As many of you know, I have been touting the PLANET 13 business model and following its development for some time. The PLANET 13 Dispensary/Lounge concept would appear to be the next generation of Cannabis retail. Especially for recreational products. A couple of weeks ago while in Las Vegas I was able to visit the PLANET 13 concept store in operation. Granted, there were some initial challenges to overcome (e.g., being able to use and consume in the same facility), but they have successfully worked through those “speed bumps”.
There are multiple replications in the works, and soon California will have several PLANET 13 locations. It is a new experience. Another indication that our industry is making the leap to legitimacy in the eyes of the public. Entering PLANET 13 is a visual feast! And they have done an exceptional job of making the store user friendly. I encourage you to visit if you get the chance. I think then you will see why HighBridge continues to pursue PLANET 13 as a retail partner.
(More on those developments later!)
Last week there was a “Retreat” in Las Vegas sponsored by the National Institute of Cannabis Investors, of which we are a founding member. And, although scheduling did not allow us to attend, I received the following in a letter from Greg Miller, CEO of NICI, summarizing the NICI take on PLANET 13: An Expertly Crafted Experience
“It was perfect.”
That’s how one conference attendee described their visit to the PLANET 13 Holdings Inc. (OTC: PLNHF) Las Vegas dispensary.
Frankly, perfect is the only word you need to describe the company’s attempt to redefine shopping into a whole new experience.
Even calling it a dispensary doesn’t do justice to such an immersive environment. From the moment you step onto the parking lot, the scene floods your senses. Any notion of stopping by a dispensary just to buy some marijuana quickly flees your mind.
Get checked into the dispensary, and you’re free to go where you want. Even with the crowds, you’re never bored or waiting in line. Enter your name in the virtual queue, and a budtender will text you when it’s your turn.
Once inside, balls of light dance through the air in synchrony with the music. They’re actually controlled by drones, but the fascination is unavoidable.
Nothing is hidden.
Transparency is apparently a big deal for co-CEOs Robert Groesbeck and Larry Scheffler. Every month they publish updated statistics on store traffic, purchases, and total revenues. This one store alone continues to generate over $5 million per month in sales, selling to nearly 2,000 customers per day.
And the work they’ve done to keep customers engaged while in the store rather than waiting in line is keeping the average ticket high. During the month of July, PLANET 13 saw 3,575 visitors – over half spent an average of $90. I know that from the moment I walked in, my head was on a swivel, so they’ve definitely figured out how to keep visitors engaged. This ups the likelihood of turning visitors into customers.
Once phase II is complete, which includes a coffee shop and pizzeria, I fully expect those average ticket sales to leap higher.
You hear a lot of hype surrounding PLANET 13, but I’m here to tell you it’s not hyperbole. And once the company’s Los Angeles superstore opens next year, we’ll see just how well PLANET 13 can scale the “experience buying” concept.