Economics 101 teaches us about supply and demand, but you don’t need a business degree to see that the supply of recreational marijuana retailers is way lower than the demand in California. For every 100,000 residents, there is less than one store available that sells adult-use product, according to recent data released by Marijuana Business Daily. Furthermore, most of those stores are crammed into a few select areas, due to the fact that Prop 64 allows local governments to opt out of allowing sales or cultivation, though they are not allowed to ban personal use. To be more precise, there are 482 cities in California, and to date, only 70 of those cities allow retailers to sell recreational marijuana.
Comparatively speaking, this puts California not only behind its own estimates for store fronts and sales figures, but also behind its peers. It’s been nine months since recreational marijuana sales began in the state. At the nine-month mark in Colorado, the state had awarded 242 licenses. Considering the state has a smaller population than California, this put the total at 4.3 stores per 100,000 residents. Now, Colorado has 10 times the amount of stores per capita, while Oregon currently has 15 times more recreational marijuana stores per person. Continue reading