GrowGeneration, the nation’s largest chain of specialty hydroponic and organic garden centers, has announced its acquisition of Hydroponics Depot, Phoenix’s largest indoor and outdoor garden center. With the addition of Hydroponics Depot, GrowGen’s portfolio of hydroponic garden centers now includes 29 stores across 11 states.
GrowGen’s entry into the Arizona market comes as voters consider Prop 207, which would legalize limited possession, cultivation and use of marijuana for adults ages 21 years or older. If approved, it is estimated that Arizona’s cannabis market could grow from a $700 million medical marijuana market in 2020 into a $2 billion market, including both recreational and medical marijuana.
“We’re excited to add Hydroponics Depot to our growing portfolio, with year-to-date sales in excess of $5 million and year-over-year growth at 50 percent,” said Tony Sullivan, GrowGen’s COO. “Importantly, it represents our 11th state and our first retail operation in Arizona, a key market in GrowGen’s growth plan. We see tremendous potential from both a medical and recreational standpoint.”
Retail sales of medical marijuana products in Arizona rose nearly 20% from January to May, according to the state estimates. Much of the increase is likely due to the coronavirus lockdowns which caused more people to consume cannabis as well as attempt to cultivate at home instead of visiting dispensaries.