Retailers of Marijuana in Springfield Anticipate a “Tough Year” in 2023!

Marijuana retailers in Springfield see 2023 as a 'hard year'

Five years into its legal existence, Massachusetts’ cannabis sector is on the verge of $4 billion in sales, but the good times may be coming to an end.

Representatives of Springfield’s marijuana businesses warned City Councilors earlier this month that falling pricing due to a substantial rise in wholesale supplies and increasing retail competition will put pressure on their bottom lines.

Insa’s chief attorney, Steve Reilly, has remarked, “We expect 2023 to become very challenging.” Insa runs a recreational marijuana store on West Columbus Ave in Springfield’s Metro Center and a medical cannabis dispensary in East Springfield. The City Council’s Economic Development Committee held a hearing, where he provided testimony.

According to Riley, “we foresee a very tough retail environment for 2023” because “I’m not sure Massachusetts has hit the appropriate balance between supply and demand on merchandise.” “We are proceeding with extreme caution in the Massachusetts market.

Jamie Ware, senior vice president of Holistic Industries, which owns the Liberty cannabis store on Boston Road in Springfield, shared his worries about the Massachusetts market.

She stated, “Market compression is a significant problem, and we’re just going to try our best to continue serving the patients and consumers that we do in Massachusetts,” but that the company anticipates a challenging year in 2023.

Marijuana retailers in Springfield see 2023 as a 'hard year'

Both the Insa and the Liberty businesses presented their wares to the public in 2021. According to the state’s Cannabis Control Commission, the average retail price of a gram of marijuana flower was $13.29 in November of that year. After a year, the median price dropped to $8.07.

6 Brick’s, which opened in September as Springfield’s newest marijuana retail establishment, is located elsewhere. Payton Shubrick, the company’s founder, and CEO emphasized that the shop is not affiliated with a larger corporation with locations in other states.

Shubrick noted, “I am not vertically integrated,” and her company is “still in the phase of brand awareness and customer acquisition.”

City Councilor Melvin Edwards, who chairs the Economic Development Committee, said he would encourage his colleagues to reconsider the zoning law that currently prohibits marijuana stores in Springfield from being open past 9 p.m. after hearing the concerns of business owners who want to remain open later.

Edwards remarked, “This industry needs help.” If you pay taxes here and hire locals, we appreciate it.

In Massachusetts, adults can buy marijuana with a 20% effective tax rate. The sum of all taxes paid in 2015 was $284 million.

Springfield also charges a 3% impact fee, which, as of last November, had generated $798,000. This money is intended to help communities hit hard by the war on drugs. This month, City Council President Jesse Lederman formed a special committee to make recommendations about how to allocate the funds.

Every border state except New Hampshire has opened cannabis stores, so it’s probable that there will be fewer consumers from out of state this year. In 2018, Massachusetts was the only state east of the Mississippi where adults could legally purchase marijuana for recreational use.

Since the state established new legislation last year, social consumption sites can legally open for business in the Commonwealth. The Cannabis Control Commission has suggested regulations that would allow for a trial run in Springfield.

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