especially Valentine’s Day, is quickly emerging as a popular shopping period for cannabis retailers. Cannabis is increasingly finding its place alongside traditional Valentine’s Day presents like chocolates and flowers. While Flower remains the top-selling category, other segments, like pre-rolls, are quickly growing in popularity. This year, customers can expect cannabis retailers to continue offering increased promotional discounts and product offerings.
Sweed, the leading enterprise retail technology platform for the cannabis industry, is empowering dispensaries across the United States to help drive promotional discounts and more. Custom Cones USA, the cannabis industry experts in pre-rolls, packaging, and manufacturing solutions, offers a wide range of products and accessories for cannabis cultivators and operators. Together, these industry leaders are ensuring that cannabis retailers are well-equipped this Valentine’s Day season.
By Sweed & Custom Cones USA
