How New Buffalo and Monroe are attracting shoppers from Illinois and Ohio, and Dominating Michigan Cannabis Sales
Source: BDSA Retail Sales Tracking | Data Pulled: April 2, 2026
The Michigan cannabis market generated almost $3.2 billion in annual retail sales in 2025, but not all cities are created equal. Tucked along state borders, two small Michigan towns and the concentration of cannabis border stores are punching far above their weight: New Buffalo and Monroe. Together, they’ve held the top two spots in both total retail sales and dollar velocity among all Michigan cities, and their Q1 2026 performance makes it clear that momentum is only building.
The Sales Data That Tells The Story
New Buffalo: The #1 Sales Leader in so far in 2026
Nestled on Michigan’s southwestern tip along the Indiana border, New Buffalo generated $45.9 million in total retail sales in just the first two months of 2026, already outpacing every other city in the state. To put that in perspective, the city has a population of only about 1,700.
In full-year 2025, New Buffalo posted $230.9 million in total retail sales with a dollar velocity of about $31,700 per store per day — the second-highest velocity in the state. Its flower EQ ARP (average retail price per gram) came in at $3.19, reflecting a value-driven price point that continues to attract high-volume shoppers from across state lines.
Monroe: The Velocity Champion
Located on Michigan’s southeastern border with Ohio, Monroe is the state’s other border-town powerhouse. In full-year 2025, Monroe led the entire state with the highest dollar velocity at about $34,500 per store per day and topped total retail sales at $236.1 million — all across just 22 doors.
In Q1 2026, Monroe ranks #2 in total sales at $52.4 million while holding the top velocity position at $30,000 per store per day, with a flower EQ ARP of $2.67 — one of the most competitive flower prices in the state.
Why Border Towns? The Cross-State Shopping Effect
The secret behind New Buffalo and Monroe’s dominance isn’t hard to decode — it’s geography. Both cities sit directly on state lines, serving as convenient cannabis destinations for residents of Illinois, Indiana, and Ohio, states where legal adult-use cannabis is either more restricted or significantly more expensive.
Consider the price gap: flower in Illinois averages $6.11 per gram (FY 2025) and Ohio sits at $7.10 per gram, while Michigan’s border towns price flower at just $3.19 (New Buffalo) and $2.96 (Monroe) in 2025 — a difference of nearly $4 per gram or more. That gap has barely narrowed into Q1 2026, with Illinois at $5.47/g and Ohio at $6.63/g compared to New Buffalo’s $3.09/g and Monroe’s $2.67/g. For a consumer buying even a modest amount of flower, the savings from a cross-border trip add up quickly.
The same dynamic shows up in statewide dollar velocities. Michigan overall averages just $10,300 per store per day in FY 2025 and $9,800 in Q1 2026, while New Buffalo and Monroe both operate at nearly 3x that rate or higher — a direct reflection of the out-of-state customer base driving extraordinary throughput.
Comparing the Two Border Giants
| New Buffalo | Monroe | |
|---|---|---|
| FY 2025 Total Retail Sales | $230.9M | $236.1M |
| FY 2025 Dollar Velocity | $31.7K/store/day | $34.5K/store/day |
| FY 2025 Flower EQ ARP | $3.19/g | $2.96/g |
| Q1 2026 Total Retail Sales | $72.4M | $52.4M |
| Q1 2026 Dollar Velocity | $27.8K/store/day | $30.0K/store/day |
| Q1 2026 Flower EQ ARP | $3.09/g | $2.67/g |
| Q1 2026 Number of Doors | 30 | 21 |
While Monroe held the overall edge in FY 2025, New Buffalo has surged ahead in Q1 2026 — outpacing Monroe by over $20 million in the first quarter alone. Monroe’s smaller door count and higher velocity suggest a more concentrated, high-efficiency market, while New Buffalo’s larger dispensary footprint is translating into dominant top-line sales. Both cities are pricing aggressively, with Monroe dropping its flower EQ ARP to $2.67/g in Q1 2026 — a sign that competitive pricing remains central to the border-town playbook.
How They Stack Up Against the Rest of Michigan
The separation between these two border towns and the rest of the state is striking. Detroit — Michigan’s largest city — generated $189.6M in FY 2025 across 64 doors with a dollar velocity of just $10,300, and that picture hasn’t changed much in Q1 2026 with $47.3M across 57 doors at $10,000/store/day. Grand Rapids and Lansing follow further behind, with Q1 2026 velocities of $12,900 and $9,100 respectively.
New Buffalo and Monroe are operating at 2x to 3x the velocity of Michigan’s major metropolitan markets, reinforcing just how singular the border-town dynamic is. Menominee — another border city on Michigan’s Upper Peninsula — also makes the top 10 with a strong $23,356 velocity in Q1 2026, hinting that the border-town effect extends beyond just the two dominant players.
Key Takeaways
Michigan’s cannabis market is one of the most competitive in the country, but New Buffalo and Monroe have carved out a category of their own. For operators, investors, and market analysts, the lesson is clear: location relative to state borders is one of the most powerful variables in cannabis retail performance. Price-sensitive consumers will travel, and when the price differential is as significant as it is between Michigan and its neighbors, that travel translates into outsized sales velocity, dominant market share, and retail economics that simply can’t be replicated in the interior of the state.
Q1 2026 data confirms this isn’t a trend that’s fading — if anything, New Buffalo’s $72.4M quarter suggests it’s accelerating. As neighboring states continue to refine their own regulatory and pricing frameworks, how these border-town dynamics evolve will remain one of the most important storylines in Michigan cannabis through the rest of 2026 and beyond.
Data sourced from BDSA Retail Sales Tracking, pulled April 2, 2026. Metrics include Total Retail Sales (projected dollar sales), Dollar Velocity (dollars per store per day on days selling), and Flower EQ ARP (average retail price per gram equivalized unit).