Is it evolution or is it a revolution? Whatever your opinion, lifestyle retailing is definitely changing and the garden center scene will be very much part of the changing movement.
A few years ago it was the DIY stores that were looked on as the innovators, but press releases in recent times indicate clearly that the DIY movement is finding it difficult to grow the market and consumers has turned to the DIM movement and the innovators have changed.
The retail changes have already started in the inside room and it will not be long before the outside room follows suit. The lead will come from either inside the industry or from new names who see a new opportunity. Hence, the title to this article. Generation X have been fans of IKEA for a number of years, but new names are now appearing who see an opportunity in the interior room market.
What is now a furniture war could very soon become a plant war!
The new trends are consumer led. A few years ago consumers were keen to go to home improvement stores and build furniture themselves, in a more affluent society that trend has changed and consumers are now looking for fashion ideas they can buy ready made to enhance their homes. The trend is contemporary with a number of retailers now providing their own range of IKEA-esque designs for the consumer, new names are also looking at the trend. ILVA from Denmark are building mega furniture fashion stores around Europe, whilst Zara, the Spanish icon fashion store is moving into furnishings for the home .Their new department names include White, Classical, Ethnic, Colonial, Chic, Kids and Modern. Gone are the days when they used Manchester, kitchenware, bedroom linen and put lamps all in one department. Companies such as MUJI are starting the same trends coming from Japan and other new retail names are starting to have an impact on the traditional furniture retail sector.
As outdoor fashion retailers we need to monitor the indoor retail sector very closely and learn from the trends and fashion statements taking place. To fall asleep in retailing today is dangerous.
The box stores are trying to catch up and are starting to reinvent themselves, but are coming from a product led angle, while the new players in the market are from fashion and are coming to the market place from a different angle.
The new names in lifestyle retailing realize the market revolves around some key retail drivers, these are primarily.
Less is more. Consumers want a simpler look in their homes and in there gardens. They are looking for retailers that understand where they are coming from. Clutter is very much out of fashion.
Consumers expect you as a retailer to lead them down the fashion road. They search out retailers that understand fashion.
They want a retailer who can put the complete picture together for them. They are looking for inspirational indoor and outdoor rooms not rows of product.
They are searching out businesses where the sales team understand and can advise on fashion statements for indoor and outdoor rooms.
Consumers are prepared to travel to find an outlet that meets there desires. Look at the frenzy of shoppers when a new IKEA opens in a new catchment areas.
The consumers is buying a brand look rather than a mix of different looks from different retailers. They want the Habitat look or the Zara look.
These retailers realize that the garden is the next battle field. In fact Habitat stores I have visited in Europe are already offering a strong outdoor living option to the consumers.
They realize that they are dealing with a consumer that is short on time. The latest innovation that I have come across is Linden Homes with their finishing touches brand in the UK. To my knowledge they only have one flagship store to date, but it is unique if you wish to visit the store, you phone them up, make an appointment and then they pick you up in the company limo. Imagine a garden center with that offer!
Is there a message for garden centers?
I believe the answer is yes. Over the years the traditional retailers who have tried to compete at the commodity end of the market have been squeezed out by the box stores. Now there is a new competitor entering the industry of lifestyle retailing who is coming from the fashion market. Where the box store knew supply chain management better than most retailers. The fashion retailers know female shoppers and their buying habits better than anyone else (although I would not argue with anyone who said Zara were one of the best supply chain management retailers in the world).
These new retailers have the consumer walking in their door looking for lifestyle statements and realize outdoor living is a high gross profit zone for them. There main challenge is how do they bring in the plant offer to the retail mix.
In my mind this is an opportunity for the independent garden centre industry and an opportunity that if we don’t grasp, these new players will grasp it instead.
What do we need to do to grasp the opportunity? I have a number of clients around the world who have changed their garden centre experience completely for the consumer, gone are the rows of plants and in their place are garden room settings based on local trends. Imagine the plant area that is laid out like Zara with themes such as Classical, Colonial Modern or White. While this is a huge jump for some retailers to grasp, others are seeing the benefits and changing to a living rooms concept.
The consumer now looks on integrated merchandising as the norm, when she goes to the fashion shop she expects to see the LOOK. In other words the dress, handbag and often jewelry are displayed together, when she goes to the indoor living store she expects to see the tableware, napkins, table and chairs all together. When she visits the lifestyle garden centre she expects the same offer, she expects the containers to be associated with the right plants and given ideas to match her thinking process. She expects plants to be displayed based on color themes rather than in standard rows and products separated by “walls” she does not understand. She is in the ideas and solutions market and therefore product categories in the garden centre need to meet her needs. The modern retailer understands this while the more traditional retailer looks on the problems of material handling, watering and other internal issues which have become barriers in their minds. The same, I’m sure was the same when the indoor lifestyle retailer started their business models of change. Those that resisted became the dinosaurs of their industry.
What about the Plant Buyers!
The challenge of our industry is that to survive, like other industries, we have to change to attract new customers with a new offer, whilst at the same time keeping our existing customers, who are often more traditional in their approach. This is an issue I have discussed with many of our clients who go through the change process. Plant Hunters love to go exploring along rows of plants to discover the hidden gem and we should encourage them to do this as it provides a unique experience in the garden centre. These types of consumers are our library shoppers and we should provide a section of the garden center that looks like a traditional library. Create a zone where they can browse through rows of plants where they are displayed in Latin order. But at the same time provide stories on the plants. The story in my mind is a critical element as you still need to be conscious of the sales per square meter you need to achieve, this is still a retail area and retail laws still apply to this section
The one category the new players in lifestyle retailing are unsure about is the plant category. I’m sure they would love to integrate plants, but they do not have the knowledge, know the stories, or have the technical experience to put the patio and garden category together. This is there achilles heel and the existing independent retailer’s strength, but we just need to repackage the offer.
As I write this article I’m working with a group of garden center who are in the process of change. Some have started the journey while others have not yet started the journey. For confidentiality reasons I will not release the names or country where this development is taking place. But we are closely monitoring sales per square metre to ensure that the formulae work for them. In the indoor areas the companies who have changed the model into room settings have seen a six fold increase in sales, when it comes to the outdoor sales area the increase has been five fold increases in sales per squares metre. These figures are in keeping with other retailers we have worked for and highlight the opportunities that exist in the market place.
Where do you start?
I had a recent enquiry from a garden centre owner who asked this very question and he asked which garden centre he should look at in his area who had made the right changes in my view. My response was that he should not look at retailers within the sector, but to look at retailers outside the sector who were chasing the same share of wallet. I suggested his local IKEA and other stores to look at .He came back to me enthused to make the changes, but his concerns were very valid and one I always discuss with our clients.
These are:
Have you got the right team with the right vision to make the changes?
Are you prepared to integrate your categories differently to other retailers in the industry?
Does you team know what they need to do to be the best in the consumers mind when it comes to the retail experience in your garden centre?
To take a message from the 1960’s music group the Kinks are you prepared to “be a follower of fashion” ?
This is an exciting time to be in the garden retail industry, a time of change and innovation.
Perhaps the best way to finish this article is to quote Steve Job, the CEO of Apple Computers. When he was asked about innovation his response was:
“Innovation….. It’s not about money, it’s about the people you have, how you’re led and how much you get it”
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John Stanley is a conference speaker and retail consultant with over 25 years experience in 15 countries. John works with retailers around the world assisting them with their merchandising, staff and management training, customer flow, customer service and image. www.johnstanley.cc
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