A Northampton dispensary is the first adult-use cannabis retail store in Massachusetts to close, but industry leaders say it could be the first of many.
The Source, based in Northampton, confirmed to the Business Journal earlier this month that it plans to close less than a year after opening in April. Two other cannabis CEOs who spoke with the Business Journal said it wasn’t a surprise to hear that a dispensary was shutting its doors.
“It’s sort of the way the markets have been going,” Edward Dow, CEO of Solar Cannabis Co. said. “Just the sheer amount of licenses and the saturation of the market and the oversupply, it’s going to lead to some tough business decisions.”
The Source is one of 12 dispensaries in Northampton, a 30,000-person city, where there have long been concerns about market saturation.