With the COVID-19 pandemic disrupting everyday life around the world, the latest estimates expect peak-virus to occur within the next eight weeks in the United States, declining after that. That said, its difficult to predict how long the situation will last and what sustained effects it will have on the cannabis industry. Thus far, cannabis retailers across the U.S. have experienced a surge in sales as medical patients, and adult-use customers stock up in preparation for potential store closures. In Washington, the average basket size per customer and gross sales have spiked, with sales increases upwards of 30% reported. In Colorado, at least one dispensary chain has closed thus far while most remain open with a keen eye on the latest CDC recommendations. In San Francisco, all non-essential businesses were ordered to close, yet the Department of Health has allowed cannabis dispensaries to stay open. Cannabis retailers have adapted quickly to the situation with new approaches to ordering and fulfillment that work to mitigate any risks to their customers and employees.
Outside of retailers, specific sectors of the cannabis supply chain have been or likely will be affected by production delays in China, this includes manufacturers of vaporizer cartridges, packaging, cultivation and extraction equipment, and more. The latest estimates we've seen predict that China's economy could take up to six months to recover, disrupting the flow of raw materials and supply chains globally. Considering the current microeconomic downturn investment capital flowing into the cannabis industry will likely slow to a trickle. For cannabis operators with tight balance sheets, its triage time. During this webinar, we will have an in-depth discussion on the current state of the industry and which actions operators should consider to weather the storm and beyond.