Shore House Canna, West Cape May’s boutique marijuana store, continues to ride high 2 years since opening

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Before opening Shore House Canna, Nicole Melchiorre, of Philadelphia, and her business partner Tom Nuscis, of Cape May, traveled across the country, visiting licensed cannabis dispensaries and talking with operators to study compliance, culture and business strategy.

Dave Christian, a hemp grower in Vermont who created CBD products for a disabled family friend before turning into a business, became their mentor. He guided them through licensing, regulations and operational standards.

Melchiorre and Nuscis chose to locate their store in West Cape May, a borough of fewer than 1,000 residents with walkable streets and seasonal tourism.

When Shore House Canna opened in fall of 2023, there were about 60 cannabis shops in New Jersey and their shop was the only one in Cape May County. Today there’s about 240 in the Garden State and three in Cape May County. However, only about 37% of the state’s municipalities allow cannabis businesses, but there is at least one in each of the state’s counties.

“We wanted to be forward-thinking and create another revenue source for West Cape May,” said Mayor Carol Sabo. “Shore House has been a nice addition to our business community. It brings a diversity of products and is a destination for our guests and locals.”

The borough currently allows only one dispensary license. While most in the town were welcoming, Melchiorre said there were few “concerned citizens” who were vocal about what “type” of buyer it would bring the quaint town. But she said that most “look like you and me.”

Since their opening, Melchiorre said they have found a steady seasonal business, but local residents have also taken to the store. She calls her clients “canna-curious”; customers who want to learn and understand their options because it is a complex selection process and not one-size-fits-all. The majority of Shore House Canna’s customers tend to be a more mature crowd looking for edibles to help with pain, sleep or anxiety. The customers range from age 21 to 90.

Regulation from state to seed

New Jersey legalized adult-use cannabis in 2021 and launched retail sales in 2022. To operate, Shore House Canna needed a Class 5 license from the Cannabis Regulatory Commission, a process that involved zoning reviews, security plans and state and local approvals. West Cape May added its own licensing fee of $2,500 annually and a local tax of 1% on gross sales.

“It is a fully monitored environment. We have to track everything, follow strict packaging laws and always be ready for inspection,” Melchiorre said.

Melchiorre shared that shop owners need to provide detailed site and floor plans that outline everything from ID checkpoints and secure storage areas to lobby design and how customers will safely move through the space.

Products can’t be visible from the street and cannot be on display inside the shop, either. The team wanted the store environment to be warm and inviting, designed like a beachside surf shop rather than a clinical dispensary. They used blue and orange to replicate the beach, and added surf boards, wood pilings and a floral motif to accomplish the vibe, even covering the windows with wave-like murals. Cannabis products aren’t out on the floor, but packed in a secure back room and passed through a window before checkout. There is also a roll-up window and delivery service.

“We wanted it to be surf shop meets weed shop,” Melchiorre said.

Business is booming for the cannabis industry

According to the state, cannabis sales reached $1 billion in 2024 alone. On May 13, the New Jersey Economic Development Authority launched a new $5 million Cannabis Business Development Grant Program to support emerging recreational cannabis businesses. The program offers one-time reimbursements of $75,000 to help early-stage entrepreneurs offset startup costs.

Recently, President Donald Trump said his administration may reclassify marijuana as a less dangerous drug in the coming weeks. While 45 states allow medical or recreational use, marijuana is still considered a Schedule I drug under federal law, on par with heroin and LSD. Reclassifying it wouldn’t legalize recreational use nationwide, but it would move marijuana into the same category as certain prescription medications, changing how it’s regulated and dispensed.

There are still challenges to the business

Because cannabis remains federally illegal, traditional banking nearly always refuses service to cannabis retailers. Even compliant state-chartered banks charge high fees for the extra monitoring required under the Bank Secrecy Act and Financial Crimes Enforcement Network guidelines.

Shore House’s owners were financially stable enough to self‑finance their business. But that didn’t solve all their financial needs. They were turned away from at least five banks and employees have had their checks declined because their paycheck came from a cannabis business. One worker was even denied a mortgage. The shop is a cash-only business given federal regulations around credit cards.

“Even getting a checking account was difficult,” Melchiorre said. “We had to set up joint personal accounts and route payroll carefully. It’s disheartening.”

Despite the challenges, Melchiorre said that after two years in operation, her business is now profitable. She was able to repay herself the startup loan, her customers are happy and the majority of the team has stayed with the business since opening.

At legalized shops such as hers, all products are lab-tested, sourced from licensed New Jersey growers and manufacturers and sold in child-resistant packaging, she said. Edibles come only in soft lozenges, chews, capsules or tablets in accordance with state rules and regulations.

Melchiorre’s and her budtenders’ mission is to educate customers on what is best for them. She said some people are looking for a head high, like having a beer after work, while others want a body high to help with pain without the side effects of prescription drugs. She said there are options so people are not walking around stoned. Recently, one customer came in holding empty pre-roll packaging and told Nicole it helped his restless leg syndrome better than any medication, and that he is now able to sleep in the same bed as his wife.

Melchiorre said she has heard more stories that counteract the stigma around cannabis.

“I invite people to come in and check it out. I think they find it scary and intimidating as I did. The first time I went into a store with Dave, I was like, ‘Can I ask questions?’ He’s like, ’Yeah, you should,’” Melchiorre said. “It’s not a scary drug. It actually has some really great benefits to it that can help people.”

WHYY News is partnering with independent journalists across New Jersey to spotlight the people, communities, cultures and distinctive places that shape the Garden State. This work is made possible with support from the Geraldine R. Dodge Foundation.