The interdependence of independents

Karen Varga

“I love the optimism of our industry; I think it’s still there. People [should] stay focused and work together as fellow garden center retailers. That can go a long way as we band together in the nation. We’re going to be a lot stronger through the ‘interdependence of independents,’” Frank Benzing, president of SummerWinds Nursery, told us recently.

This year, we’ve focused our annual State of the Industry issue on topics that are crucial to its health. We delve into this year’s presidential election on page 16, the results of which could have a significant impact on all small businesses nationwide, no matter which candidate wins. Through our annual State of the Industry survey, we found that garden centers aren’t out of the woods quite yet, but are making headway, especially when compared to previous years. Spring sprung earlier than usual in 2012, offering IGCs the chance to get a jump on the season. Seventy eight percent of garden center owners reported an overall sales volume that was at least as high or higher than 2011. Weather was by far the biggest factor in determining the success of this season, with over 60 percent of respondents citing it as the most influential factor.

Green goods sales were comparable to 2011, with annuals and edibles seeing the biggest increase in sales this year, possibly due in part to the grow your own movement, which was reported as the hottest trend of the year. Trees and shrubs saw the biggest decline this year, with nearly half of garden center owners reporting that it was the weakest green goods area. The stagnant housing market has taken a toll on the garden center industry, with fewer people purchasing homes, or changing the landscaping on homes if they are already homeowners. Check out the complete State of the Industry Report starting on page 45.

We also look at how garden centers have adapted to changing market conditions. We spoke with a garden center owner in California who successfully changed his business focus and began to specialize in hydroponics supplies to take advantage of an emerging trend (page 78), and bring you more information about mobile payment apps on page 56, after finding out that many of you are considering using one in the next year to keep up with technology. Don’t miss garden center consultant Ian Baldwin’s latest article on realigning your business’s finances for maximum results on page 40. The typical garden center customer is also changing - learn more about how demographics are changing, and how to keep younger customers coming back to your store, on pages 88 and 96, respectively.

As I’ve gotten to know more of you this year, I’ve seen that this industry is, indeed, optimistic and willing to band together for the greater good. I encourage each and every one of you to get to the polls and vote this Nov. 6 - IGCs across the nation depend on it.
 




kvarga@gie.net

October 2012
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