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Which Is More Profitable: Kale Or Cannabis?

Recreational cannabis boutiques and dispensaries are outperforming the average Whole Foods location - and making more than five times as much revenue per square foot as the average department store, according to new data collected by the Marijuana Business Daily.

Revenue-per-square foot acts as a measure of how efficiently a retailer is using their assets to generate sales, taking into account the size of the operation, the cost of the product, and overall sales levels.

The MBD chart looked at the amount of money various types of businesses were bringing in per square foot of retail space - and found that dispensaries and other marijuana-related businesses fell somewhere between the high-end grocery retailer, and Costco.

As a point of comparison, a typical Apple Store brings in approximately $4,800 in annual revenue per square foot - a reflection, the MBD points out, of both the priciness of the offerings, and the relatively small size of most Apple stores. At the bottom of the pack is the average department store, which offers more affordable goods in sprawling storefronts.

The average revenue per square foot, however, can vary wildly depending on where a dispensary is located: the strict zoning rules imposed on cannabis companies have forced many businesses into buildings that are either big, or too small, meaning "their annual revenue per square foot is therefore lower than the industry's average," according to the MBD.

Check out the chart below, or real the MBD's full analysis here.


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