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How Are Michigan Pot Businesses Doing During COVID-19? It Depends On Who You Ask

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How Are Michigan Pot Businesses Doing During COVID-19? It Depends On Who You Ask

At first, the coronavirus outbreak seemed to help Michigan’s fledgling cannabis industry.

The spread of the virus and government restrictions inspired stockpiling. Pot sales surged across the state, leading to some of the busiest days shops have seen since opening.

Profits peaked just after Michigan reported its first case, with recreational sales soaring more than 20% and medical sales 27% the week of March 16.

A Turn Of Events In Michigan 

The run was short-lived. By the week of March 23, the shelter-in-place order took effect, marijuana businesses were ordered to deliver or fulfill orders curbside and a spike in unemployment curbed discretionary spending. Sales nearly halved at some shops, according to The Detroit News.

Crain’s reported a 20%, $1.2-million dip in recreational sales statewide.

The losses may not have been felt evenly. Forty-five of the state’s 72 retailers boast a competitive advantage: approval for home delivery.

Still, the industry at large may see a silver lining. Parks, entertainment venues and commodity shops that previously competed to provide recreation were forced to close, and cannabis businesses were granted special privilege to remain open.

“That gave us more credibility,” Greenhouse co-owner Jerry Millen told The Detroit News. “It speaks volumes that we’re allowed to stay open.”

Coronavirus – Latest News & Data

The Long Haul In Michigan 

Ahead of the outbreak, monthly recreational sales more than doubled between February and December. Altogether, the category’s first three months brought $31.6 million in sales.

Assuming the COVID-19, outbreak inhibits quarterly growth, the industry is on pace to notch $126.4 million year-over-year — well below the eventual $1.4 billion to $1.7 billion projected by Marijuana Business Daily

Related Links:

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