Green Growth Brands Inc. (CSE:GGB) (OTC:GGBXF) Is Beating The Retail Pot Industry’s Average Sales Performance By Over 8x…No Surprise They’re Expanding Like Gangbusters
“We expect to open over 200 shops this year and are confident that we are building one of the largest and most valuable distribution networks for CBD.”
Peter Horvath, CEO of Green Growth Brands
Green Growth Brands Inc. (CSE:GGB) (OTC:GGBXF) has a very good thing going: C$19,717 of revenue per square foot. That’s 8.5x higher than the pot industry’s average. No wonder they’re pulling out all the stops to get in front of more consumers as fast as possible and grow their revenue to new highs.
Just look at some of the rapid market inroads Green Growth Brands (CSE:GGB) (OTC:GGBXF) made in the first half of 2019 that are turning the heads of analysts and competitors:
- Launched ecommerce site for their Seventh Sense Botanical Therapy brand so consumers can buy their CBD-infused personal care and beauty products online
- Partnered with Brookfield Properties to open 70+ shops in prime locations giving Green Growth Brands (CSE:GGB) (OTC:GGBXF) access to millions of US consumers
- Opened their 51st Seventh Sense Botanical Therapy shop with over 100 products (their first opening was only 4 months earlier)
- Expanded their partnership with Abercrombie & Fitch (A&F) to sell Green Growth Brands’ (CSE:GGB) (OTC:GGBXF) CBD products in over 160 A&F stores (up from 10 trial stores)
- Major wholesale agreement to sell their CBD-infused wellness and personal care products in nearly 500 American Eagle Outfitters stores and online
- The first line, MOOD will consist of 45 products with a non-gendered appeal and 6 distinct smells: Chill, Energized, Focused, Refreshed, Soothed, and zZz. This collection will be followed by a more expansive product line as American Eagle and Green Growth Brands (CSE:GGB) (OTC:GGBXF) continue to develop a long-term growth opportunity
- Raised over C$50 million in capital to help expand the business
If it looks like Green Growth Brands (CSE:GGB) (OTC:GGBXF) is expanding at an exceptional speed, that’s because their plan is to be everywhere in the retail pot sector by opening over 200 of their Seventh Sense Botanical Therapy shops and by having their CBD products for sale in over 400 distribution points by the end of 2019.
The good news for Green Growth Brands (CSE:GGB) (OTC:GGBXF) and their investors is that they’re on track to hit those goals for more than one reason.
Smart Acquisitions Accelerate Market Penetration
In June 2019, Green Growth Brands (CSE:GGB) (OTC:GGBXF) acquired Spring Oaks Greenhouses, Inc. based in Florida. The Spring Oaks acquisition built on Green Growth’s existing multi-state operator (MSO) presence in Nevada and Massachusetts by giving Green Growth the ability to open up to 35 dispensaries in Florida with the potential for more.
An earlier strategic acquisition was Green Growth Brands’ (CSE:GGB) (OTC:GGBXF) purchase of The+Source, one of the best performing dispensaries in Las Vegas, with sales of $17 million compared to the average Nevada dispensary coming in at only ~$8 million.
The+Source is a vertically integrated medical and retail marijuana company with 4 Nevada marijuana licenses, including dispensary, cultivation, production and distribution.
Green Growth Brands (CSE:GGB) (OTC:GGBXF) Beats Apple and Tiffany On Sales Per Square Foot
Whether you like Apple or not, it’s undeniable that they’re amazing at retail. That’s why they have sales per square foot of C$7,294 when the retail sector as a whole only averages a paltry C$427 per square foot. But not Green Growth Brands (CSE:GGB) (OTC:GGBXF). Their cannabis segment pulled off an impressive C$19,717 per square foot for the nine months ending March 31, 2019.
That’s 8.5x more than the pot industry’s average of only C$2,331 per square foot, and enough to rattle the competition while putting Green Growth Brands Inc. (CSE:GGB) (OTC:GGBXF) in a league of their own when it comes to delivering experiences and products that make consumers open their wallets.
That performance also puts Green Growth Brands Inc. (CSE:GGB) (OTC:GGBXF) squarely ahead of key competitors while outperforming legendary retail giants, as seen in the table below:
* Green Growth Brands, Planet 13, Apple and Tiffany numbers converted to CDN at exchange rate of 1.31526
** Last Prices closing on September 30, 2019
Claiming the top spot in the retail pot industry for sales per square foot goes to confirm that CEO Peter Horvath and the company’s team of retail experts have what it takes to continue delivering on Green Growth Brands’ (CSE:GGB) (OTC:GGBXF) sector-dominating retail performance and brand positioning.
Which could be why in mid-May Canaccord Genuity Capital Markets suggested Green Growth Brands’ (CSE:GGB) (OTC:GGBXF) share price was undervalued. After noting Green Growth’s healthy balance sheet (and that was even before their recent $50M capital raise) and management team with retail experience, the Canaccord analysis increased its price target from $5.50 CDN up to $6.50 CDN.
Expanding Their Brand Presence Across the US
In addition to scoring the major retail partnerships mentioned earlier…
- Brookfield Properties (70+ shops in prime locations)
- Abercrombie & Fitch (CBD products in 160+ A&F stores)
- American Eagle Outfitters wholesale agreement to sell CBD-infused personal care products in nearly 500 stores
…Green Growth Brands Inc. (CSE:GGB) (OTC:GGBXF) has also gained major brand exposure by aligning itself with Simon Property Group Inc. and leading shoe-retailer DSW.
In February 2019, Green Growth Brands Inc. (CSE:GGB) (OTC:GGBXF) announced their partnership with Simon Property Group, Inc., an S&P 100 company and the largest shopping mall operator in the United States. The partnership opens the door for Green Growth’s Seventh Sense Botanical Therapy brand and other GGB brands to be front and center in 108 prime locations across the US by the end of 2019.
The sheer scale of the Simon Property Group partnership gave Green Growth Brands Inc. (CSE:GGB) (OTC:GGBXF) an unprecedented advantage in the CBD industry by opening access to entire markets of new customers looking for rewarding new consumer experiences and products at many of America’s hottest retail locations.
The President of Simon Malls, John Rulli, captured the win-win-win fit that the partnership represents:
“We are constantly on the lookout for cutting-edge new concepts, like the GGB shops. We are committed to adding new and dynamic retailers and uses to our shopping destinations, and the GGB shopping experience is exactly the type of innovation our customers want and expect from us.”
Only a month before the Simon Property Group partnership was announced, Green Growth Brands Inc. (CSE:GGB) (OTC:GGBXF) partnered with DSW Inc., the number one full line adult footwear specialty retailer in North America.
The DSW partnership enables Green Growth Brands Inc. (CSE:GGB) (OTC:GGBXF) to sell its Seventh Sense Botanical Therapy brand CBD personal care products at 96 DSW stores throughout the US. According to the official announcement:
“During the first 10 weeks of the test period, 74.4% of product presented on shelves was sold, significantly exceeding expectations.”
Management Team With World-Class Retail Background
“The team we’ve put together is arguably one of the top retail teams in any market, let alone pot.”- Peter Horvath, CEO of Green Growth Brands
The Green Growth Brands Inc. (CSE:GGB) (OTC:GGBXF) team represents the mix of big-brand experience and corporate building needed to sustainably grow a market-disrupting company in an emerging market like retail pot.
Here are the key management players enabling Green Growth Brands (CSE:GGB) (OTC:GGBXF) to continue its march toward rapid growth and market penetration:
Peter Horvath, CEO:Mr. Horvath has the enviable background of having held leadership positions for top brands such as Victoria’s Secret, American Eagle Outfitters, DSW and Limited Brands. While under his leadership, DSW executed a $1.5 billion IPO onto the NYSE. When it came time to secure funding for Green Growth Brands Inc. (CSE:GGB) (OTC:GGBXF), he raised C$85 million in a private placement (the original target was C$55 million, and today he capably leads Green Growth’s strategy and execution.
Randy Whitaker, COO: Mr. Whitaker oversees Green Growth Brands’ (CSE:GGB) (OTC:GGBXF) interests in real estate, physical stores/shops and online sales. His extensive executive retail experience includes having worked alongside Peter Horvath for years at retail phenomenon, Victoria’s Secret, where his 5 years as EVP, Store Operations included maintaining a US$2 billion operating expense budget while being responsibile for 1,100 stores with US$6 billion in annual revenue.
Ed Kistner, CAO:Mr. Kistner’s 33-year career in retail business included key leadership positions at Victoria’s Secret and DSW. Today he brings the lessons learned from firsthand experience in world-class brands to give Green Growth Brands (CSE:GGB) (OTC:GGBXF) a leadership edge.
Kellie Wurtzmann, CSO:Ms. Wurtzmann’s operations management experience spans diverse retail sectors, including large retail brands such as Victoria’s Secret, Luxottica and Virgin Entertainment. Her knowledge of what makes a successful brand now plays into Green Growth Brands (CSE:GGB) (OTC:GGBXF) identifying and leveraging business development opportunities.
why Green Growth Brands (CSE:GGB) (OTC:GGBXF) could win the race to dominate the retail pot sector
Smart Acquisitions Accelerate Market Penetration
Through strategic acquisitions such as the Florida-based dispensary Spring Oaks Greenhouses, and leading Las Vegas dispensary The+Source, Green Growth Brands Inc. (CSE:GGB) (OTC:GGBXF) has proven their ability to rapidly grow their market presence, enter new sectors, expand their portfolio of brands, and leverage existing customers.
Dominant Performance In Sales Per Square Foot
With an outstanding C$19,717 of sales per square foot, Green Growth Brands Inc. (CSE:GGB) (OTC:GGBXF) has sales performance that’s 8.5x greater than the pot industry’s average. Dominating the retail pot industry in this way demonstrates that Green Growth Brands (CSE:GGB) (OTC:GGBXF) has what it takes to continue outperforming the sector while generating the revenue needed to fund its expansion plans.
Retail Partnership Strategy
The Green Growth Brands (CSE:GGB) (OTC:GGBXF) partnership to sell CBD personal care products at 96 DSW stores marked the beginning of Green Growth’s proven strategy of expanding its sales through external partnerships. The strategy’s success was confirmed by above-expectation sales of 74.4% of product presented on shelves during the first 10 weeks of the test period.
Rapid Retail Locations Expansion
By securing major retail name partnerships, Green Growth Brands Inc. (CSE:GGB) (OTC:GGBXF) is on track to opening 200+ Seventh Sense Botanical Therapy shops and having CBD products for sale in 400+ distribution points by the end of 2019. Inroads include partnerships with the Simon Property Group (108 shopping centers), Brookfield Properties (70+ shops in prime locations), Abercrombie & Fitch (CBD products in 160+ A&F stores), and a major wholesale agreement to sell CBD-infused personal care products in nearly 500 American Eagle Outfitters stores. The agreement will begin with the launch of MOOD, a collection of 45 genderless personal care products which includes body lotion, hand cream, face oil, pillow mist, muscle balm, lip salve, bath essentials, and aromatherapy items.
Management Team With World-Class Retail Background
Retail expert, CEO Peter Horvath, not only leads the Green Growth Brands Inc. (CSE:GGB) (OTC:GGBXF) team, but has the competitive advantage of drawing on the team’s leadership experience at top-level brands including Victoria’s Secret, American Eagle Outfitters, DSW, Limited Brands, Luxottica and Virgin Entertainment. Lessons learned at those best-in-breed brands are advantages available to the Green Growth Brands Inc. (CSE:GGB) (OTC:GGBXF) team when it comes to disrupting and leading the retail pot sector.