by Melinda Yoo Sungrown Studios
How to maximize your space, increase profits, and move inventory when there are no sales
It can be difficult to market a dispensary. There are many factors to take into consideration: different brands, product types and customer needs; compliance, promotions, security, and security are just some of the many. The traffic low in a dispensary is often determined by the product placement. If not planned and executed well, certain products can create traffic flow bottlenecks in a floor plan. Sometimes, the merchandising process is pushed to the side and takes precedence over the front of the house layout. Sometimes, product placement and merchandising can be left to the last minute or worse, someone with no experience.
Another important aspect of merchandising is that it must be compatible with the brand’s vision and overall customer experience. There are many factors that affect the customer journey. Without a deep understanding of customer trends, store layout conventions and general marketing and design, hiring professionals is the best way to make sure you have everything covered.
These guidelines will guide you and your team in merchandising and achieving a professional and cohesive look to your cannabis dispensary.
The old saying “Less is More” applies to this situation in a huge way. Having too many products on a single display can create visual clutter and take away the “specialness” of each package. I recommend that you have no more than three SKUs on one display. You may need to reduce the number of SKUs if the packaging is too large or too tall. To give visual breaks between products, you need to leave enough space around them.
Signage and information cards can also be reduced to a minimum. Font overload, or forcing customers to scan QR codes continuously detracts form the product and detracts the implied budtenders relationship to the customer. Digital menu boards are often unsuccessful because of this. You can control what your rented shelf space looks with your vendors. You should ensure that you have clear guidelines in your contract. These guidelines will outline what the topper or display of your rented shelf space will look like. It is not a good idea to allow them full control of your well-planned dispensary. A common mistake in merchandising is visual clutter and font overload.
Consider your human scale. Sometimes fixtures have heights and depths that are calculated to allow for as many products as possible. This is not an indication of how easily someone can see or reach the product. This is especially true for vision merchandise tables and cash wrap vision cases. You will need to move around, reach up to the center or back to view it. Or you can lean over to inspect it. Do your employees have to bend and reach for products all the time? Or do they turn their backs to the customer? The customer won’t feel uncomfortable looking at your products if the scale is accurate. Furniture is no exception. Your space’s comfort level will depend on the size of your tables, seating, and reception desks.
To begin planning your shelves or cases, it is a good idea to check your profit margins using SKUs. To determine which products are the most popular in the cannabis dispensary, you will need to compile an inventory list that includes markup percentages, top selling products and unique products. It may surprise you to find out what you discover. Each fixture will have a hot area, which is an area customers tend to gravitate towards and choose products from. These top-selling areas should be taken full advantage of.
You should identify the “hot spots” in your space. Your interior store merchandisers will have a system for identifying these areas. You can take a good snapshot of your store if you go to it on a Saturday. Pay attention to how customers enter the store. Which direction did they go? Which side do they look at first? Which side do they see when they look at a wall or a vision box? How high are they standing? What was their standing time? Take some notes to see if they are all shopping in the same area. Is there an area of your dispensary customers seem to avoid? These areas should be noted. Which products are they? These products are not trendy? Are they made of ugly or incongruous packaging? Are the fixtures poorly lit? Too much signage? Compare that with what you see on slower days and at different times. Are these results consistent?
This is often called “journey tracking” and it will give you amazing insight into how your fixtures and store layout are working for you. It’s fascinating to track customer shopping habits and it will likely give you the information you need to adjust your existing floor plans or shelf conventions.
You can make them meander. Dispensaries often have a narrow footprint. It is common to place all your cases along the sides and checkout counters at the back of the shop, leaving the middle empty. If you are able to take steps to prevent customers from leaving your store at different points, and encourage them to travel in a more circular fashion, then floor plans that look like a runway can be very successful. You are not capturing the sales potential of your space if your customers go straight to the back counter, then back out the door. I like to place staggered fixtures in the middle of the space. They are not too high to create a security blind and can display impulse items, various products, or merch, when appropriate. The guest will be encouraged to walk in a zig-zag pattern through these meandering tables. Hot zones will also be created by the items located on the walls outside the tables. You can use this to maximize your merchandising potential. These areas can be highlighted with LED light spots or strips.
Stop complicating things. Get rid of the clutter, QR codes, digital, and repetitive information. It’s a great idea to visit your favorite store. You don’t need to go to a dispensary, but you can find a boutique or shop that you love. While you’re there, create your own self-customer journey. Recall how you got there, what you did, where you stopped, and where you bought your product. Consider how the product was presented to your eyes. Do you feel compelled to purchase more because of the layout or merchandising?
You can improve the customer experience at your dispensary by thinking critically about how you shop. Sometimes, it’s helpful to have a new perspective.
It’s a great way of ensuring that all locations have the same standard in merchandising practices. This will ensure that you are using tried-and-true methods to increase sales and food traffic, and present your dispensary as a beautiful, organized, profitable place.
Melinda Yoo designs award-winning, profitable cannabis retail dispensaries in North America. Her clients are well-known and her vision for cannabis is unsurpassed. She guides her team through the technical and creative processes that create unique retail experiences that are both jaw-dropping and profitable.
Melinda spent over a decade working in Chicago’s traditional residential interior design firm. She then decided to follow her curiosity and start her own retail interior design and merchandiser business. She fell in love quickly with dispensary design, and all its quirks.
She has been the leader of Sungrown Studio since then. Sungrown Studio was recognized for its magazine-worthy retail environments as well as her thought leadership. mg Magazine named Sungrown Studio Dispensary Design Master 2022. Melinda continues to create amazing retail stores that reflect the brand and values of her clients.
She can be found hiking with her dog, or caring for her three children when she isn’t leading her kickass group.
The post Member blog: Merchandising In Your Retail Dispensary – How to Make the Most Of Your Space and Increase Profits originally appeared on The National Cannabis Industry Association.
