Planet 13 Enjoys Record Visitor Numbers But Conversion Drops

The Planet 13 [stock_market_widget type="inline" template="generic" color="default" assets="PLTH.CN" markup="(CSE: {symbol} {currency_symbol}{price} ({change_pct}))" api="yf"] superstore in Las Vegas received a record number of visitors in July as 110,813 people browsed its aisles.

However, the conversion rate dropped to an annual low of 54%, meaning just 60,044 of them spent money in the store. Each customer spent an average of $90.41 and that resulted a turnover of $5.4 million at Planet 13.

Conversion peaked in November 2018, when 55,433 people visited the store and 76% of them were turned into customers. The figure stood at 71% in February 2019, but it has been steadily decreasing since then, according to results released today.

Despite having more visitors than ever in July, it had its lowest customer base since February, illustrating that it needs to offer guests a more compelling reason to part with their cash.

It expects to have its public-facing dispensary open before the end of Q3, despite experiencing ongoing permit delays, and that could provide the boost it needs. A major expansion will also result in a café and bistro, and that could also push conversion rates up, while also encouraging visitors to spend more time at the complex.

Planet 13 captured a 10% share of the Nevada marijuana market in May 2019, which it referred to as an important milestone in its development, and the firm expects to retain that share when the state’s department of taxation releases its June and July figures.

“We continue to drive impressive results from the Superstore’s original 16,000 sq. ft. dispensary footprint in advance of the Phase II,” said co-chief executive Larry Scheffler. He added that the imminent expansion should generate increased visitor traffic as new attractions and spending opportunities are added to the Superstore.

Its own brands currently make up around 15% of its sales, but it aims to increase that to 50% once the new dispensary is completed, a move that should increase its profitability.

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The opinions provided in this article are those of the author and do not constitute investment advice. Readers should assume that the author and/or employees of Capital 10X hold positions in the company or companies mentioned in the article. For more information, please see our Content Disclaimer.

Martin Green is an experienced journalist with a strong focus on the cannabis, alcohol, and gambling industries. He is particularly interested in the political issues affecting the global marijuana trade, and he has a keen focus on regulation changes and legal topics. He holds a BA English Literature, MA Creative Writing and a National Qualification in Journalism diploma. He has worked in journalism since 2009 and written for a broad range of newspapers, business titles and magazines, including The Sun, The Metro, The Journal, Livestrong, Drinks Retailing News, Harpers, Sportsbook Review, Vital Football, Essex Live and Surrey Live. Address: 682 Indian Road, Toronto, Ontario, M6P 2C9. Phone: 416-721-8257.
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