GrowGeneration Corp. (OTC:GRWG) is currently one of the largest specialty retail hydroponic and organic gardening stores in the United States, selling to both commercial and at-home marijuana growers. This morning, GrowGeneration announced that they signed a strategic partnership with a cultivation lighting company, LumiGrow.
Related: Lighting Company Signs Contract to Outfit Oregon Cultivator
GrowGeneration currently has 13 different store locations in four major marijuana states. With locations in Colorado, California, Washington and Nevada, GrowGeneration's stores will allow LumiGrow to better target cannabis cultivators. Each of these locations will now be stocking LumiGrow's commercial LED fixtures with in-store displays that exhibit LumiGrow's smart LED technology and smartPARTM cloud-based software. In addition to carrying the products and featuring the displays, GrowGen’s sales professionals will be providing local sales support for the cannabis markets in these regions.
What Does it Mean for GrowGeneration Investors?
By increasing in-store offerings with products that appeal to both at-home growers as well as commercial-grade cultivators, it widens the potential customer base for GrowGeneration's stores. In addition to a larger pool of potential customers, grow lights specifically are high ticket items. This can lead to increased same-store sales, increased revenues, and if the margins are right - increased bottom line results.
In our opinion, this can stand to benefit LumiGrow just as much if not more than GrowGeneration. Having their product line available in-store across four major cannabis markets will increase awareness and sales for their lighting systems.
In the meantime, shares of GRWG are up 1.55% at the time of writing this.
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