Why Cannabis Customers Are Gravitating Toward Brick-And-Mortar Stores, Not E-Commerce

Socrates Rosenfeld, CEO of Jane Technologies, recently shared some intriguing insights on consumer behavior within the cannabis industry on Benzinga's Cannabis Insider. Rosenfeld highlighted the natural propensity of customers to gravitate toward local dispensaries, drawing parallels between this inclination and routine grocery shopping habits.

Drawing an insightful comparison to our habitual visits to the grocery store, Rosenfeld said, "The customer wants to go and visit their local dispensary. Like we all visit our local grocery store, right?" He stressed the role of convenience in this trend, arguing that just as individuals are inclined to shop at a nearby grocery store, the same is true for cannabis users visiting local dispensaries.

The idea of convenience plays a significant role in this scenario. As Rosenfeld observed, one might opt for the grocery store down the street because they know where everything is, not necessarily because it's the best option available. He described the parallels with cannabis shopping: "I know where everything is in the aisles. I go to the gym, I come back, I go to the grocery store. It's right there."

This analysis disputes the assumption that online platforms, such as third-party marketplaces or brand websites, would naturally supersede brick-and-mortar stores due to increased convenience. On the contrary, Rosenfeld asserts that customers are displaying a natural gravitation toward physical retailers in the cannabis sector. He mused, "In cannabis, there's been a really kind of...natural gravitation towards the retailer versus going to a brand's website or going to a third party marketplace."

Rosenfeld's insights shed light on the nuanced dynamics of consumer behavior in the burgeoning cannabis industry. His commentary not only underscores the significance of the physical retail experience, but also hints at the potential for greater shifts in consumer behavior as the industry continues to evolve.