The Nevada-based retailer is looking to expand its market share.
As the small get weaker, the big get stronger by gobbling them up. Or they just wait for the weak to die off, and then take over their territory.
That’s the simple version of what Nevada-based Planet 13 Holdings’ leadership discussed as a likely strategy for their home state in 2023, since they believe many other retailers are on “life support” and ripe for acquisition, due to price compression and a broader slowdown in sales as the economy continues to tighten.
The possibility fits perfectly with Planet 13’s goal of increasing its market share, from roughly 8.5% to around 12% or higher, the company’s co-CEO’s said during thefourth quarter earnings callon Thursday.
“We’ve got a lot of stores that are struggling. We think that’s going to create some opportunities for us here in the near-term,” said co-CEO Bob Groesbeck.
“There are some that are on life support, a number of them. The problem is, (the state) keeps granting licenses. So, we’ve got a number of dispensaries that continue to prop up, but they’ve got no market share,” Groesbeck said. “The length of operation is very, very short, particularly the stand-alone… They’re basically on fumes right now.”
Groesbeck said Planet 13 might consider buying some distressed assets in northern Nevada, but he indicated it would be more likely to expand around the Las Vegas area.
Regardless, Groesbeck predicted, the situation is already dire enough for a sizable chunk of Nevada cannabis companies that “there will be no shortage of (acquisition) opportunities here as we go into this fall.”
