design:retail - August 2016 - 32

the visual eye 032 "Green" Retail PETER-TOLIN BAKER VISUAL MERCHANDISING SPECIALIST P-T B DESIGN SERVICES ptb@ptbdesignservices.com I T IS NOT OFTEN that a new type of retail store arrives on the scene-one that is unique in its combination of product, sales and service. With recent changes in select states, legal sales of recreational marijuana have created a demand for new retail outlets, and the retail design industry is already a key player. Currently, 25 states and the District of Columbia have laws legalizing cannabis (marijuana) in some form. Alaska, Colorado, Washington, Oregon and the District of Columbia, have legalized recreational use, with other states not far behind (California has a ballot vote coming in November). The precursor to today's cannabis retail stores was the medical marijuana dispensary, which provided sales and service of cannabis for those with a doctor's prescription. This has quickly given way in the latest crop of new retail stores that are now marketing and selling a range of new product in a whole new, transparent way. Needless to say, sales are booming. And with the high taxes on recreational sales (25 percent) so is the state tax revenue. Oregon is expected to take in $43 million in tax revenue in the first 12 months of legal recreational sales; a significantly higher amount then the projected $3 million originally forecasted. And Washington state expects tax revenue of $1 billion over the next four years. But before you quit your day job, don't underestimate the challenges facing this emerging retail market. At a recent cannabis marketing seminar I attended, it was apparent that getting an approved, legal store opened is no easy feat given the challenging "new frontier" business environment inherent to the current cannabis industry. Legal, financial and security issues are actively being worked out on every level of the business. Product labeling requirements seem to change every day, making one's pre-packaged inventory extremely time sensitive. Federal regulations are nothing new, as AUGUST 2016 DESIGNRETAILONLINE.COM other regulated industries can attest to; however, the legal limbo that cannabis is in at the federal level further complicates business matters. With banking and trademarks regulated by the federal government, challenges such as opening a business bank account, filing federal business tax returns, interstate shipping or obtaining a brand trademark are all just now being fully vetted. But among all the noise, there is a growing range of groundbreaking cannabis retail locations making their impact on today's market. So what is a cannabis retail store like? In general, the stores are like any other type of neighborhood retailer or service provider. A unique blend of other types of retail services-such as a medical dispensary, Chinese herbalist, tea and coffee store, apothecary and artisanal gourmet shop-the stores promote a genuinely friendly, informative, serviceminded approach to their customers. At the street level, current shops range in style and design that often reflect their local neighborhoods. Many shops are individually owned and operated, but more and more businesses are expanding as local chains. Wit and humor reign with store names, such as Green Goddess or Little Amsterdam. Entry is via a front lobby, which is essential to accommodate the check-in process. This includes showing your I.D. (21 and older). You are GLOBALSHOP.ORG then buzzed-in through a secure door into the adjacent sales area. As with traditional retail, creating an authentic narrative for a seamless shopping experience is key. Sales are driven by three categories: flower, concentrates and edibles, displayed in a range of showcases, wall shelves and freestanding floor fixtures. Flower (traditional "buds") represents more than half of the sales, followed by concentrates and edibles. Various flower product is most often displayed in airtight clear apothecary jars in a secure counter or cabinet; each jar labeled with its own particular, oftentimes provocative, name, like Jamaican Lambs Bread, Chocolope or Sour Diesel. Smaller sample containers are on the countertop assembled for customers to see and smell while shopping-sorry, testing the samples is not allowed. Industry-related clothing and accessories are displayed on garment racks, POP, showcases and display tables. Signage lists available flower product and prices, as well as other promotional information via a range of printed graphics, chalkboards and video monitors. Guest seating is oftentimes provided. Security systems are no more apparent than in most luxury retail stores. Plastic childproof containers with labels are used for packaging flower sales, with recycling bins provided for returned containers. Payment is usually cash only. It's that simple-at least to the customer. The exciting opportunity from a retail design point of view is how to move the cannabis customer and industry stereotype beyond the traditional confines of its counter-culture, stoner, black market past into a new future of experience that reflects the lifestyles and tastes of today's current cannabis shoppers. PETER-TOLIN BAKER IS ACTIVELY INVOLVED WITH RETAIL DESIGN AND VISUAL MERCHANDISING VIA P-T B DESIGN SERVICES (OWNER), AND AS A REGULAR CONTRIBUTOR TO DESIGN:RETAIL. Photo courtesy of OPENRANGESTOCK/ISTOCK/THINKSTOCK http://www.DESIGNRETAILONLINE.COM http://www.GLOBALSHOP.ORG

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