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Is a CBD store coming to a mall near you?

Sears Holdings and J.C. Penney struggle and shutter their doors? Well, open stores that sell CBD-infused products, of course. " data-reactid="65">Say "Simon Property Group" and you'll have a lot of folks scratching their heads, because it's not exactly a household name. But this $65 billion real estate giant is the largest owner and operator of malls in the United States. Simon Property Group operates 107 malls, 69 premium outlets, and 234 income-producing properties in total globally, but primarily across 37 U.S. states. And what is it planning to do with all of these malls as anchor retailers like

Sears Holdings and

J.C. Penney struggle and shutter their doors? Well, open stores that sell CBD-infused products, of course. 

still a no-no in the eyes of the Food and Drug Administration (FDA)." data-reactid="66">This past Monday, Feb. 11, Simon Property Group announced that it'd be partnering with Green Growth Brands to open 108 shops in its malls this year that'll sell products containing CBD. It should be pointed out that while hemp-based CBD is legal, CBD derived from cannabis is still regulated at the federal level, with CBD additives to food or beverages, regardless of the source plant, still a no-no in the eyes of the Food and Drug Administration (FDA).

Though this partnership might not seem like a big deal for a giant real estate company like Simon Property Group, it's perhaps a bit more important than you'd realize. When looking at the company's malls and premium outlets in the U.S., nearly 22% of its inline and freestanding stores are due to have their leases expire between 2020 and 2022. By allying itself with Green Growth Brands and GGB's CEO, who happens to have a nose for the retail environment, Simon Property Group is likely derisking any potential negatives of lease expirations, especially if the U.S. economy were to slow a bit.

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Expect more retailers to open their arms to CBD products

approximately $22 billion by 2022. That's a compound annual growth rate of 147% for those of you keeping score at home. There's arguably a ton of opportunity with CBD sales, and that's likely to mean more retailers being willing to give CBD products a shot." data-reactid="90">According to a report from the Brightfield Group, global CBD sales are expected to grow from just over $570 million in 2018 to approximately $22 billion by 2022. That's a compound annual growth rate of 147% for those of you keeping score at home. There's arguably a ton of opportunity with CBD sales, and that's likely to mean more retailers being willing to give CBD products a shot.

One area in which we could soon see CBD oil used as a means to drive an increase in foot traffic is pharmacies. Although front-of-house retail sales aren't typically the bread and butter of drugstore chains, drugstores that choose to get more aggressive with their stock of CBD products could instill a sense of loyalty among their customers. More importantly, loyal customers come back to these stores when they need higher-margin prescription medicines.

(NASDAQ: AMZN) stepping in and carrying CBD products. Amazon arguably has the best logistics and one of the lowest overheads among online retailers, and it wouldn't be hard for the company to make a deal with a distributor like Charlotte's Web to throw its weight around. The logistics of including CBD on its website might be difficult right now, but added clarity from the FDA in the future on CBD additives could give Amazon the push it needs to get involved in this high-growth space." data-reactid="92">Also, don't overlook the possibility of an e-commerce giant like

Amazon.com (NASDAQ: AMZN) stepping in and carrying CBD products. Amazon arguably has the best logistics and one of the lowest overheads among online retailers, and it wouldn't be hard for the company to make a deal with a distributor like Charlotte's Web to throw its weight around. The logistics of including CBD on its website might be difficult right now, but added clarity from the FDA in the future on CBD additives could give Amazon the push it needs to get involved in this high-growth space.

Long story short, continue to expect the unexpected when it comes to CBD partnerships.

More From The Motley Fool

Sean Williams has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Amazon. The Motley Fool recommends DSW. The Motley Fool has a disclosure policy." data-reactid="102">John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Sean Williams has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Amazon. The Motley Fool recommends DSW. The Motley Fool has a disclosure policy.

Source : https://sg.finance.yahoo.com/news/now-coming-mall-near-cbd-140600132.html

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