Planet 13 Cannabis Superstore Earns 2.5 Billion Rubles in Three Months
In just three months during the second quarter of 2023, Planet 13, the world’s largest cannabis retail chain based in the United States, earned $25.8 million (2.5 billion rubles). Despite this impressive figure, the store’s revenue dropped by 9% compared to the same period in 2022, and the company’s gross profit decreased by 14% to $11.88 million (1.2 billion rubles). By the end of the quarter, Planet 13’s losses more than doubled, reaching $4.35 million (423.6 million rubles).
Falling Cannabis Prices Impact Profits
Planet 13 staff attribute the negative trend to falling cannabis prices. For the first time since recreational cannabis was legalized in Nevada, the price of cannabis dropped last year. The average retail price for 1 gram of cannabis fell by 19% to $7.18 (699 rubles), while the wholesale price dropped by 27%. As a result, cannabis sales decreased despite an actual increase in trade volume. For example, in April 2023, store revenue in Nevada fell by 4% to $72 million (7 billion rubles).
Nevertheless, Planet 13’s co-CEO Larry Scheffler gave a positive assessment of the company’s performance in the second quarter: “We increased our market share in Nevada, and our brands were once again among the top sellers in all major product categories. Overall, the first half of the year was successful for us.”
Planet 13 to Open Cannabis Superstore in Illinois
In 2023, Planet 13 plans to open a cannabis superstore in Waukegan, Illinois. To do this, the company acquired shares in Planet 13 Illinois, which holds a license to sell cannabis in the state. The new store will be located in a popular shopping center near a casino, so the owners expect high sales revenue from cannabis products.
Expansion Plans and In-House Production
So far, Planet 13 has opened only two retail locations: one in Las Vegas, Nevada, and another in Santa Ana, California. The company’s management plans to build four more stores in Florida. With the new Illinois location, the total number of Planet 13 stores will reach seven. In addition to retail sales, the company also produces cannabinoid products from cannabis grown on its own farm, allowing it to attract customers with competitive prices.