Garden Retail 2013: Chicago

The weather in Chicago was perfect and the shoppers were out in huge numbers filling almost every garden center we visited on May 18 to 19, 2013. Home Depot was the most crowded, with a busy parking lot. In looking closely at a number of shopping carts, customers were buying a wide variety of items, including large patio containers and hanging baskets.

In this market, there has been seemingly no impact on the sale of Impatiens walleriana. We observed large inventories in all retail locations.

The main objective of this retail tour was to see the initial launch of the Miracle Gro Syngenta branded annuals. They were on the shelves in every Home Depot, with larger displays in the suburbs than the city stores.

Here is what we saw:

• Two SKUs: a 5-inch annual retailing for $6.98 and a 12-inch fiber hanging basket with Calliope geraniums retailing for $19.98.

• The 5-inch was offered in a Miracle Gro branded pot with a large stick-in label.

• In the 5-inch SKU, there was a mix of basic (seed) annuals and premium (vegetative) annuals with no difference in the retail price point.

• Each pot and label had a clear message: “Premium Plants.”

• All 5-inch items were offered generically (Impatiens Red etc.)

• The 12-inch hanging basket was identified by variety and had a large Miracle Gro label (‘Calliope Dark Red’).

• There were small POS signs on some displays.

• There was a consumer guarantee printed on each pot with an unconditional money back offer.

• Positioning: “Guaranteed gardening success”

Home Depot

Considering all the markets we have visited over the past six years, nowhere have we observed a better-performing retailer than Home Depot in this market, with an offering of annuals that is second to none. The elements that differentiate this retailer from others starts with high-performing vendors that provide a wide assortment of high-quality products.

Just as important, Home Depot has one of the most positive connected merchandising groups you will find anywhere. Here is what we feel makes them so dominant in this market:

• Above average product quality with a lot of wow

• Product assortments that offer more choices than their competitors

• Best assortment of patio containers we have seen anywhere

• Great assortment of premium hanging baskets

• Highly energized interactive merchandising group

• Merchandisers who make it obvious they want to help their customers

When looking around a garden center, one of the elements that is important to notice is price signs and/or pricing labels. Without a doubt, the pricing in these stores is in place more than 99 percent of the time, as well as being accurate. Many handmade price signs are impossible to miss.

Another element of good retailing is making use of the end caps with products that stand out. Clearly, these end caps were some of the best in the country. Outdoor corrals are widely used in this market in May and these vendors have very well-organized corrals that make outdoor shopping a pleasant experience.

Lowe’s

In the annuals category, the Garden Club Select brand was the most dominant branded product line. Every store offered small displays of Proven Winners and Wave. Larger packs were very evident, appearing to be positioned to minimize the impact of the OPP 606 SKU. There were displays of 209 packs retailing for $6.98 and 1201s at $9.98.

A lot of the table space in the covered greenhouse area was devoted more to shrubs this year than in the past, especially the Monrovia brand. It seems there is less emphasis on annuals and an increased emphasis on perennials and shrubs.

Walmart

This year, there is far less Better Homes & Gardens product on the shelves than we observed last year. We saw no Better Homes & Gardens point-of-purchase materials this year, whereas last year it was in every store. Walmart, as always, had more emphasis on their OPP SKUs, but each store did have nice displays of Wave petunias in the signature pink packaging.

Costco

Costco was one of the best markets, offering a really nice assortment of premium items, mostly supplied by Leider & Sons.

• 16-inch patio pot. A great value at $29.99

• 12-inch combo hanging baskets looked fantastic

• 12-inch patio geraniums for $17.99

• 12-inch caged patio veggies for $12.59

• Three 1-gallon perennials for $15.99

Sam’s Club

• Mini Rose Vintage Tin for $15.97

• 12-inch hanging basket for $12.99

• 10-inch hanging basket fern for $10.98

• 12-inch patio pot combo for $16.88

Retail Prices Chicago Market

 

Item	Size	Home Depot	Lowe’s	Walmart
Annuals Basic	508	2.98
	606		1.48	1.78
	306	7.98		5.68
	209		6.98
	1201		9.98
	2401	14.98
	4 inch	0.88		1.28
Seed Geranium	4 inch	1.48		1.28
	6 inch	2.98	2.48
	8 inch	5.98
Annual Premium
Wave	306	7.88	6.98	5.88
Wave	6 inch	4.98	4.98	4.98
Viva	1 gallon
Viva
Proven Winners	4.5 inch	4.98	4.98
Garden Club Select	1 pint		2.98
Better Homes & Gardens	Quart			3.68
Better Homes & Gardens	8 inch			5.68
Confetti	8 inch			5.68
Garden Club Select	Quart		3.98
Garden Club Select	1 gallon		5.98
Miracle Gro	5 inch	6.98
Sunpatiens	Quart	4.98
Viva	Quart	4.98
Viva	1 gallon	7.98
Vigor	Quart	3.98
	1 gallon	6.98
Hanging Baskets
Basic	10 inch	9.98	7.98	7.98
Fuchsia	10 inch		19.98
Premium	10 inch			10.97
Premium	11 inch	14.98	14.98
Proven Winners	12 inch	29.98	16.98
	12 inch	19.98
Miracle Gro	12 inch	19.98
Better Homes & Gardens	12 inch			15.98
	14 inch	39.98
Proven Winners 16 inches	14 inch	39.99	34.98
	20 inch	99.99
Patio Pots
New Guinea Impatiens	6.5 inch	6.98
Color Bowls Better Homes & Gardens	8 inch	9.98
	10 inch	14.98	12.98
	12 inch	14.98	29.98
	12 inch			15.98
	12 inch			15.98
	13 inch	19.98
Proven Winners Calle	14 inch	24.98
	14 inch		24.98
	5.5 gallon		44.98
	16 inch		29.98
Two Tier	14 inch	79.98
	20 inch	59.98
	24 inch tall	129.98
Urn	14 inch	79.98
Perennials	Quart	3.98	3.98	3.78
	1 gallon	6.98	5.98	5.77
Vigoro	1 gallon	8.98
Garden Club Select perennials	1 gallon		7.98
Garden Club Select perennials	8 inches		10.98

 

Summary

Chicago has to be one of the top markets in the country for Home Depot with more home centers than any competitor and high-performing vendors. You have to assume this is a great growth market. The Miracle Gro brand launch seemingly went well and it was a great choice to launch in the Chicago market where Home Depot has great vendors and store density.

Retailer	Store #	City	Annual	Perennials	Vegetables
Home Depot	1908	Bedford Park	Grand Flowers	Hampshire	Bonnie
Home Depot	1955	Oak Lawn	Grand Flowers	Hampshire	Bonnie
Home Depot	1986	Chicago	Grand Flowers	Hampshire	Bonnie
Home Depot	1950	Chicago	Grand Flowers	Hampshire	Bonnie
Home Depot	1961	Chicago	Grand Flowers	Hampshire	Bonnie
Home Depot	1903	Chicago	Grand Flowers	Hampshire	Bonnie
Home Depot	1911	Cicero	Grand Flowers	Hampshire	Bonnie
Home Depot	1982	Oakbrook Terrace	Grand Flowers	Hampshire	Bonnie
Home Depot	1916	Downers Grove	Masterpiece	Hampshire	Bonnie
Home Depot	1957	Aurora	Masterpiece	Hampshire	Bonnie
Home Depot	1921	Batavia	Masterpiece	Hampshire	Bonnie
Home Depot	1905	Darien	Masterpiece	Hampshire	Bonnie
Home Depot	1918	Naperville	Masterpiece	Hampshire	Bonnie
Home Depot	1943	Carol Stream	Masterpiece	Hampshire	Bonnie
Lowe’s	2304	Chicago	Mid American	BFN	Bonnie
Lowe’s	2310	Chicago	Mid American	BFN	Bonnie
Lowe’s	1845	Chicago	Mid American	BFN	Bonnie
Lowe’s	1711	Naperville	Mid American	BFN	Bonnie
Lowe’s	1738	St. Charles	Mid American	BFN	Bonnie
Lowe’s	1821	Carol Stream	Mid American	BFN	Bonnie
Walmart	02215	Darien	Mid American	Sawyer	Bonnie
Walmart	2204	Forest Park	Mid American	Sawyer	Bonnie
Walmart	1848	Glen Ellyn	Mid American	Sawyer	Bonnie
Walmart	4405	Aurora	Mid American	Sawyer	Bonnie
Walmart	1898	St. Charles	Mid American	Sawyer	Bonnie
Costco		Naperville	Leider	Hampshire	Leider
Costco		St. Charles	Leider	Hampshire	Leider
Sam’s Club		Batavia	GCG	GCG	GCG