Tailoring Retail Spaces to Demographics
“If you try to be all things to all people, you won’t be anything to anybody.” For product brands, this old adage has felt more and more apt over the past few years. Competition is increasing and differentiation is key, leading brands to identify relevant consumer segments as opposed to chasing every potential sale. But does the strategy of “niching out” and focusing on specific demographics make sense for a dispensary, a fixed-location business with a total addressable market limited by geography? A growing number of store operators are testing the strategy. In some of the more open retail markets like California, Michigan, and parts of Canada, competition for customers is fierce, and retailers can find a portion of their fate in the hands of municipalities, which often cluster cannabis retailers together in low-foot-traffic “green zones.” Services like Weedmaps and Jane Technologies encourage shoppers to compare prices, leading to a relative normalization in prices at a moment w...