Fighting for Share in New York’s Cannabis Boom As Retail Experiences Raise Questions In A Regulated Environment

When Planet Nugg shut down briefly last month, Dave Tubens knew he had one shot to get it right. The Long Island dispensary faced a market where licensed cannabis retailers nearly tripled in 2024, leaving operators scrambling to capture customer loyalty in a market approaching $1.5 billion in total sales.

‘This wasn’t just a tune-up – it was a full launch sequence,’ said Tubens, explaining the closure that preceded the dispensary’s 11 June reopening. His gamble: double down on experiential retail when most competitors focus on price and inventory.

Fighting for Share in New York’s Cannabis Boom

The competitive pressure is real. New York State now hosts 368 licensed dispensaries as of April this year, with the strongest retail sales concentrated in downstate regions including Long Island. Social and Economic Equity applicants hold significant market share, and with 12.6% of adults reporting recent cannabis use, demand remains strong but increasingly fragmented across more locations.

Long Island operators like Strain Stars are already carving out niches with premium craft cannabis and personalised service. For Planet Nugg, the answer lies in transforming the shopping experience itself rather than competing solely on product or price.

The Technology and Flow Overhaul

Planet Nugg’s closure allowed for systematic upgrades across operations. The dispensary installed new point-of-sale technology designed to speed up checkout times and implemented a redesigned customer flow that reduces bottlenecks during peak hours. Enhanced security measures now meet evolving state requirements whilst maintaining the welcoming atmosphere that earned the dispensary Farmingdale’s Outstanding Customer Service award.

The new loyalty rewards app represents the biggest operational change. Research from cannabis retail specialists shows that integrated loyalty programmes can significantly boost customer lifetime value and repeat visits when properly implemented. Limited-time offers and loyalty programmes have proven effective across retail sectors. Planet Nugg’s system tracks purchase patterns and preferences to enable targeted promotions and personalised recommendations.

Hands-On Product Experience

The real differentiator sits in Planet Nugg’s approach to product interaction. The upgraded Bud Bar now features Puffer Pods – devices that let customers examine cannabis flower through built-in magnifiers before pressing a button for a controlled terpene aroma release. This tactile experience addresses a fundamental challenge in cannabis retail: how to let customers properly evaluate products in a regulated environment.

The summer-long ‘Weedkends’ programme builds on this experiential foundation with brand pop-ups, exclusive product drops and in-store events designed to create reasons for repeat visits beyond simple transactions. Each weekend offers different experiences, from product education sessions to brand partner collaborations.

Brand Partnerships as Traffic Drivers

Weekly meet-the-brands events represent Planet Nugg’s bet on direct engagement over traditional retail approaches. Cannabis brands from across New York State will host in-store sessions where customers can interact directly with product creators and company representatives. This approach mirrors successful cannabis marketing trends that focus on partnerships with lifestyle brands and community involvement.

The business logic is straightforward: brand partners bring their own customer bases whilst Planet Nugg provides the venue and experience. These events generate foot traffic during traditionally slower periods and create opportunities for customers to discover new products through personal interaction rather than passive browsing. Building customer relationships through consistent service has proven profitable across industries.

Scale and Service Numbers

Planet Nugg stocks over 1,700 products across its expanded retail space, positioning itself as what it calls Long Island’s ‘cannabis dispensary superstore’. The company’s recent customer service recognition provides credibility for its experience-focused approach, particularly in a market where differentiation increasingly depends on service quality and brand identity rather than pure product availability.

‘Taking a small step back gave us the opportunity to leap forward and deliver the next level of service our customers truly deserve,’ Tubens explained.

The Bet on Physical Retail

Planet Nugg’s investment in enhanced physical retail experiences raises questions about long-term viability in sectors facing increasing online competition and price pressure. Cannabis retail data suggests that integrated loyalty programmes and experiential elements can improve customer retention, but success requires consistent execution and ongoing investment in staff training and technology updates.

The Farmingdale dispensary’s approach assumes customers will pay premium prices for enhanced experiences and personal service, even as the market matures and price competition intensifies. Whether this approach scales beyond the initial novelty phase will depend on Planet Nugg’s ability to convert foot traffic into loyal customers who choose experience over convenience or price. The cannabis industry continues to mature, demanding more sophisticated business strategies.

The summer Weedkends programme will provide early indicators of whether experiential retail can generate lasting competitive advantage in New York’s rapidly evolving cannabis market. For operators watching from the sidelines, Planet Nugg’s bet on experience over efficiency represents one answer to the fundamental question facing cannabis retail: how to build lasting customer relationships in an increasingly commoditised market.