High Tide Becomes North America’s First Cannabis Discount Club Retailer with over 245,000 Members
High Tide Inc. has transitioned all Canna Cabana retail cannabis stores to a discount club model, enhancing its presence in the value segment and claiming the title of North America's largest cannabis discount retailer. The Cabana Club loyalty program offers exclusive low prices and benefits to over 245,000 members. This strategy aims to capture market share from the illicit cannabis sector, which accounts for 40% of sales, and reflects a successful pilot program that showed significant sales increases. High Tide plans to expand this model across Canada and potentially globally, leveraging its in-house brands.
- Transitioning to a cannabis discount club positions High Tide as North America's largest cannabis retailer.
- Successful pilot projects demonstrated a 184% increase in consumption accessory sales and significant growth in THC product sales.
- Strategic focus on converting customers from the illicit market, valued at over $3 billion in annual sales.
- None.
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Starting today, all Canna Cabana retail cannabis stores will transition to a discount club concept with exclusive benefits targeted to
Cabana Club members. This accelerates High Tide’s previously-announced entry into the value segment, and positions the Company as the largest cannabis value retailer overnight. -
High Tide’s mature ecosystem of in-house brands and products perfectly positions the Company to become an exclusive cannabis discount club retailer and to eventually grow its
Cabana Club loyalty plan into a global, membership-based cannabis community. -
Approximately
40% of Canadian cannabis sales are still conducted through the illicit market.1 With over70% of Canadian cannabis consumers being especially price-sensitive, this announcement positions High Tide to gain market share by converting legacy customers intoCabana Club members.2 -
Cabana Club members will gain exclusive access to everyday low prices, member deals, and high-quality proprietary consumption accessories and brands. As regulations evolve, the Company also plans to explore the potential to launch subscription boxes forCabana Club members, featuring brands and products from High Tide’s portfolio companies. - Same-store sales and customer loyalty are projected to continue their upward trajectory in the coming weeks and months based on the results from two successful pilot projects which the Company undertook beginning in mid-April, that involved reduced margins on consumption accessories and THC products.
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Regulatory environment permitting, the Company may explore the potential to introduce a membership fee for the
Cabana Club , and provide annual profit share/cashback or other perks to members.
Starting today, all of High Tide’s retail cannabis stores will begin to offer steep club discounts on cannabis products in addition to existing member-only discounts on consumption accessories, as well as other exclusive benefits for members of the
“I am thrilled that with today’s announcement, High Tide becomes the first of its kind, and the largest, cannabis discount club retailer in
The Company plans to initially roll out this retail concept across Canadian provinces where it currently operates retail cannabis stores, as well as in
High Tide President and Chief Executive Officer,
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About
High Tide is a leading retail-focused cannabis company with bricks and mortar as well as global e-commerce assets. The Company is the largest Canadian retailer of recreational cannabis as measured by revenue, with 101 current locations spanning
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CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain statements in this news release are forward-looking information or forward-looking statements. Such information and statements, referred to herein as “forward-looking statements” are made as of the date of this news release or as of the date of the effective date of information described in this news release, as applicable. Forward-looking statements relate to future events or future performance and reflect current estimates, predictions, expectations or beliefs regarding future events. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (generally, forward-looking statements can be identified by use of words such as “outlook”, “expects”, “intend”, “forecasts”, “anticipates”, “plans”, “projects”, “estimates”, “envisages, “assumes”, “needs”, “strategy”, “goals”, “objectives”, or variations thereof, or stating that certain actions, events or results “may”, “can”, “could”, “would”, “might”, or “will” be taken, occur or be achieved, or the negative of any of these terms or similar expressions, and other similar terminology) are not statements of historical fact and may be forward-looking statements.
Such forward-looking statements are based on assumptions that may prove to be incorrect, including but not limited to the ability of High Tide to execute on its business plan and that High Tide will receive one or multiple licenses from
The forward‐looking statements contained herein are current as of the date of this news release. Except as required by law, High Tide does not have any obligation to advise any person if it becomes aware of any inaccuracy in or omission from any forward-looking statement, nor does it intend, or assume any obligation, to update or revise these forward-looking statements to reflect new events or circumstances. Any and all forward-looking statements included in this news release are expressly qualified by this cautionary statement, and except as otherwise indicated, are made as of the date of this news release.
1 https://www.cannabisbenchmarks.com/report-category/canada/page/2/
2 https://cdn.shopify.com/s/files/1/2636/1928/files/Final-OCS-InsightsReport_Q3-2020.pdf?v=1614968675
3 https://www150.statcan.gc.ca/t1/tbl1/en/cv.action?pid=3610012401
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FAQ
What is the <b>Cabana Club</b> discount club launched by High Tide (HITI)?
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