Federal legislation legalizing cannabis (and the bank services that support the industry) is wending its way through the U.S. Congress. In the meantime, a growing experiential business is emerging at retail.

The groundwork for cannabis-focused experiences at retail is being laid despite the fact that the proposed Safe Banking Act, which enables financial institutions to provide services to licensed cannabis businesses, failed in the U.S. Senate after passing the U.S. House of Representatives multiple times since 2019.

In the patchwork of U.S. states where recreational cannabis is legal—21 to date—retailers are approaching the category with a number of strategies, from small storefronts to sprawling locations replete with immersive experiences.

“Cannabis brands of all sizes, from multistate operators to mom-and-pop shops, have stepped up to the challenge of rising consumer expectations,” said Kathee Brewer, editorial director at Inc Media, which publishes the marijuana-related trade publication MG Magazine. “Whether online or in-person, contemporary dispensaries are pushing the boundaries of the retail experience, opening new avenues for consumer exploration and washing away the negative connotations of the past. With experiential activities and futuristic design, the cannabis retail environment is forging ahead into a new era.”

For example, the 30,000-square-foot House of Cannabis in New York’s trendy SoHo neighborhood doesn’t actually sell marijuana, but it does have 10 immersive experiences celebrating the product. The ground floor contains snacks, a café, and cannabis-inspired lifestyle and design products. The upper three floors feature a multimedia experience tracing cannabis’ 6,000-year history, chambers for growing plants, and the multi-sensory “Higher Self” experience, which simulates the sensation of being high through audio and video effects.

In Las Vegas, Planet 13 Entertainment Complex is a 112,000-square-foot store that, in December, received Nevada Cannabis Compliance Board approval to create a consumption lounge where marijuana can be made, purchased, and consumed under one roof. Planet 13 also has dispensaries in California and Florida and is opening another in Waukegan, IL.

In Canada, Couche-Tard, which operates the Circle K convenience stores, signed a licensing agreement for the Fire & Flower brand to open locations in Ontario. Five Fire & Flower locations are already operating next to Circle K stores, and the cannabis retailer has 92 locations.

And in Norwalk, CT a 100-year-old 265,000-square-foot former hat factory is being renovated as a home for cannabis-related businesses featuring an 88,000-square-foot outdoor cultivation space on the roof.

Part of the success of these retail experiences will be entrusted to budtenders who make product recommendations and seek to be a “trusted resource” for customers, said Irwin Simon, CEO of Tilray. In the past year, Tilray has doubled the number of stores in Canada carrying its Good Supply and Wowie Chowie brands (now available in 1,200 locations).

“As consumers continue to shift away from price-based cannabis purchases, effective marketing regarding quality and safety of products and brand familiarity will matter more and will be positioned to reap the benefits and rewards,” Simon said.