Where Has This Generation Gone?: Verdes Moves Into GH Labs Flagship Store

Verdes has officially leased the former 3,200sqft Generation Health store located at 2621 Wyoming Blvd NE. RESOLUT RE announced the transaction within the last few weeks over Linkdin, the flagship retail asset is effectively gone from GH's operating footprint.

On paper GH labs had everything, so what happened?

Generational Wealth

Generation Health is a little more complicated than it looks from the storefronts. They had vertical integration. They had cultivation. They had substantial manufacturing capabilities. They weren't just making one gummy and calling themselves a manufacturer; GH Labs had CO2 concentrates, vapes, edibles, beverages, flower products and multiple proprietary brands. Their own materials described a broad production operation, and historical menus show an enormous SKU portfolio.

The Colorado connection predates the New Mexico operation. Vance Dugger’s 2021 New Mexico license application said he obtained an economic interest through a consulting agreement with Patients Plus in Colorado, where he spent several years working in the industry. Historical Colorado licensing data connects Patients Plus LLC with a Generation Health store at 4500 Washington Street in Denver.

There is also an unusual piece of history behind their New Mexico license. In June 2021, just before oversight transferred from the Department of Health to RLD, GH was apparently the only applicant for a newly available production license. It applied June 25, was inspected that Sunday, and received the license June 28. That made GH one of the legacy producers going into adult-use. The circumstances generated a fair amount of controversy at the time, although Dugger said he simply followed the instructions he had been given and did not know he was the only applicant.

Roadside Assistance

According to state reported earnings, Generation Health did not fall off a cliff. It spent years walking downhill.

The Wyoming flagship is the clearest evidence. In April 2022 it did about $228,600 in sales. By July 2026, it was doing about $28,100. That is an 88% decline from peak to the final month in this dataset. Comparing April to April, the store fell from $228,574 in April 2022 to $29,901 in April 2026 — down roughly 87%.

More important is how consistent the deterioration was. Wyoming averaged about $160,700 per month during the nine months shown in 2022, then about $106,800 in 2023, $56,700 in 2024, $33,400 in 2025, and only $28,500 per month through July 2026. There is no meaningful recovery in there. It's a long, remarkably orderly contraction.

And this is where the expansion strategy starts looking questionable.

While the flagship was deteriorating, GH opened additional stores. But none of them ever developed into serious revenue engines. Los Lunas peaked around $24,600 a month. Lead peaked around $15,000. Socorro briefly got above $22,000. San Pedro topped out around $27,500.

Those aren't numbers that justify much overhead. Once you account for rent, payroll, utilities, security, POS fees, insurance, merchant costs, inventory carrying costs, management and compliance, some of these stores were probably operating on extraordinarily thin contribution margins — if they were contributing anything at all.

San Pedro is especially revealing. It opened in 2023 and initially settled around the $25,000–$27,000 monthly range. Then it followed almost exactly the same trajectory as Wyoming:

$26,777 in December 2023 → $16,221 in December 2024 → $8,055 in December 2025 → $2,041 in July 2026.

That's not one bad flagship location. That's an organization losing customers across multiple stores.

The chain-level numbers tell the same story. Based on the locations history, GH generated roughly $1.38 million in retail sales during 2024. In 2025, that dropped to about $690,000 — essentially cut in half in one year. Through July 2026, the remaining stores generated only about $235,000.

Based on that it appears between 2023 and 2024, expansions temporarily concealed deterioration of the core business.

In 2023, Wyoming generated about $1.28 million. The entire chain generated about $1.46 million because San Pedro and the first new locations added some incremental revenue.

In 2024, Wyoming collapsed to roughly $681,000, but the other stores contributed almost another $697,000. So total chain sales still looked like roughly $1.38 million.

From 30,000 feet, the company had barely declined.

Underneath that number, however, the flagship had lost nearly half its annual revenue and the company was compensating by opening several additional stores.

That's a dangerous illusion because they weren't necessarily growing, they were adding doors to replace sales disappearing from existing doors.

By 2025, even that stopped working, that enormous flagship was averaging roughly $1,100 a day in gross retail sales. By 2026 it was closer to $940 a day.

For a store of that scale, that's brutal.

And the satellite stores were substantially worse. A store doing $10,000 a month is doing about $330 per day. At $5,000, you're talking about $165 per day. San Pedro's $2,041 in July 2026 works out to roughly $66 a day.

At that point the question isn't really why they closed, the question becomes why they remained open as long as they did.

Wealth Over Health

There is another layer to the Wyoming location that will never show up in a licensing database or a sales report.

People who were around the industry at the time remember just how confident Generation Health's leadership was about its position in the market. Competitors were dismissed. Established operators were treated as temporary obstacles. There was a genuine belief that Generation Health had the money, the infrastructure and the ambition to eventually push some of them aside.

That is what makes the fate of the Wyoming store particularly striking.

The building that once served as Generation Health's flagship — a large, heavily developed retail location that always seemed capable of doing far more business than it actually produced — is now moving into the hands of Verdes.

There is no evidence that the transaction was motivated by old rivalries, and it would be irresponsible to suggest otherwise. Commercially, the location makes sense for Verdes’s boutique style. But for people who know the history, and see the window clings and small vinyl banner, the symbolism is difficult to miss.

A company that once believed it was positioned to run competitors out of the market is out of the building. And one of those competitors is now wiping her heels on old Discount-Dabs branded rugs, and moving in.

And you know what, good for her.