Where some cannabis companies see trouble, Planet 13 sees opportunity

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Certain cannabis companies are feeling the squeeze, but Planet 13 is ready to jump

Sometimes, the misfortune of one is the happiness of the other. That will only depend on what actions and measures are taken in life (business in this case) to be able to excel even in difficult times. Planet 13 is not exempt from the strong headwinds that sometimes blow against the industry, but while some competitors may be anxious about it, the Nevada-based retailer creates an opportunity.

Planet 13 management does not intend to sit idly by and wait to be affected by what happens in the cannabis market. The leadership team recently discussed some strategies it plans to pursue during the year. Continued price compression and a further slowdown in sales as the economy slows means many other retailers are on “life support” and ready for acquisition.

Planet 13 has already made clear its intention to increase its market share, and this possibility fits perfectly with that goal. According to the company’s co-CEOs during last week’s fourth-quarter earnings call, the company expects to move from 8.5% to around 12% or more. “We have a lot of stores that are struggling. We think that will create some opportunities for us here in the near term,” said co-CEO Bob Groesbeck.

Planet 13 may be considering buying some distressed assets in northern Nevada, according to Groesbeck. However, the executive also said there is a higher likelihood that the company will look to expand around Las Vegas. This area is clearly prime for this type of business. Even if the company doesn’t make a wave of acquisitions in its home state, it is likely to benefit from the bankruptcy of some existing pot stores, said co-CEO Larry Scheffler.