Works by Alana Biffert are among the many pieces of artwork that help FivePoint Cannabis differentiate itself within Canada’s highly competitive retail industry.
Despite four successful years in operation, amassing and retaining a strong workforce, and possessing a differentiated niche, FivePoint Cannabis in Calgary, Alberta, began to feel the pressure of price compression just as many other retailers and producers in Canada have.
The burgeoning cannabis industry is not free from tumultuousness; a relaxation of protectionist laws, a potentially misguided federal strategy of outpricing the illicit market, and other regulations ensure businesses that succeed need to be nimble and creative. Amid the chaos, FivePoint has weathered the ongoing industry storms and succeeded with more out-of-the-box strategies, leading to the successful opening of a second, high-profile location in downtown Calgary. Although FivePoint’s flagship location in the Bridgeland community was serving more customers, had higher units per transaction and benefited from the easing of many legislative regulations, the store’s revenue decreased year over year. This can be attributed to extreme price compression (50%) combined with a relaxation on the number of licenses, and laws that prohibited vertical integration initially promised to early adopters.
The small, woman-owned company expanded to a second location right in the heart of the culture and entertainment district on First Street in Calgary. This Victoria Park location opened its doors on September 25, 2023, featuring a beautiful picture window and expansively high ceilings in a historic building, allowing the bright Calgary sun to flow in and highlight local art in the gallery space. Often referred to as a cannabis shop in an art gallery, both spaces feature local artists throughout, with Victoria Park focusing primarily on glass art. This new space has become home to local glass works of Alana Biffert, paintings from Sarah Lamoureux and myriad custom smoking supplies from local glass workers. FivePoint prides itself as a creative hub and strongly believes in supporting the local economy. By exhibiting high-end, Alberta-based artists in its gallery spaces, FivePoint stays fresh and exciting while connecting with the artistic community. With the understanding that art has acted historically as a conduit for legalization, FivePoint’s goal is to provide measurable impacts to Canadian fine artists. Not only has the company created a space for artists to showcase their work, but it has also provided the opportunity for visual artists to commodify their art onto their custom accessory line and contribute to other promotional materials such as the iconic FivePoint-branded bags. Customers have the opportunity to purchase pieces of art on various smoking supplies, helping to incorporate creativity into their cannabis ritual. Striving to authentically capture and pay homage to the rich tapestry of cannabis culture that thrived in the “legacy” and grassroots era prior to legalization, FivePoint’s brand is dedicated to preserving the essence of the foundational period and embracing the values, traditions and community spirit that defined cannabis enthusiasts for decades prior to legalization. FivePoint’s menu emphasizes both Albertan and Calgary grown cannabis, as well as legacy production and women- and Indigenous-owned licensed producers. Creating strong and unique community connections are critical to ensuring the longevity and prosperity of any small business, and even more so as the cannabis industry continues to shift and adapt.
McKenna Prather is another artist whose work has been displayed at FivePoint Cannabis in Calgary.
Community engagement plays a pivotal role in FivePoint Cannabis’ relevancy and resilience. FivePoint has successfully been involved in many local events, including the first fully sanctioned cannabis event on city property — a “puff and paint” market — along with adult-themed yoga and women’s events, and the company has orchestrated its own take on customer-focused education sessions. Community initiatives such as the annual “World Ocean Day River Clean Up” and a first-ever “Amazing Spacey Race” ensure that FivePoint is a staple throughout the community that supports other Calgary businesses. By fostering this sense of community, safety and education, FivePoint Cannabis has not only retained customer loyalty but also continues to strengthen its brand and reach new customers. In a difficult market, product and brand differentiation only solves some of the financial problems that price compression, competition and vertical integration pose. By increasing total revenue through the traffic garnered at its new Victoria Park/First Street location, the company was able to increase labor hours while improving overall labor costs by giving staff with the opportunity to work at one or both stores. Adding a second location allowed FivePoint to blend some hard costs, and by transferring inventory and slow-moving items from store to store, FivePoint can operate as an adaptable and versatile entity. An additional strategy that FivePoint Cannabis employed to stay relevant and create a foundation for expansion was an emphasis on e-commerce.
Owner and operator Alena Jenkins worked tirelessly to campaign the Alberta government and Alberta Gaming Liquor and Cannabis to remove a harmful and antiquated “hard age-gate” that had instantly decimated e-commerce across the province by more than 300% at its inception. Recognizing the increasing importance of online sales, particularly through the COVID-19 pandemic, Jenkins worked to find an equitable workaround to remain user-friendly and accessible. A strong dedication to menu and product accuracy and stock throughout online listings has maintained the business’ customer base and attracted new clients who appreciate the ease of browsing and ordering from the comfort of their homes. Basket averages are proven to be higher when shopping online. Finding ways to encourage guests to shop online has benefits for all retailers.
Combined with other lobbying efforts, FivePoint has been an industry leader in pushing the regulatory framework to work for the cannabis industry while ensuring public safety remains paramount. Jenkins’ board work and the team’s dedication to continuing conversations on industry panels have led to FivePoint being the first to remove dangerous window wrappings in Calgary, a point of contention for a community resistant to allow a cannabis license in the first place. Window wrappings are a detriment to workplace safety, and FivePoint is proud to be a front runner in ensuring staff safety. Success in this industry is not guaranteed. Cannabis, for most, is a labor of love and one that requires creative thinking, compassionate and flexible working environments, a dedication to working with government to find equitable solutions, and the ability to adapt. FivePoint’s dedicated enthusiasts, combined with a strong leadership team, have allowed the company to continue to grow and push the industry forward.