Cannabis retailer Planet 13 Holdings Inc (CSE:PLTH) broke its own record bringing in more tha 115,000 visitors at its flagship Las Vegas SuperStore location — the largest dispensary in the world.
Unlike many American-based pot firms, Planet 13 hasn’t looked to expand into the patchwork of U.S. legal markets as quickly as it can. Instead, its focus has been on developing its operations in Nevada. While it does have plans to expand into California, its SuperStore location is what’s driving the company’s results today.
The company released last week its foot traffic numbers for August, and not only did the total number of visitors more than double when it first opened its doors last November, but average ticket price was also up. Among the average 2,027 daily customers at the massive pot store, the average amount spent came in above US$90, up from under US$80 spent in its first two months of 2018.
Looking for your new favorite product? Our knowledgeable budtenders can help you find exactly what you’ve been looking for. 🙌
— Planet 13 Las Vegas (@Planet13lv) August 4, 2019
Planet 13’s model appears to be working
Planet 13 has focused on making its SuperStore location a tourist attraction for all types of visitors by recently adding a cafe, pizzeria and event center. The company also announced last week it made a deal with the owner of a multi-level immersive cannabis art museum that will soon feature 20 unique installations that celebrate cannabis art, culture and history.
The strategy appears to be working, as the SuperStore alone accounts for close to 10 per cent of all dispensary sales in Nevada state.
“In the highly competitive Las Vegas market the SuperStore continues to dominate based on the strength of the customer experience and the unique entertainment it offers. Over the rest of the year we will continue to rollout new and exciting restaurants, stores and attractions allowing customers to eat, shop, and play all under one cannabis inspired roof.”
– Bob Groesbeck, Co-CEO of Planet 13
Las Vegas tourists are looking for spectacle and Planet 13 is building an iconic location for not only cannabis enthusiasts, but for non-pot users to visit as well. Although the percentage of people making purchases has declined from three-quarters to 55 per cent, the sheer volume of foot traffic continues to break records. The company is banking on the higher volume of visitors to help bolster sales on ancillary products and food purchases.
Command of the Nevada market continues
Planet 13 and its world’s largest cannabis store is not only capturing a tenth of the market share in Nevada, but it has helped the company post a positive EBITDA (earnings before interest, taxes, depreciation and amortization) in its last quarter of US$2.7 million.
That’s a sizable accomplishment for Planet 13 and helps to show just how far it has come in what’s been one of the hottest markets for cannabis in the U.S. But with growth expected in opening a cannabis shop both in Nevada and California, while also holding production and cultivation licenses in Las Vegas, its recent success could be just the tip of the iceberg.
Shares of Planet 13 are up close to 70 per cent from the start of the year, which makes it a rare pot stock that hasn’t been beaten down by a scandal-filled summer.