Voyager Life PLC (AQSE:VOY) has secured two further shops in Scottish cities after trading in the first month for its first store was said to be strong.
The supplier of high-quality cannabidiol (CBD) and hemp seed oil products said in a statement on Tuesday that CBD oils and cooling cream were particularly popular sellers since opening its first shop in St Andrews at the start of last month.
Online sales are now the smallest contributor to revenue, the company said, and with a new skincare range introduced to its store this week, management said they are optimistic about making further progress over the coming months.
Furthermore, the level of trading in St Andrews “suggests UK high streets are under-served by high quality CBD sales outlets”, Voyager added, leading to it securing premises in both Dundee and Edinburgh that are planned to open in time for Christmas trading.
With retail premises in Scotland benefiting from 100% non-domestic rates relief until April 2022 and places available on the company's Kickstart application, management said they are confident of keeping costs down as the new shops are opened.
Outside of Voyager’s own stores, it is now supplying elements of its product range in more than 70 third-party shops in England and Scotland, with new additions to the range including pet shampoo and pet deodorant made with hemp seed oil.
While online is no longer the largest element of group turnover, the VoyagerCBD.com website continues to generate sales, alongside the Amazon marketplace and around 20 other CBD and hemp focused websites and online marketplaces.
After the completion of its rebranding process in the summer, management said they are now focused on upgrading the company's website.
“Reflecting the company's success in physical retail, the board continues to believe that online sales will still form a minority part of the company's offering, albeit at the highest margin.
“Nevertheless, as Voyager's brand recognition develops, the board's view is that a substantial growth opportunity exists online, and its strategy is to develop this over the remainder of 2021 and during 2022,” the company said.
Two months on from flotation, chief executive Nick Tulloch said that the company’s plans are “very much on track”.
He added: "The rapid growth of the CBD and hemp market, both in the UK and abroad, is well reported and we remain convinced that a significant opportunity exists to build a trusted brand. Feedback from both retail and business customers has demonstrated that there is a growing awareness and interest in CBD and hemp and our policy of providing clear and accurate information, coupled with high quality products that are fairly priced, is generating increasing interest.
"We have a great deal more to do, of course, and the final months of 2021 will be extremely busy for all of the Voyager team as we develop the three sides of our business.”