February 2016 — Retail Properties Quarterly —
Page 19
O
n Jan. 1, our state celebrated
the two-year anniversary of
the launch of recreational
cannabis retail in Colorado.
Medical and recreational mar-
ijuana sales hit nearly $700 million in
2014, and a dramatic increase is pro-
jected for 2015. This, in addition to a 33
percent jump in licensed retail stores
year over year,
explains why recre-
ational sales already
have surpassed
those of medical
dispensaries.
The commercial
cannabis market is
not only expanding,
but also it is matur-
ing into a serious,
competitive retail
industry with all of
the commensurate
growth pains and
discoveries along
the way. As this
nascent sector enters its third year, the
design of cannabis showrooms and
dispensaries also is evolving to meet
the higher needs and expectations of
a more sophisticated in-state and out-
of-state retail buyer.
While the design of cannabis show-
rooms will continue to evolve, a few
key trends are beginning to emerge.
Based on my recent experience
designing the newAjoya showroom in
Louisville, here are a few thoughts on
what the cannabis retail experience
may look like in the very near future,
and what is driving the evolution.
Changing perceptions.
The stigma
long associated with marijuana is fast
becoming a relic of the past, thus new
design approaches for recreational and
medicinal spaces already are respond-
ing to this shift. Retail concepts effec-
tive in similar sensorially oriented
spaces – like spice, olive oil, cheese
and wine shops – are being applied to
the overall experience of shopping for
cannabis products in a fresh, new way.
Emphasis on branding and identity.
Dispensary owners increasingly are
interested in pursuing a higher design
standard to create a more sophisti-
cated image for the industry. Many
acknowledge the importance of brand-
ing and creating an “experience,” just
as well-known, high-end retailers have
been doing for years. This includes
seamlessly extending a store’s brand
from the recreational dispensary into
the medical dispensary, which is why
forward-thinking cannabis entrepre-
neurs are now turning to retail design-
ers for help.
Marketing.
Most dispensary owners
who make the move frommedical to
the more marketing-driven recreation-
al model lack direct retail experience.
Because nearly every aspect of the two
are approached differently – includ-
ing how the product is displayed, how
customers shop, what the experience
should be like and how the product
is purchased – owners are beginning
to recognize that they have a steep
learning curve ahead when it comes
to marketing.
Security and regulations.
Like the
casino industry, there are specific
rules and guidelines when it comes
to security – the amount and size of
live products that can be displayed,
the necessity for separate entries, and
what can and cannot be consumed
within a store. As a result, owners and
designers are becoming more effective
at balancing environmental and safety
concerns with achieving a physical
environment infused with a sense of
comfort, inclusiveness and profes-
sionalism. To this end, design firms
have begun to incorporate invisible
security techniques (used in our police
and high-security facility work) to help
downplay this aspect of the business.
Display methodologies.
Because
edibles recently began to outsell mari-
juana and strain sales, the approach
one takes to displaying products is
changing as well. This created a need
for flexible display systems as well as
innovative ways to refrigerate and dis-
play food-based products (with expira-
tion dates). Additionally, glass pipes
and cannabis accessories now fall
into the “functional art” category and
should be treated as such. Efficient
display and storage of a wide variety
of easily accessible package weights
and sizes also must be integrated into
the overall design.
Lighting.
When displayed in cases,
smaller objects like strains and con-
centrates must be visually distinct
and available for smelling. The use of
under- and back-lighting designed to
highlight glassware, the texture and
color of strains, and the shape and
materials of the vials the strains are
displayed in is becoming more com-
mon. However, light and heat impact
the longevity of the strains, which
must be taken into consideration
when finalizing lighting selections.
Education.
As the industry seeks to
grow its market, creating an inviting
educational experience will become
paramount. Recreational dispensaries
will need to engage clients in a more
personalized shopping experience
while allowing for general informa-
tion gathering and shopping. It is the
owner’s responsibility to educate his
customers who seek a variety of dif-
ferent experiences.While dispensary
shopping likely will continue to be
reliant on a personalized, one-on-one
relationship between patrons and staff
for some time, there is growing inter-
est in allowing customers to browse
for products just as it is done in other
retail sectors.
Creating an experience.
Because a sig-
nificant percentage of retail sales are
to out-of-state visitors who plan their
trips to Colorado around their visits to
cannabis showrooms, an exceptional
first-time experience is key to assuring
return customers. To that end, when
designing a retail interior environ-
ment with a diversity of product types
and sizes, designers look to the space
itself to create the overall experience.
The visual aesthetic must be strong
enough to be memorable, yet consis-
tent with and complementary to the
multitude of products sold.
Various elements like lighting, the
design and placement of display
cases, color, music, graphics, and the
use and placement of lounge-like fur-
niture are employed to achieve a spa-
tial environment that reinforces the
store’s brand while creating a subtle
sense of retail theatre. In Ajoya’s case,
the owners desired a spa-like, high-
end showroom with a touch of elegant
sophistication, not unlike that created
within an Apple store.
Social causes.
In the future, differ-
entiators from one marijuana dispen-
sary to another may extend beyond
the products and the experience to
include social causes, a focus on envi-
ronmental responsibility and educa-
tional opportunities.
Shifting demographics.
One last trend
worth mentioning is the rapidly evolv-
ing shift in demographics already
underway in our state. Over the next
decade, the increasing probability of
age-related issues like dementia and
Alzheimer’s disease being treated
with various forms of marijuana will
impact the industry’s customer base
and the design of showrooms. As
baby boomers move into their latter
years, design elements like lighting,
acoustics, visual stimulation and the
pragmatics of universal design strate-
gies will come into play, not only in
our homes, but in retail environments
as well.
In conclusion, just as fast-casual
restaurants have morphed from a
focus on “quick and convenient”
to one of “patron experience and
product quality,” the recreational
dispensary will evolve as well. How-
ever, unlike most retail experiences,
customers can’t try on or try out can-
nabis products before they buy them,
thus branding and showroom design
that focuses on the overall experience,
education and quality of products will
continue to be key strategies for suc-
cess over time.
s
Jeffrey L.
Sheppard
Cofounder and
design principal,
Roth Sheppard
Architects, Denver
Design
Photos courtesy Robert Schmid Photography
Lighting, placement of display cases, color, music, graphics and the use of lounge-like furniture reinforce Ajoya’s brand while cre-
ating a sense of retail theatre.
The integrated merchandising system at Ajoya is highly functional, while introduc-
ing a visually stimulating minimalist mosaic to heighten the overall impact.
