D.C. medical marijuana sales soar, but many dispensaries struggling

While overall medical marijuana sales in Washington, D.C., have nearly doubled since January, dispensaries that converted from “gifting” shops are facing significant struggles.Cannabis sales in the District of Columbia increased from $4.6 million in January to nearly $9 million in May, according to the Alcoholic Beverage and Cannabis Administration (ABCA).

ADVERTISEMENT In that time, the district has cracked down on the gifting shops that were authorized under voter-approved Initiative 71, which legalized the recreational possession, consumption and sharing of marijuana among adults while outlawing sales of the drug.The measure allowed stores selling non-marijuana items to include a “gift” of cannabis.

Those retailers had until March 31 to open as licensed medical marijuana facilities or be shut down.“There were 250-plus at the peak,” said Robbie Martin, president of the DC Cannabis Business Association.

“Now, unlicensed brick and mortar is uncommon to see around town.” There are currently about 60 licensed medical marijuana retailers in the district, up from roughly 10 before the gifting shops started transitioning a few months ago.Increased competition from the newly licensed dispensaries, the lingering presence of unlicensed shops offering cheaper products and regulatory challenges have combined to make turning a profit difficult.

High hopes, hard times in D.C.“The first 90 days have been a tarantula,” said Terrence White, CEO of Monko, a former gifting shop that spent about six months converting to a licensed MMJ dispensary.

White said that business is down about 250% since he transitioned Monko, with sales dropping from about $300,000 per month to barely $100,000.Patient participation is lagging, with only 53,000 transactions among the district’s roughly 60 dispensaries, White said.

“People are not really excited about the D.C.medical market,” he said.

“It’s been kind of...