John Stanley Associates

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Rethink Retail

One word can grow your sales
One of the objectives of any retailer is to convert more consumers into customers.  Even when times are more difficult, consumers will still go “window shopping”.  They may set out without any ideas on what or if they plan to purchase anything, but the chances are that they will not go home without purchasing something.

Not everyone is extrovert enough to go window shopping, find something that appeals to them and purchase it straight away; some require a nudge to encourage them to make the final step.  That’s where the salesperson comes in.

Rethink Retail

One word can grow your sales
One of the objectives of any retailer is to convert more consumers into customers.  Even when times are more difficult, consumers will still go “window shopping”.  They may set out without any ideas on what or if they plan to purchase anything, but the chances are that they will not go home without purchasing something.

Not everyone is extrovert enough to go window shopping, find something that appeals to them and purchase it straight away; some require a nudge to encourage them to make the final step.  That’s where the salesperson comes in.

A Breath of Fresh Air……Terrain at Styer’s

What can a fashion retailer from the clothing retail sector do in the gardening industry?  I have been asked that question a number of times since Urban Outfitters announced it was coming into the stand alone garden centre industry.

In August I finally got the opportunity to get to Philadelphia and check out their first venture into the horticultural retail sector.

Someone had to move the goalposts, and Terrain at Styers’ has definitely done that.  Before the company purchased the business, Styer’s was a traditional American garden centre which was looking the same way as many 1980’s traditional centres around the world.  Terrain have not spent a lot of capital on the infrastructure, which did not surprise me, as they had not gone down this route in their clothing stores.  What they have done is put modern lifestyle retail principles in the store and ….WOW…it is a breath of fresh air in horticultural retailing.

What can a fashion retailer from the clothing retail sector do in the gardening industry?  I have been asked that question a number of times since Urban Outfitters announced it was coming into the stand alone garden centre industry.

In August I finally got the opportunity to get to Philadelphia and check out their first venture into the horticultural retail sector.

Someone had to move the goalposts, and Terrain at Styers’ has definitely done that.  Before the company purchased the business, Styer’s was a traditional American garden centre which was looking the same way as many 1980’s traditional centres around the world.  Terrain have not spent a lot of capital on the infrastructure, which did not surprise me, as they had not gone down this route in their clothing stores.  What they have done is put modern lifestyle retail principles in the store and ….WOW…it is a breath of fresh air in horticultural retailing.

Supply Chain Marketing – The Real Challenge to Success

Over the last few months I have been presenting at conferences where growers and retailers have been present.  The conversation has often led to supply chain management and marketing; marketing being the major concern.

Retailers often challenging the growers for their lack of marketing initiatives and growers challenging retailers for not having a marketing strategy.

Before looking at the challenges and opportunities available within our industry, it is worth taking a step back and looking at what other industries are doing.

For me, one industry that is closely related to ours, which I admire, is the paint industry.  Compared to our industry the product they hand to the customer is fairly boring, most of it is presented in a round tin with a wrapper around it.  But, as manufacturers they are fully aware that they need to understand their consumer’s exceptionally well.  They work with colour fashion consultants to plan colour trends and work on marketing strategies to promote the emotional benefits of their product.

Having developed their marketing strategies they then develop retail strategies both in the way they product should be merchandised and displayed which they then offer the retailer in a partnership relationship.

Over the last few months I have been presenting at conferences where growers and retailers have been present.  The conversation has often led to supply chain management and marketing; marketing being the major concern.

Retailers often challenging the growers for their lack of marketing initiatives and growers challenging retailers for not having a marketing strategy.

Before looking at the challenges and opportunities available within our industry, it is worth taking a step back and looking at what other industries are doing.

For me, one industry that is closely related to ours, which I admire, is the paint industry.  Compared to our industry the product they hand to the customer is fairly boring, most of it is presented in a round tin with a wrapper around it.  But, as manufacturers they are fully aware that they need to understand their consumer’s exceptionally well.  They work with colour fashion consultants to plan colour trends and work on marketing strategies to promote the emotional benefits of their product.

Having developed their marketing strategies they then develop retail strategies both in the way they product should be merchandised and displayed which they then offer the retailer in a partnership relationship.

Garden Globalisation

Globalisation has been with us for a number of years.  Take a walk around any shopping mall in the world and you can obtain food from franchisees from the U.S.A., South Africa, Australia or the U.K.  Then look at the fashion stores and the chances are their origins are Italy, France or the U.K.

Wherever you live in the world, as soon as you start checking where products are made, the chances are China is a name that will keep recurring.

Love it or hate it, we have a globalised trading world with global retailers being a normal part of the retail mix.

The gardening industry has been unique in the sense there may be global supplies in some categories, but they are not common and no garden retailer has until now gone global.

One of the reasons companies have had challenges going global is horticultural retailing and marketing is because the global consumers perception of their garden differs and therefore marketing and retailing techniques have to change to meet those consumer needs and wants.

Globalisation has been with us for a number of years.  Take a walk around any shopping mall in the world and you can obtain food from franchisees from the U.S.A., South Africa, Australia or the U.K.  Then look at the fashion stores and the chances are their origins are Italy, France or the U.K.

Wherever you live in the world, as soon as you start checking where products are made, the chances are China is a name that will keep recurring.

Love it or hate it, we have a globalised trading world with global retailers being a normal part of the retail mix.

The gardening industry has been unique in the sense there may be global supplies in some categories, but they are not common and no garden retailer has until now gone global.

One of the reasons companies have had challenges going global is horticultural retailing and marketing is because the global consumers perception of their garden differs and therefore marketing and retailing techniques have to change to meet those consumer needs and wants.

Garden Centre? Why not a Fruit and Vegetable Centre?

By John Stanley

When a consumer entered a garden centre in the 70’s or 80’s they were instantly exposed to an array of flowering shrubs and bedding plants.  It was the era of garden beautification.

It is now 2008 and it is time to re-look at what the garden centre should look like.  If we observe the consumer we find that in the U.K. they are spending time on their allotment and fruit and vegetables are the in products to grow in the garden.  Is this a fad or a trend?

If it’s a fad the retailer should allocate the space to the fad and be prepared to shrink down the space as appropriate.  If it is a trend, the whole look of the garden centre needs to be analysed.

Personally, I believe grow your own food is a trend, not a fad.  We have seen the Farmers Market industry grow dramatically over recent years, the consumer is wanting to reduce food miles and know the origin of their food.  What could be better than having home grown produce?

Prices Up, Prices Down… What should you do?

By John Stanley

Over the last few months I have been advocating to garden centre retailers that we need to raise the prices of plant material sold; in my opinion we are undervaluing plants and as a result under-investing in wholesale nurseries.

But, economics around the world are faltering.  In the U.K. Daily Mail Cost of Living Index released in mid April 2008 shows food costs rising by 15.5% a year.  In Australia, Monash University released the Lipstick indicator showing a basic luxury such as lipstick had increased in sales by 25% over the last twelve months while expensive luxury goods have declined in sales.

Plants are considered by the consumer as luxury goods, what do we do in a changing economic world, put prices up or bring them down?

In a market where inflation is eating into the consumer’s pocket, I’m convinced the same thing will happen this time around as in previous difficult times.

Commodity retailers will thrive and grow profits; this has already been illustrated with the quarterly financial results for Tesco, the supermarket chain, showing strong growth.

Luxury stores will also thrive, it tends to be the retailers in the middle who lose out and find sales shrink.

Are you a Persistent Winner?

Over the years garden centres win National Awards, these are often once in a lifetime accolades.

It was announced in March 2008 that Zanthorrea Nursery in the Perth Hills, Western Australia had been awarded the Garden Centre of the Year for a medium size garden centre.  These awards started in 1994 and over the years the business has won this award five times.

During that period the business has seen many changes in staff turnover and the owners Jackie and Alec are also handing the reins over to their son, ……., but even with all these changes the business still carries on winning awards, how do they do it?

Before we look at how they do it, it’s worth mentioning that Zanthorrea is the most unlikely winner of a garden centre competition.  By modern retailing standards they should not be entering, never mind winning.  They do not have a coffee shop and they only have a limited variety of plants.  They are a native/indigenous plant retailer.  The range within what they stock is wide and deep, but narrow by most garden centre standards.  Plants are also displayed on the ground; the capital investment is low compared to many garden centres.

Train the Team
Jackie and Alec have always been advocates of training.  All team members are trained in product knowledge, in fact the staff room is scattered with well thumbed books on gardening and local plants.

When new products arrive, all team members are involved in learning about the new product.  I have been involved in numerous team training sessions on customer service, all team members excel at these skills, and this is truly a business where people do make a difference.

Delegation
Team members feel they own the garden centre, they feel empowered to introduce and implement new ideas.  Ideas come from the ground up, not from the top down.

The visual result of this is that every time the consumer walks in the door, the place looks different.  Displays are changed on a weekly basis via a rotation system.

Not all new displays will work, that doesn’t matter, this team is prepared to try and are encouraged to try, if they don’t work, it has been a learning experience for all concerned.

Be Topical
The team at Zanthorrea keep up with fashion and trends.  Fashion statements are short term trends that relate to colour and events.  For example, one year when the Oscars were being presented, Zanthorrea presented their Oscar plants.

Trends are long term events, with a life of at least four to five years.  One of those trends is the environmental movement taking place.  Consumers are wanting to be more organic when it comes to gardening and want to plant local plants.

Zanthorrea was the first garden centre in West Australia to join the Sustainable Garden Association as an accredited garden centre.  This association is encouraging consumers and retailers to be more aware and caring of the environment.

Zanthorrea promote their philosophy on this issue based on product stocked and displays created.  They therefore show the consumer they are in tune with trends.

Market Innovation
Zanthorrea are also market innovators.  They are constantly coming up with fresh ideas to promote the business.  “The Bush Telegraph” is their main marketing tool and this often presents the customer with novel ideas.

Jackie and the team also give talks to both professional and amateur groups in the State.  Jackie is a member of the Horticultural Media Association and provides complimentary talks at the State Garden Show.

You Have to Visit Other Garden Centres
I always remember talking to Pete Luckett, the Canadian award winning green grocer.  He commented that he had to excel as all his customers had to go to other food outlets to complete their shopping experience.

The same could be true of Zanthorrea, as a dedicated gardener you have to go to other garden centres to complete your garden shopping.  This means Zanthorrea has to excel as their customers are constantly comparing them with other garden centres.

The Global Nursery Report

By John Stanley

This is definitely a defining moment for independent garden centres.  Companies such as Tesco’s, IKEA and Urban Outfitters have gone past the stage of eyeing up the opportunities in the industry; they have become pro-active and have started developing sites.  2008 is going to be one of the most interesting years for the industry in a number of years.

There are three issues dominating the industry at present:

• The new “big end” of town players plan to create lifestyle rather than commodity retail sites.  I think we will see them broaden the range of products sold in centres.  They know they have to get the plant centre right, but they also have the skills to bring in interior living, fresh produce and clothing.  It will be interesting to see how they progress.
• Sustainability, the above companies are coming into our industry as they see it has good credentials to make them look green.
• Every country I work in, sustainability issues are the big subject.  How can nurseries and garden centres be more environmentally friendly?  The American industry, like the population were slow to catch on, but they are picking up speed rapidly.
• Ball Publishing are now producing a free newsletter via Grower Talks on sustainability as it affects our industry.  I would advise every reader to subscribe http://www.ballpublishing.com/BPsubscriptions/newslettersignup.aspx?newsletter=acresonline
• One subject hotly being debated is the plant container, will the existing container be acceptable in the future; many are saying no and research is being carried out on straw and cow dung pots.  Green roofs have also become a major interest in the media with some wholesalers becoming growers of roofs.
• The other big issue is what do we do to get 35 year old women into garden centres?  I’m working with Jeff Morey of Nursery Retailer, U.S.A., on this issue at present and will have some results later this year. I still like the concept coming out of the U.K. where one garden centre sends out birthday cards with £35 vouchers in to local women he knows have a 35 year old birthday coming up.

These are interesting times in the industry, it must be scary for those who dislike change, but fun for those who do.

GREEN ROOFS....... NOVELTY OR TREND ?

Advocates of Lord of the Rings will remember Middle Earth and the homes of the Hobbits, it looked quaint and a reminder of the past, but was this a picture of the future? For non Hobbit fans, the Hobbits lived in homes that were partly under ground and had Living Roofs.

The latest movement to a sustainable future is bringing forward a host of new ideas and one of these is that in the future we should have green roofs.

Green roofs are not a new trend, it’s been done for hundreds of year.  Australia’s Parliament is famous for its green roof and other buildings are following this trend. The problem with our government building is that it is a large lawn that has to be mown to maintain the image, something that would today be looked on as “non green”.

Many would argue the best green roof is in Japan, The Fukuoka Building, designed by Emilko Ambasz and Associates is a building that contains offices, shops, a 2000 seat theatre and a museum. Other buildings of note are The Charles Stuart University, Albany and P.P.I. Marine and Freshwater Resource Institute, Queenscliff, both in Australia, The Art and Exhibition Hall in Bonn, Germany, The Getty Center in Los Angeles and The School of Art and design in Singapore.

Today’s green roof movement aims to reduce the amount of carbon in the environment and to preserve habitats in the area. Is this the way forward or is it a fad. If it is a trend is this a marketing opportunity for the garden industry?

Before we analyse the market opportunities, lets look at the purpose of a green roof.

According to the Green Roof Association, www.greenroofs.com not everyone is looking on green roofs in the same way. A green roof has a number of different uses in the community.

Some roof owners are converting their roofs in to Boutique gardens .A true garden in the horticultural sense of a garden, mixed plants collections ,this is the same as a garden at ground level and a garden that the owner can enjoy in the true sense of a gardening.

Other roof owners are looking at their roofs as sports facilities either for themselves or for their workforce in a business location.

Holiday resorts are promoting green roofs as part of their marketing strategy in developing eco resorts. A major trend in the vacation industry.

Many home residents are now looking to their roof as a source for food. One International Hotel chain is also developing the same plan, promoting the fact that the fruit and vegetables you are eating in the restaurants were grown above your head. One of the big concerns in the carbon mileage that Food travels and this must be the ultimate zero mileage produce.

Green roofs are also being used to cool buildings and save energy bills, the aims can be a combination of all of the above or just one specific aim.

In general, the approach to green roof technology varies around the world. In Europe, the trend is to spray seed on the roof or plant the complete roof. In Asia, and especially Japan, The approach has been to develop pot systems that can be used for living walls and roofs, whilst in the U.S.A. the trend has been towards large planted trays that are carried to the site and then placed together like lego bricks.

Marketing Green Roofs

Initially the green roof technology has been developed for large or government buildings and domestic roofs are less common. Buildings such as the Seattle City Hall has a green roof, but as a visitor to the city I found they did not promote the fact, which I thought was a pity. But, as the green roof becomes more mainstream there are companies who are now specialised in roofs. I have discovered a few companies on the internet, The Living Roof System, G-Sky Vine Walls and Green Grid Modules are just a few, but I am sure other business exist who are growing this category.

If the future is to be a modular system for green roofs than must be an opportunity for growers and possibly retailers in the future.

Growers have an opportunity to become the expects in green roof technology. This means developing growing media that is lite and a well drained media that is suitable for the containers. Weight and drainage are a big issue in this type of technology. Plant species selected is also critical, a garden will need low maintenance plant material that is hardy in the most extreme local conditions .

Andrej Suske and his team at T & L Nursery Inc in Redmond Washington State, USA has already identified the opportunity and has started a division of his nursery to develop this market niche.

He has a unique container system and is providing finished roof gardens for a client in the Seattle area

Will retailers have a marketing opportunity to develop a roof garden category, not yet, but who knows if this is a potential possibility. It is a trend I would certainly keep an eye on and I would want to be the leader in the market place if it does become a domestic product opportunity.

John Stanley is an internationally recognised conference speaker and retail consultant with over 25 years experience in 18 countries. He has authored several successful marketing and retail books including the best seller Just About Everything a Retail Manager Needs to Know. John’s retail experience covers hands-on retailing in supermarkets, hardware stores, garden centres, farmers markets and drug stores.  For more information John Stanley and his services visit his website www.johnstanley.cc

A Positive Future for Smaller Gardens

By John Stanley

Tim Briercliffe, the Horticultural Trades Association Business Development Director summarises some of the most recent industry research and shows that there is a promising future for independent garden centres.

If the British are a nation of gardeners, then according to research many aspiring gardeners will in the future be conducting their hobby in smaller gardens.  Data from the HTA’s Garden Industry Monitor  indicates that there is a continued trend in the overall reduction in the average garden size.  This seems to be driven by a higher density of new house build, resulting in smaller gardens, and many large houses are being converted into more than one household, each with its own separate garden.

However, whilst gardens may be getting smaller, the number of people with access to a garden is increasing.  The English National Survey of Housing undertaken by the Office of the Deputy Prime Minister, found that 85% - or around 17.5million – households had a garden.  Of course, recent media reports regarding the number of new houses required in the UK suggest this figure will continue to grow for the foreseeable future.  Good news for the gardening industry – more gardens should translate to more customers!

The HTA’s Garden Industry Monitor provides further evidence to suggest that the gardening industry can continue to expand.  Take for example the simple fact that 65% of those over 25 with somewhere to grow plants visited a garden centre in 2006 compared to 57% in 2002.

33% of Garden Visitors ‘Dislike Gardening’

Who exactly is visiting garden centres then?  Well, the answer will come as no surprise!  Women are more likely to visit garden centres, but men still represent 45% of visitors.  Of the total number of visitors to garden centres, the over 45’s are most likely to visit.  Obviously those with an interest in gardening are more likely to visit than those without, although those who fall into the category “dislike gardening” still represent 33% of visitors!  The message to garden centres then is that they need to take into account the interests and needs of all types of visitors if sales are to be maximised.  A good mix of non-gardening products, concessions and facilities is the obvious solution.

Those of us in the gardening industry can of course testify to the superb breath of knowledge available to the customer at a typical garden centre.  The good news is that the customer also believes garden centres offer a wealth of expertise.  Take, for example, the fact that garden centres remain the outlet of choice for horticultural stock accounting for over 48% of total UK sales.  In other words, more horticultural stock is purchased at garden centres than through any other sales channel such as multiple retailers and mail order. It is not only horticulture that is driving sales in garden centres.  Customers are visiting for other reasons, with one in eight, for example saying that they visit a garden centre just to use the café or restaurant.  A great opportunity for garden centres to enhance their restaurant offer!

Given that the gardening industry should continue to increase in size (the underlying factors remain positive – an increasing in house building, stable economy, increasing interest in lifestyle and leisure), how should garden centres equip themselves in order to capitalise on the opportunities in the market place?  Attitudes of customers as evidenced in the Garden Industry Monitor all point to the fact that, not surprisingly, there will be a need for high levels of customer service.  Staff knowledge and helpfulness will of course be critical factors in the delivery of personal service, along with supporting means such as point of sale information, leaflets, web site and other material.  The customer will also want a wide choice of products and services available at their local garden centre, so the authority of the product offer is vitally important and it needs to be supported by first class service.

Garden centres remain popular as a retail destination for the British public.  In fact, they are the most popular choice of destination for gardeners when looking for inspiration and ideas.

Is there a good future for UK garden centres?  Yes.  But those businesses that have the best understanding of their customers, connect with them, and continually enhance their offer will tend to be more successful.

John Stanley is an internationally recognised conference speaker and retail consultant with over 25 years experience in 18 countries. He has authored several successful marketing and retail books including the best seller Just About Everything a Retail Manager Needs to Know. John’s retail experience covers hands-on retailing in supermarkets, hardware stores, garden centres, farmers markets and drug stores.  For more information John Stanley and his services visit his website www.johnstanley.cc