LOS ANGELES – The Los Angeles Times writes that a MedMen shop looks right at home on Santa Monica Boulevard among the vintage stores and eateries. “After years of bullet-proof glass and burglar bars, marijuana shops are starting to get a makeover,” writes the news source, adding that merchandise is arranged on sleek wooden tables lined with iPads, a “retail scene reminiscent of an Apple store, but the high-tech gadgets on sale are vape pens.”
California’s cannabis entrepreneurs are borrowing ideas from retailers such as Apple and Whole Foods, focusing on spacious displays and natural light with large open floor plans. With recreational marijuana now legal in seven states, notes the news source, upscale retail stores could attract customers who previously steered clear.
Troy Dayton, chief executive of marijuana research and investment firm Arcview Group, told the LA Times that there is an “upscale revolution in cannabis retailing,” adding that it now “makes sense to invest in your property and make it awesome for the long haul.”
Vivien Azer, managing director at Cowen & Co., added that older consumers with more disposable income are the biggest source for cannabis growth, particularly higher-end products. From 2011 to 2015, Azer commented that marijuana users 26 years old and up grew by more than 30%, while those ages 18 to 25 climbed only about 4%. “The guy ripping bong hits every day is not buying higher-end,” she told the news source. “It is women and wealthier consumers that under-index for cannabis use.”
These women, according to MedMen co-founder and CEO Adam Bierman, have earned the nickname for what he considers an untapped cannabis demographic: the “Chardonnay mom.” He notes that they “start becoming someone who is substituting marijuana for alcohol or something else.”
MedMen co-founder and COO Andrew Modlin told the news source that he looked to retailers such as Apple and even restaurants for ideas. “I have been in so many dispensaries, and you go into the back and there are bags of product on the floor and a used bong right next to it,” he said. “That’s not the environment we want to create.”
According to retail analysts, cannabis entrepreneurs are using the same strategy as brands that successfully attract consumers willing to spend $5 on a cup of coffee: creating an environment with upscale ambiance and an attractive retail experience.
“I’m more inclined to go to a store that looks better,” Ron Friedman, a retail expert at Marcum told the news source, adding, “It’s more than just going in to buy a product; it’s creating an environment where somebody enjoys just being in the store.”