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A good neighbour? Cannabis shops lift nearby revenue, but not for everyone

An adult-use cannabis shop opening may bring customers to neighbouring businesses too, according to an Illinois preprint covering 2021–2024 that Marijuana Moment reported on last week. The authors estimated roughly 6.8% more customers and 7.5% more revenue; food, drink and everyday essentials benefited more, especially in walkable areas. But this tale of friendly shopfronts has an awkward detail: the statistically significant gains were found among chains, not independent establishments. The work remains a preprint based on observational data from a single state; the same result cannot be promised to every street.

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Primary sources

SSRNLike a Good Neighbor? Demand Spillovers from Recreational Cannabis Dispensary Openings to Nearby Retail EstablishmentsOpen source ↗Marijuana MomentOpening Legal Marijuana Dispensaries Provides An Economic Boost For Nearby Businesses, Study ShowsOpen source ↗

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