Be Kind, Please Unwind: Why Would Anyone Buy CBD From A Video Store?

Major retailers have begun to carry CBDKroger Co KR and CVS Health Corp CVS are two names that have entered the fray. 

These companies are not the only ones finding value in carrying CBD. Independent stores and businesses outside of the conventional cannabis sales sphere have entered the market too. 

They range from coffee shops to video rental, clothing and shoe stores.

This begs the question: why would someone purchase CBD from a retailer with no seeming connection to CBD over a dispensary? 

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A Great Business Opportunity

Many retailers are choosing to offer CBD to capitalize on a growing market.

A 2018 report from Brightfield Group forecast that the hemp-derived U.S. CBD market will grow to $22 billion by 2022. The would represent a 40-fold gain from 2018 expectations.

Matthew Broderick, marketing coordinator for SoCal Farms, has a theory as to why unconvential CBD retailers are popping up.

"It's also a great opportunity for local businesses to diversify their income. Small shops and businesses are happy to accept an alternative revenue stream that helps them compete with big box stores."

The convenience is even more apparent when CBD can be added to products the store already markets, Broderick said. This could be especially true if the FDA makes any policy changes following a late May hearing with the industry. 

Getting involved in this burgeoning market can stimulate sales, said Matt Scillitani, digital marketing associate for the CBD website Remedy Review

Slick marketing techniques have followed CBD's wider emergence in the market.  

Some examples Scillitani gave include shoe stores offering CBD to prevent heel chaffing as well as clothing stores using CBD to help associate more with certain demographics and lifestyles.

A More Comfortable Entry Point 

"Most of the time, people who buy CBD from these places are just trying it for the first time and then make future purchases from wellness stores," Scillitani said. 

First-time and newcomer shopping were mentioned as being sales factors by several retailers Benzinga contacted.

The look of dispensaries may be off-putting to some, said SoCal Farms' Broderick.

"To many, dispensaries, which often have blacked-out windows or ask for ID at the door, are still too daunting to enter, even for those who would benefit from CBD products."

Broderick said finding CBD in standard shops may help to demystify cannabis for some.

"Stocking CBD products in regular stores and unconventional locations normalizes CBD and builds trust for the product in the community. It helps to separate it from cannabis and the stigma attached to it."

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Posted In: Brightfield GroupCBDRemedy ReviewSoCal FarmsCannabisCrowdsourcingTop StoriesMarketsInterviewGeneral