Will ‘green state’ retailers benefit from marijuana legalization?
Colorado and Washington were the first states to legalize the recreational use of marijuana; Alaska, Oregon and Washington, D.C., followed suit in the 2014 midterms. Though Boulder, Colo.-based Gasamat Oil Corp. (which operates Smoker Friendly stores) isn’t in the business of selling marijuana at its Colorado locations yet, COO Dan Gallagher told The Denver Post it was certainly an option the 90-store operator is considering.
“It would be a logical move for us to consider,” Gallagher said. “We sell gas and tobacco products, which are highly regulated sectors. We’re comfortable operating in a regulated environment.”
With economist Stephen Easton estimating legalized marijuana could be an industry of $45 billion to $100 billion per year, it’s something many retailers in these pot-friendly states are likely considering.
“The stars are certainly aligned, and I think the convenience channel makes the most sense, provided the legislation permits it,” one multistate retailer told CSP, speaking on the condition of anonymity. “We are already battle-tested in terms of our ability to validate other age-restricted items.”
For all of marijuana’s potential profits, the fact remains that the substance is still illegal on the federal level. Although the government has largely left Colorado and Washington operators alone, many c-store operators are understandably hesitant.
However, as Smoker Friendly and others have proven, there’s still ample opportunity for retailers in pot-friendly states to benefit. Back in March, Smoker Friendly opened the first of many planned marijuana accessories stores. These Glass Werx locations sell pipes, bongs, grinders and vaporizers. Gallagher says the company plans to open up to 10 locations in the next year.
This opportunity is not limited to retailers in Colorado, Washington, Alaska, Oregon and D.C. With 19 additional states having legalized medical marijuana, many retailers have seen a boost in potential marijuana accessory sales—everything from rolling papers to $100 “dry” vaporizer pens.
It’s a prospect No. 86 on the Top 101 plans to fully explore.
“We’re really kind of equal opportunity,” Gallagher said. “Now that cannabis is more mainstream, it’s a concept we’d like to expand on fairly rapidly.”
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