The cannabis retail revolution is well and truly here. The industry is evolving quickly across the globe, with companies and brands embracing various retail innovations to set themselves apart as cannabis retail evolves from a cottage industry. Many bricks-and-mortar stores, especially in the US, are taking a high-end, design-forward approach to cannabis retail, with noteworthy and creative examples including shops within shops, hybrid retail formats and shipping containers. But how does t
does this revolution impact the rest of the retail industry, and what is the future of cannabis retail in Australia?
Cannabis in Australia
Australia made cannabis consumption illegal almost 100 years ago, yet recreational use is currently at an all-time high. There are an estimated 2.1 million cannabis users in Australia — the highest per capita usage rate in the world. It is the most-used illicit drug in the country, with 35 per cent of people saying they have used it at some point in their lives, and 11 per cent using it in the past 12 months.
In 2016, the Federal Government legalised growing cannabis for medicinal and scientific purposes and legalised the use of medicinal cannabis, and attitudes towards the legalisation of recreational cannabis use in Australia are changing. According to the 2019 National Drug Strategy Household Survey, 41 per cent of Australians now support the legalisation of cannabis, 37 per cent remain opposed, and 22 per cent remain undecided.
As part of its Oceania Cannabis Report: Second Edition, the international drug research firm Prohibition Partners indicates the cannabis industry in Oceania is expected to be worth US$1.55 billion by 2024, with medical cannabis accounting for about 40 per cent of that amount.
This would create exciting opportunities for bricks-and-mortar outlets and online sellers to explore the world of high-end cannabis retail spaces.
Design innovation
Cannabis sales in the US are expected to triple by 2023 to $30 billion, by which time dispensaries are expected to have a high-street presence across most of the country. As a result, retailers are looking to distinguish their brands by enlisting high-end architects and designers.
It can be difficult, though, to maintain brand consistency nationwide as each state has its own laws and restrictions surrounding the use and sale of cannabis. In many states, products and marketing assets cannot be visible from outside the store.
Regardless of the list of legal obstacles that need to be addressed, cannabis retailers are opening some of the most modern and tech-savvy stores across the US and Canada.
Most operators agree that stores dispensing a legal high should distinguish themselves from those that work on a prescription basis.
The aesthetics of high-concept cannabis dispensaries range from the rustic to the cutting edge, bright and white to warm and womb-like. There is a major emphasis on branding and experience, as with most of the retail world, and some spectacular, creative designs have already been achieved.
The largest cannabis retailer in the US, MedMen, is big on branding but has trouble maintaining consistency. It varies between rustic Whole Foods and pristine Apple. The usual MedMen signature is a scarlet palette with floor-to-ceiling wood panelling, but it’s Manhattan boutique is white with vaulted ceilings, corniced white walls and arches.
Meanwhile, Apothecarium resembles a boutique hotel rather than a dispensary. Architect Vincent Gonzaga said he wanted to make people feel comfortable, not as if they were going into a “drug den”. There are chandeliers, long panelled bars equipped with foot rails and black and white floor tiles, reminiscent of old-world San Francisco.
Of all new-wave dispensaries in the US, Seattle’s Reef, clad in commissioned street art, looks the most like the head shops of the ’60s and ’70s and is frequented by users at the top end of the target demographic.
Kirsten Murray, lead architect and a principal of agency Olson Kundig, which designed Reef, created a bright open space within a dilapidated building that once housed a pizza restaurant and a car showroom. The idea was to celebrate the accessibility of a newly legal product by showcasing everything in glass.
Reef also operates as a farmer’s market for local growers, who come in to present their product, but Washington’s conservative laws mean tightly controlled displays.
Whatever the challenges and legal restrictions, these dispensaries prove that the possibilities for design innovation are limitless. And if Australia legalises recreational cannabis nationally, there could be a dispensary coming to a high street or shopping centre near you.
Sean Byrne is group director for retail and commercial, and associate at ThomsonAdsett.