It’s 2020 and of course the big stories are all related to pandemics and elections but you may not have noticed that recreational Cannabis is now legal in 15 states. 10 years ago, that number was ZERO. On a business trip to Los Angeles last year I happened to find myself in Downtown LA standing in front of a MedMen store and looking in with wonder and curiosity. Yes, the logo for MedMen had a marijuana leaf on it but the store I was looking at seemed more like a luxury handbag store. There were expertly crafted retail displays featuring exotic woods with glass cases befitting a jewelry store. There was perfectly designed lighting that washed brick walls and made the items in the cases glow. And there were small jewel boxes of products ranging from edibles to oils to capsules all displayed as though this were an apothecary’s personal stash.
In the old days words like ‘stoner’ or ‘pothead’ were used to describe people who used marijuana but I’m not sure how many deadbeats could afford a small pack of gummies for $25. Most of the people I saw enter the store were well dressed in Designer clothes.
It’s no secret that cannabis sales are entering new territory as luxury retail destinations. Part of removing the ‘stigma’ associated with cannabis products relies on higher quality environments and a ‘re-branding’ effort of sorts. It’s not unlike the luxury wine store with gorgeous displays and tables of cheese tastings as compared to the corner liquor store. In one you would expect to find curated pairings and rare vintages while the latter deals with more basic needs.
So how does one begin to design a luxury dispensary? It all starts with knowing your customer. If you want to attract a customer who will spend hundreds of dollars on each trip you will need to create an environment where the level of service and the level of finish are consistent with the type of spend you are looking for. Having a space that feels like a convenience store will likely prevent the ‘high end’ shopper from spending a lot of time in your store. Using richer finishes and lighting to create a bespoke retail environment will at the very least make people curious to window shop if not purchase a little something as a souvenir. Given that it will still be a few years before Cannabis is legal in every state, there will be a novelty factor in people spending $25 on some candy before the thrill is gone. For that reason, small details in a space will make a big difference. Are the products displayed well and easy to see? Is the space ‘Instagram’ worthy? Will you serve beverages that might extend a customer’s stay such as espresso or even CBD drinks? What will the staff be wearing? Is there music playing and what is it? These are just some of the many considerations which factor into a great retail experience.
While we don’t yet know how quickly we will see these dispensaries pop up in small towns across America, it is likely that the new age of Cannabis is probably closer to J. Crew than it is to Jay-Z. So don’t be surprised when you find yourself shopping at the mall and the newest dispensary is turning heads right next to the Apple Store.