Last month, clothing brand Abercrombie & Fitch announced they would begin selling CBD lotions, balms and skin creams in their dimly lit stores across America.
Now, American Eagle is hot on the tail of its top competitor. CBD has exploded in popularity and commercial relevance since the start of 2019 and it seems no sector is immune. The company announced it would begin carrying the products in 500 stores starting in October.
“American Eagle's image is about positive messaging and wellness, so it's not shocking that they would have CBD-infused products,” Jane Hali & Associates analyst Jessica Ramirez told Investing.com. “The products complement their brand and customers.” [2]
Abercrombie’s initial announcement that they would be offering the same brand of CBD, Green Growth Brands, only extended to 160 stores, which seems to show American Eagle pulling ahead in terms of reach.
According to CNBC, the company that specializes in body care products has three major retail partners, including American Eagle, Abercrombie and DSW. [1]
Between Brookfield Group and Simon, CNBC reported that GGB has a number of smaller, kiosk-style shops for American malls and the like as well. The two companies are funding as many as 180 GGB locations currently. [1]
CNBC notes that this measure to adopt CBD products may be a finger in the dam, as American Eagle stocks are down 14% this year. [1]
By this point, just about everyone has had some degree of exposure to CBD. Conversations at family holidays, around the water cooler and more have been buzzing about the stuff for the better part of the year.
That’s because in late 2018, Congress passed its Farm Bill and it was signed into law, making hemp legal as an agricultural product for the first time in decades. It opened the flood-gates for innovations in the long-dormant sector of the market.
Old tobacco factories in the American Southeast have turned into processing centers for CBD oil, while other firms research how to leverage the textile aspects of hemp in clothing and plastics.
CBD oil itself? It’s the non-psychoactive relative of marijuana derived from cannabis that huge numbers of people are using for all number of home remedies.
A loyal troupe of return CBD consumers seek it out for just about everything. People use it for chronic pain, anxiety, arthritis and insomnia. Originally, research around CBD surrounded its possible uses for specific types of epilepsy. Now its appeal is near universal.
American Eagle is just the newest development in a CBD market that is exploding, and could reach a valuation of $22 billion by 2022.
Sources
[3] https://www.foxbusiness.com/features/american-eagle-sell-cbd-infused-products
