This year the 4th of July falls on a Saturday and that would normally mean big parties and celebrations. However, with the COVID-19 pandemic in full force, fireworks displays have been canceled and beaches closed in many states. The front page of the Houston Chronicle asked everyone to just stay home. What’s open? Dispensaries.
Cannabis software company Akerna (NASDAQ:KERN) said that it expects the essential services of cannabis will continue to benefit as other businesses struggle to open.
“For the first time in the past five years the 4th of July falls on a Saturday,” said James Ahrendt, Business Intelligence Architect, Akerna. “We anticipate sales will start to increase Thursday, July 2, with an 80% increase over daily averages culminating in an 87% increase over average daily sales over the holiday weekend.”
In 2019, when the 4th of July fell on a Thursday, there was a spike in sales the preceding Friday and Saturday, as well as the day leading up to Independence Day. However, not much change in sales the day of.
Sales expectations for the 4th of July. Akerna anticipates:
- An 87% increase over average daily sales 7/2-7/4
- Sales will start to increase July 2, with 80% (1.8X) increase on daily average sales for 2020
- Friday, July 3, will be the highest-grossing day of the year surpassing 4/20, which fell on a Monday. Modeling shows July 3 sales will be 100% (2X) increase on daily average sales for 2020.
- Saturday, July 4, will see elevated sales, similar to Thursday, with 80% (1.8X) increase on daily average sales for 2020
Top Sellers for the 4th of July:
- Flower 45% of sales
- Cartridges / Pens 35%
- Concentrates 11%
- Edibles 9%
The National Retail Federation expects 76% of consumers plan to celebrate Independence Day. Those who do have plans for the holiday expect to spend $76.00 on average in celebration of the 4th of July. The average cannabis order total will be close to $100 and an increase of $11 than the avg order total for all other days this year, which range in the area of $87.12 nationally.
On the Grill:
Historically people spend more than $371 million on chicken during the two weeks leading up to the July 4 weekend, which amounts to about $37 million a day. Cannabis sales are expected to reach over $260 million in three days, which is about $86 million a day.
Historic July 4th Meat Sales:
- Chicken $371 million
- Pork $271 million
- Shrimp $85 million
- Salmon $48 million