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Indie Retailing 101: The Numbers are in: Private Label = Retail Success


Numbers Don't Lie

Burning Tree has been working closely with cannabis retailers across North America since 2019. We have supported retailers with a comprehensive private label line as well as custom product development and sourcing, packaging, and retail support. Over that time we have worked with some of the best in class brands. Anecdotally we always thought we were helping our clients reach the right customers through an elevated brand story told through compelling, premium product. However, now that we've finally crunched the numbers, we can say this with confidence.



Private Label Products = Retail Growth

This a bold statement but it is accurate and it should alarm you if you aren't already leveraging private label or custom products to augment your retail brand experience.


Based on Burning Tree's own retail data sets, of the customer's employing private label products, 29% have actually expanded their retail offering in spite of a highly challenging market where margins have plummeted over the past 4 years and cannabis retail has contracted sharply. It doesn't end their, as the same data also shows 53% have at least maintained their retail footprint with only 12% contracting, but still in business fighting off the retail pressures.


The Link (aka Causality)?

We can't unequivocally prove that employing private label and custom products was a direct cause of our customer's growth (without a full blown study which is beyond our research budget at the moment).

However, we do have some anecdotal thoughts on the matter which bear discussion:

  • Employing private label products builds a unique retail brand experience that can cultivate return customers and brand loyalty

  • Cannabis stores that know private label products are important to their retail mix are already savvy and well seasoned retail operators

  • Well designed private label products can be a highly unique offering and augment & offset your revenue from the falling margins in cannabis sales


Now What?

If you haven't already, jump in (with two feet) to a private label product line. If you already have a branded lighter or maybe papers, contact us at Burning Tree to expand you line with lots of the new product and supplier's we've added to the mix.


What's the Toke Away?

  • 29% - Burning Tree's cannabis retail clients who have expanded their retail footprints over the past 4 years.

  • 53% - Burning Tree's cannabis retail clients who have maintained their retail footprints over the past 4 years.

  • 300 - The MOQ for branded BIC lighters (the most accessible private label product we carry)

  • 1/3 - The percentage of cannabis stores across Canada predicted to close after January 2022.

Interested to Learn More?

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