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Growing number of cannabis dispensaries leads to drop in average sales per store

FILE - In this Dec. 13, 2017, file photo, a marijuana plant grows under artificial light at an indoor facility in Portland, Maine. State officials have deemed dozens of applications to run marijuana businesses to be complete, a major step on the way to the first legal sales of the drug for adult use. Mainers voted in favor of legal recreational marijuana use and sales in 2016.
Robert F. Bukaty
/
AP file
In this Dec. 13, 2017, file photo, a marijuana plant grows under artificial light at an indoor facility in Portland, Maine.

Market saturation in Maine's recreational cannabis market is contributing to a drop in average revenue per store, according to a new report from state regulators.

The Maine Office of Cannabis Policy analyzed three years of retail sales data for the week surrounding April 20, the unofficial marijuana consumption holiday.

It found that total weekly sales remained steady this year compared to last, at just over $5 million.

But the report said average sales per store have "plummeted," falling 17%.

The office said that's due to increased competition as the market gets more crowded. Since last year, the number of recreational cannabis retailers has jumped by nearly 20%.

Total retail sales in Maine hit a new high last year at over $240 million, and data through July indicate the state is on a similar trajectory this year.