MJBizMag May-June 2023 - 10

FROM THE EDITOR Kate Lavin
Ready for Retail
Marijuana store owners adopt wide-ranging strategies
to win over customers
T
he retail sector of the
regulated marijuana market is
expected to fare better in the
next 12 months than the industry as
a whole.
According to the newly released
2023 MJBiz Factbook, nearly 60%
of respondents to a survey from
MJBizDaily reported a " much
better " or " somewhat better "
outlook for retail in the next 12
months, compared with just 42%
for the cannabis industry overall.
With more than 16,500 adult-use
and medical marijuana retailers
operating in the United States,
the retail sector represents about
25% of plant-touching businesses,
according to Factbook data.
New adult-use markets such as
Connecticut, Missouri and New York
will see the number of regulated
retail outlets and sales increase
exponentially over the next year,
but at the individual business level,
challenges remain:
* Legacy marijuana storefronts
continue to operate in many
regulated markets after the
launch of regulated sales,
competing with licensed shops
for sales but without the
onerous fees and taxes.
* States that don't cap the
number of retail licenses
inevitably see stores offering
sizable discounts to win
over consumers based on
price, undercutting profit
margins to a level that can be
unsustainable.
* Retail is one of the most
challenging sectors to maintain
consistent staffing, and internal
theft can be a problem.
8 May-June 2023 | MJBizMagazine
In a cannabis market
that includes
5-milligram CBD
tablets and vape carts
with 85% THC,
a one-size-fits-all
model might not exist.
There really is room
for everyone.
Avenues to a Goal
Regardless of whether a marijuana
store has onerous compliance fees,
increased competition or heavy
turnover, retailers' goals are largely
the same: Get people into the
store, encourage them to purchase
products and return for more.
For this issue dedicated to
cannabis retail, the editorial staff
of MJBizMagazine spoke with
marijuana shop owners from across
the country about creative tactics
they've employed to differentiate
themselves and create loyal consumers.
Some of those innovative
enterprises include:
*
An Oklahoma dispensary that
converted an office into a
kitchen where customers can
watch fresh-baked infused
products being created.
*
A licensed microbusiness in
Northern California where the
apothecary-styled retail shop
is complemented by an on-site
consumption lounge, inn and
restaurant.
* A Missouri retail chain that
invites consumers to interact
face to face with brand
representatives-but only after
making their way through a
dimly lit cave.
And that is just the beginning.
If the motto for retailers is " know
your customer, " these disparate
business models beg the question:
Who is the cannabis consumer?
In a cannabis market that includes
5-milligram CBD tablets and 85%
THC vape carts, a one-size-fits-all
model might not exist. There really
is room for everyone.
Just the Facts
For industry veterans and those
considering whether to enter the
regulated marijuana business, the
2023 MJBiz Factbook provides data
and analysis about national trends,
changing regulations and more.
This year's Factbook comes in at
a little more than 200 pages, with
sections devoted to cultivation,
investing, manufacturing, retail,
CBD and hemp.
To get a preview of what you can
expect from the 2023 MJBiz Factbook,
turn to page 22 for a sample.
You can order your own copy at
insights.mjbizdaily.com/factbook
and put these insights to use.
Kate Lavin is the editor
of MJBizMagazine. Reach
her at kate.lavin@
mjbizdaily.com.
http://insights.mjbizdaily.com/factbook
MJBizMag May-June 2023

Table of Contents for the Digital Edition of MJBizMag May-June 2023
