Cannabis operators strive to get things right as 4/20 approaches

As more retailers and brands zero in on a strong return on investment for April 20, Weed Week can quickly evolve into a make-or-break scenario for operators.Perennial concerns over systemwide outages, inventory and workforce management as well as easing in-store and e-commerce traffic typically peak around this time of the year.

ADVERTISEMENT And for good reason.The days leading up to and including 4/20 are the industry’s busiest sales window.

According to retail management platform Sweed, gross sales jumped 58% from April 15, 2024, to April 21, 2024, while product units sold increased 60% from the previous week.And conversely, research reviewed by MJBizDaily indicates that, in the days and weeks following 4/20, sales fall dramatically across the board and in markets across the country as consumers stock up and deep discounts dissipate.

All of these variables and more make it incredibly important to get things right leading up to the big day.“The weeks following 4/20 demonstrate a predictable and pronounced dip in consumer activity, underlining that there is no makeup day for poor execution on 4/20,” Sweed co-founder Rocco Del Priore emphasized.

‘What keeps me up at night’ While good times, deep discounts and strong business are to be expected on 4/20, so are e-commerce outages and other technology glitches that could wreck celebratory vibes and derail financial forecasts.The Travel Agency (TTA), which operates three cannabis stores in New York City, was among a group of nationwide retailers last year whose Dutchie point-of-sale (POS) software crashed for hours during peak traffic.

On April 20, 2023, a cascade of failures between Dutchie’s systems and its retail customers’ e-commerce menus led to widespread outages that affected hundreds – if not thousands – of stores in the United States and Canada. ADVERTISEMENT “This will be our third 4/20,...