Store designs help create buzz for cannabis retailers

On the Retail Enviroments site published by *POPAI Hungary’s mother organisation Shop! HQ, Beth Mattson-Teig made a review of cannabis industry and the stores selling this category.

Regulations and design

Designing and merchandising retail stores that help attract customers can be tricky. Cannabis remains a highly regulated industry, with laws that vary by the store site. In some jurisdictions, windows and doors must be opaque or covered so that people can’t see into stores, while other areas require limited product displays and locked cases. “It is a very choppy patchwork of rules and regulations that vary by state and municipality,” says Megan Stone, owner and principal of The High Road Design Studio.

Store design and merchandising also need to account for two types of customers. The experienced cannabis user knows exactly what they want and prefers a fast in-and-out store experience. Dabblers and newbies are interested in exploring cannabis. They require more education and guidance on products and accessories.

“It is important to make [newbies] feel comfortable and that they are not doing something illicit, because there is such a stigma associated with this category,” says Jean-Pierre Lacroix, president of Shikatani Lacroix. Lacroix typically designs cannabis stores into “lifestyle” sections related to how people are using cannabis, such as for recreation, relaxation, or medical purposes. Some areas of the store are more educational and experiential, such as where customers can smell the products and touch different textures.

Pharmacy model

Lightshade now has nine stores in the Denver metro area, all of which operate on a pharmacy model that involves a highly consultative relationship between the customer or patient and the staff. A lot of people step in and know exactly what they’re there for, but about 30% are looking for suggestions for trying something new. They need education and guidance and comforting enviroment.

Many states and provinces moved quickly to qualify cannabis dispensaries as essential retailers. Yet as it has done with other retail segments, the coronavirus has pushed more cannabis shoppers online to research products and place orders for pickup in-store. It also is creating more of a challenge for retailers to create an engaging experience for customers when they do walk in the door.

The one-on-one interaction within stores is important because it can be hard to glean all of the information people want online. Growers increasingly want to push information out to stores and customers to create branded products. As the industry continues to grow and evolve, businesses also are working to create their own brands and building customer loyalty.

Shopping faster and easier

From a design aesthetic perspective, the cannabis industry remains diverse. You see brands that run the spectrum from your cozy mom-and-pop shop to your medically focused wellness facility to something that feels more like traditional cannabis culture. It parallels retail categories that bring together lifestyle and performance such as climbing, cycling, and running. It also shares traits with wellness-oriented businesses such as spas, organic food, and health supplements.

Some common trends relate to ways that businesses are learning to operate more efficiently, handle more volume, or be more secure. In addition, some of the practices that COVID-19 has introduced are likely here to stay. For example, giving people an expedited means for BOPIS purchases is likely a permanent change. “We have seen that across industries. If you give people a faster, easier way to shop, most of the time they are going to shop easily and more quickly,”says Megan Stone, owner and principal of The High Road Design Studio, designer of Maitri Medicinals in Pittsburgh.

* POPAI, from 2015 named Shop! is an international organization of the Marketing and Retail industry which headquarters placed in Chicago and Hollywood Florida, representing nearly 2000 local offices. Hungary joined with the POPAI Hungary Association in 2003, which has since then been a nonprofit professional, educational, research and knowledge transfer organisation active mainly in the FMCG sector. Read more: popai.hu