Jackpot! Nevada Cannabis Sales Rebound
Akerna (Nasdaq: KERN) reports a recovery in Nevada's cannabis sales following a significant decline due to COVID-19 lockdowns. Sales dropped 74% on average from January/February but rebounded as restrictions eased, with a 52% increase in sales noted in May. As casinos reopened in June, cannabis sales returned to pre-COVID levels, with a 26% increase compared to May. Despite a slower recovery compared to other industries, Akerna remains optimistic about the cannabis market's overall trajectory.
- 52% increase in average daily cannabis sales from April to May.
- Daily cannabis sales returned to pre-COVID numbers in June.
- 65% increase in average ticket size to $79.72 during lockdown.
- 74% average daily sales decline from January/February due to COVID-19 restrictions.
- Estimated 35% potential loss in total sales between March 21 and May 31.
DENVER, Sept. 29, 2020 /PRNewswire/ -- According to Business intelligence from Akerna (Nasdaq: KERN), an enterprise software, leading compliance technology provider, and developer of the cannabis industry's first seed-to-sale enterprise resource planning (ERP) software technology (MJ Platform®), suggests that Nevada cannabis sales are finally on the path to recovery.
For retailers in the state using the MJ Platform, cannabis sales first started to decline around March 21, following the implementation of lock down restrictions put in place by the state and local government. Average daily total sales declined by
Though average daily sales declined, that was due to adult-use customers opting to stock up on cannabis rather than make multiple trips to retail stores. When compared to January/February averages, there was a
In May, cannabis sales started to recover, which could be attributed to the reopening of restaurants and shops. Adult use sales experienced a
As the state's casinos began to open back up in June, daily average cannabis sales returned to pre-COVID numbers. Adult-use retailers experienced a
"Sales have rebounded past pre-COVID numbers," said Ryan Ballman, Business Intelligence Engineer, Akerna. "Though the state's economic rebound has been a bit slower than the rest of the country, Nevada's cannabis industry is still well on its way to making a full recovery."
About MJ Freeway
MJ Freeway is more than software as a service. Its flagship solution, MJ Platform, includes Platform Insights. Now operators, investors, and regulators can access the industry's largest and most statistically relevant database to drive data-driven business decisions.
Platform Insights provides:
- The greatest statistical relevance across countries
- Normalized data (not farmed from various disparate POS platforms)
- Full cannabis supply chain data
- Business insights founded in category management methodology
Platform Insights can eliminate the guesswork and provide answers to questions like:
- What is the gross margin return on inventory?
- What SKUs should be carried?
- How do basket adjacencies influence discounting and retention strategies?
- What does a medical market look like a year or five years after decriminalizing cannabis?
Click here for more information about MJ Platform.
About Akerna:
Akerna is a global regulatory compliance technology company. Akerna's service offerings include MJ Platform®, Leaf Data Systems®, solo sciences tech platform and Ample Organics. Since its establishment in 2010, Akerna has tracked more than
About the Akerna Flash Report:
Flash Report is a look at buying trends in the cannabis market as captured by Akerna's MJ Freeway subsidiary. MJ Freeway provides operators with MJ Platform, the industry-leading solution for regulatory compliance technology, from seed-to-sale-to-self. Some instances of the flash report may include business intelligence derived from Akerna's family of companies, including Ample Organics, Leaf Data Systems, solo sciences, and Trellis.
**Data is derived from MJ Platform, the leading provider of cannabis compliance software for the marijuana industry. Reporting Data is obtained from operators using Akerna's MJ Platform solutions. Increases are relative to the prior period. Additional business intelligence data sources may include proprietary tools used by Akerna's family of companies.
Forward-Looking Statements:
Certain statements made in this release are "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. When used in this press release, the words "estimates," "projected," "expects," "anticipates," "forecasts," "plans," "intends," "believes," "seeks," "may," "will," "should," "future," "propose" and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. Such forward-looking statements include but are not limited to statements regarding anticipated increases in cannabis sales in relation to the Labor Day weekend, sustained increases in demand for cannabis and the ability of the MJ Platform team to help operators make decisions through analytics and reporting. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of significant known and unknown risks, uncertainties, assumptions, and other important factors, many of which are outside Akerna's control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Important factors, among others that may affect actual results or outcomes, include (i) Akerna's ability to maintain relationships with customers and suppliers and retain its management and key employees, (ii) changes in applicable laws or regulations, (iii) changes in the market place due to the coronavirus pandemic or other market factors, (iv) and other risks and uncertainties disclosed from time to time in Akerna's filings with the U.S. Securities and Exchange Commission, including those under "Risk Factors" therein. You are cautioned not to place undue reliance on forward-looking statements. All information herein speaks only as of the date hereof, in the case of information about Akerna, or the date of such information, in the case of information from persons other than Akerna. Akerna undertakes no duty to update or revise the information contained herein. Forecasts and estimates regarding Akerna's industry and end markets are based on sources believed to be reliable; however, there can be no assurance these forecasts and estimates will prove accurate in whole or in part.
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SOURCE Akerna
FAQ
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