American Mall shopping has seemed to be fading away due to companies like Amazon and other major instant shipping companies. However, an Ohio-based marijuana company Green Growth Brands announced Monday that it would open more than 70 in-store shops selling products infused with cannabidiol, or more commonly known as CBD. The stores will open at Brookfield Properties’ U.S. malls this year, putting the properties at 280 locations by the end of 2019.
This announcement is following a statement given by the most significant mall owner in American, Simon Property Group, in February that said it was partnering with GGB to open 108 locations selling CBD products this year at Simon’s U.S. centers. Someone, those center include the Roosevelt Field Mall in New York and The Galleria in Houston.
“We know that consumers prefer to buy personal care and beauty products from physical stores, and this partnership will allow us access to millions of consumers,” GGB CEO Peter Horvath noted during a press conference.
According to Brookfield’s portfolio, GGB has seven shops with more than 160 properties across America. The CBD company has a brand of stores known as the Seventh Sense, which already sells products like CBD-infused muscle balm, bath salts, and lip scrub. Since the boom of the industry they aim to launch a new chain called Green Lily that would retail things such as CBD-infused personal-care products, according to GGB, four Green Lily Stores will be opening at the Brookfield’s properties, shortly.
According to cannabis-focused research firm Brightfield Group,
The CBD industry is flourishing and has the potential to reach a $22 billion business by 2022.
Since December 2018 Congress has legalized CBD derived by hemp. However, the FDA has banned any company from adding the compound to food or beverages. Despite the FDA warning, cannabis has been added to makeup, tea, pet treats, and soft drinks.
Other significant chains including, Walgreens, CVS, Rite Aid and specialty retailers GNC and Vitamin Shoppe have added CBD products to stores multiple states, “The High End,” a luxury boutique located in Beverly Hills California has started selling exclusive vaporizer pens and pastilles.
Mall owners are now following the Cannabis trend, as they are losing tents fast with waves of closure from stores like Payless ShoeSource, Gap, Charlotte Russe and Dressbarn leaving the malls empty. Traffic has decreased dramatically, and the only thing is driving peoples to the malls are food courts and the movie theaters. Brookfield, Simon and other owners are hoping that the new CBD chains of tenants will drive new and young consumers, boosting morale and offering a unique experience.
“Curation of our shopping centers is fundamental to our ongoing evolution,” announced Sandeep Mathrani, CEO of Brookfield Properties’ retail division. “It is our job to bring in retail offerings and experiences that today’s consumer desires, and this includes GGB’s CBD products.”