A sign points out onto Pleasant Street in Northampton from the entranceway of The Source dispensary. The store opened in April 2022. (Will Katcher/MassLive).
NORTHAMPTON — The Source, a marijuana shop at 58 Pleasant St. that opened only in March will close Friday.
It’s the first marijuana shop in Massachusetts to shut down since the first legal adult use dispensaries opened in 2018. Many in the industry see this as a harbinger of a shakedown in a maturing industry, especially in Northampton which has 12, soon to be 11, operational stores.
Seven pot shops, including The Source, are within blocks of each other.
The shop has 16 employees, according to workers there who referred to Brett Sprau, general manager of The Source.
The Source is operated by Just Healthy LLC, according to documents on file at the Massachusetts Cannabis Control Commission, and is run by a multi-state operator based in Las Vegas.
In October, Northampton Mayor Gina-Louise Sciarra turned down the application of Euphorium, a dispensary that wanted to open across town in the Florence section of Northampton. Her decision was sparked, in part, by fears of too much competition.
Tuesday, Matt Yee, chief operating officer of competitor Enlite Cannabis Dispensary, 391 Damon Road, said there were contractions in other legalized marijuana markets with shops closing in Colorado, Washington state and California as the industry matured.
“It’s going to be an interesting year in 2023,” he said.
Massachusetts cannabis retailers have done $3.8 billion in business since the first legal dispensaries opened in November of 2018. Year to date sales have totaled $1.34 billion.
The Cannabis Control Commission told the Boston Business Journal that two other recreational marijuana retailers surrendered licenses when owners merged. Owners are limited to just three locations.
The Northampton Mayor’s office did not return a call for comment.
Material from the Boston Business Journal was used in this story.
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H/T: www.masslive.com
