Many US cannabis shops are 'underperforming' their potential: Retail sector veterinarian and cannabis CEO
Cannabis retail in the USA is fraught with “points of dissonance” from the shops that exist now, retail industry veteran Peter Horvath, who currently runs on a cannabis-focused consumer products firm, told CNBC on Thursday.
L Brands and American Eagle Outfitters executive whose new firm, Green Growth Brands, will come people later this season, said he realized that if he seen 100 cannabis shops in the USA on a mission to know the landscape. The thought was to go to all them immediately “so that, eventually, you can see what the patterns are,” Horvath informed “Mad Money” sponsor Jim Cramer within a private interview.
“In most retail experiences, there’s too many points of dissonance. In cannabis, it’s the same, except they’re even more extreme,” that the CEO stated. “There are things to admire, but generally, every single store is underperforming its true market potential.”
Horvath explained his experiences in the shops as “overwhelming.” Frequently, he said, there is a security guard at the doorway in a bulletproof vest and a gun that verifies each client’s era — “very inviting,” he quipped — accompanied with a well-staffed, however cluttered retail experience.
“It’s not organized in a way that’s intuitive,” Horvath explained. “You’re worried: am I in line? Are they going to make me buy something if I just want to ask a question? In this case, I got to the desk, ready to buy something, and they said, ‘Did you register?’ Uh, no. ‘Oh, you have to register at the desk in the front.”
That expertise talked to the disarray at several marijuana retailers which are presently working in the USA, Horvath stated, qualifying that “everybody’s doing the best they can.” And, as an expert retail leading a firm endorsed by the Schottensteins, a household which helped construct retail giants such as DSW and American Eagle Outfitters, Horvath is putting out to trounce the competition.
“We have been lucky enough to be a part of those groups and leading the plans that yielded the No. 1 lingerie company in the entire world [in L Brands’ Victoria’s Secret], the No. 1 personal care products industry on the planet in Bath & Body Works, the No. 1 denim company in North America at American Eagle, along with the No. 1 shoe specialty industry in North America, DSW,” the CEO said.
“We think not only are we maybe the first guys you’ve met in this industry who’ve operated multi-billion-dollar businesses, have taken them public in the U.S. markets and done all those earnings conference calls, but also, we’ve built brands from scratch and brought them to consumers, competed for consumers with everyone else and the result is we came out on top,” Horvath continued. “So I’d say the team we’ve put together is arguably one of the strongest retail teams in any market, let alone cannabis.”