Cannabis retail inside the United States will be fraught with “points of dissonance” inside the stores which exist today, retail industry veteran Peter Horvath, who today runs a cannabis-focused consumer products company, told CNBC on Thursday.
Horvath, a former L Brands in addition to American Eagle Outfitters executive whose newest employer, Green Growth Brands, will come public later which year, said he realized which when he visited 100 cannabis stores inside the United States on a mission to understand the landscape.
The idea was to visit all of them quickly “to ensure, eventually, you can see what the patterns are,” Horvath told “Mad Money” host Jim Cramer in an exclusive interview.
“In most retail experiences, there’s too many points of dissonance. In cannabis, which’s the same, except they’re even more extreme,” the CEO said. “There are things to admire, although generally, every single store will be underperforming its true market potential.”
Horvath described his experiences at the stores as “overwhelming.” Often, he said, there’s a security guard at the door in a bulletproof vest in addition to a gun who verifies each customer’s age — “very inviting,” he quipped — followed by a well-staffed, although disorganized retail experience.
“which’s not organized in a way which’s intuitive,” Horvath said. “You’re worried: am I in line? Are they going to make me buy something if I just want to ask a question? In which case, I got to the desk, ready to buy something, in addition to they said, ‘Did you register?’ Uh, no. ‘Oh, you have to register at the desk inside the front.”
which experience spoke to the disarray at many marijuana retailers which are currently operating inside the United States, Horvath said, qualifying which “everybody’s doing the best they can.”
in addition to, as an experienced retail executive leading a company backed by the Schottensteins, a family which helped build retail giants like DSW in addition to American Eagle Outfitters, Horvath will be setting out to trounce the competition.
“We’ve been fortunate enough to be part of the teams in addition to leading the strategies which yielded the No. 1 lingerie business inside the entire world [in L Brands’ Victoria’s Secret], the No. 1 personal care products business inside the entire world in Bath & Body Works, the No. 1 denim business in North America in American Eagle, in addition to the No. 1 shoe specialty business in North America, DSW,” the CEO said.
“We think not only are we maybe the first guys you’ve met in which industry who’ve operated multi-billion-dollar businesses, have taken them public inside the U.S. markets in addition to done all those earnings conference calls, although also, we’ve built brands coming from scratch in addition to brought them to consumers, competed for consumers with everyone else in addition to the result will be we arrived on the scene on top,” Horvath continued. “So I’d say the team we’ve put together will be arguably one of the strongest retail teams in any market, let alone cannabis.”