Box Stores Reloaded

By most accounts, this was a pretty normal spring season. Successful sales weekends were determined mostly by the weather, which was favorable in most of the country April through early June. Independent retailers told us sales were keeping pace with the year before. While the average ticket per customer may have been down, store traffic was up enough to make up for it. Some garden centers found themselves running out of 4-inch annuals, baskets and vegetables and scrambling to restock benches. Early fears of a disastrous spring and people not being able to afford to buy plants did not come to fruition. So maybe our industry is recession proof after all.

The financial crisis made us collectively more aggressive in going after the consumer and driving sales this year, which is a good thing. But I would say the growers serving the box stores and mass merchandisers stood to gain the most. In addition to the retailers spending more than ever before on high quality, high profile television advertising, they have really upgraded their product assortment beyond commodities.

At one large growing operation, I was astonished to see so many high-end combos in black or bronze-colored designer patio pots. All the baskets were in designer shades of brown plastic, cocofiber, moss and pulp. I didn’t see the basic green or white plastic ones anywhere. Fashionable window boxes were brimming with premium annuals. Up until recently, these high-quality items could only be found at independent garden centers. Home Depot’s embrace of the Proven Winners brand has really upgraded the look and feel of the plants offered.

The execution at store level was better than ever before, due to the restructuring of the grower-vendor model, which was pretty significant this year. Walmart took its primary grower-vendor base down to 35. Home Depot has implemented the successful Bell Nursery model nationwide, with one grower being in charge of the full assortment in each store and managing inventory through pay by scan. At Lowe’s, you’ll see one grower providing annuals and one providing perennials at each store. And Bonnie Plant Farm must be making a killing at all three as the dominant vegetable supplier. 

Being the exclusive vendors at the stores has made a big difference for the growers. They aren’t wrestling with competitors for space. They can decide which products they’d like to grow for the assortment and which ones they’d rather buy in. They’ve gone from supplying 10 or 15 stock keeping units (SKUs) to 50 in just a year. One grower told me he hopes it gets to the point where growers are running the garden centers, even the cash registers, to maximize sell-through and service at the stores.

Many of the growers who are the primary vendors have plans to expand their production, but I hope they continue to buy in a significant percentage from other growers. Throughout this restructuring I keep worrying about what happens to the growers who were not chosen as the primary vendors. Many were built up by the box stores for decades. The buyers bought too much product from too many growers, which led to an oversupply industry wide. Industry suppliers built their businesses on this and are now hurting. This correction in supply was necessary, but I fear there will be many casualties. On the upside, business will be much better for those remaining.

Moving forward, I believe the new supply model with the smaller base of grower-vendors is the right one and will address problems that have plagued mass retail for decades. At Short Course, we will be having a Top 100 Growers breakfast discussion on the topic, “Serving The Market Together.” I look forward to learning more about growers doing this and hope there is a bright future for growers selling to growers.    
 

Leave a Reply

Latest Stories
hoffman-new-greenhouse-feature

September 30, 2016

How Hoffman Nursery Invests In Technology In Response T…

The North Carolina-based ornamental and native grasses producer recently invested in greenhouse structures and advanced automation to help increase efficiency.

Read More
cannabis-planted-in-a-greenhouse

September 29, 2016

The 10 Most Common Misconceptions About Greenhouse Cann…

In an emerging market such as cannabis, there can be a lot of bad information out there. One greenhouse supplier points out some common myths.

Read More

September 28, 2016

Pennsylvania Greenhouse Grower Applying For Cannabis Li…

Allen Wagner of Wagner’s Greenhouse in Grandview, PA, hopes to become one of 25 applicants — among as many as 150 — chosen for a grower-processor license.

Read More
finneran bee on snakeroot

September 28, 2016

Which Annuals And Perennials Are Good For Pollinators?

If you are a grower looking for information on producing plants that are safe for pollinators, or which plant types can be marketed as good food sources for bees, the new publication “Protecting and Enhancing Pollinators in Urban Landscapes” provides a good resource.

Read More
The-Capitol

September 28, 2016

How The November Election Might Affect The Legalization…

National polls indicate Americans are largely divided on the topic, while this year’s presidential candidates generally feel it’s a state issue.

Read More
tomato spotted wilt virus angular-necrosis-of-leaves-and-plant-stunting

September 28, 2016

Tips For Managing Tomato Spotted Wilt Virus In Mums

According to a report from Michigan State University, symptoms of tomato spotted wilt virus on chrysanthemum include yellow blotching and rings, necrotic lesions, and stem collapse.

Read More
cannabis-crop-protection

September 27, 2016

Washington State Outlines Pesticide Criteria For Cannab…

The state has also compiled a searchable list of pesticides that fit the criteria for use on marijuana.

Read More
Vogel Alcove NGB Therapeutic Grant Winner

September 27, 2016

National Garden Bureau Announces Horticulture Therapy G…

The NGB’s annual grant program, Growing for Futures, recently selected three therapeutic gardens that will receive grants totaling $5,000.

Read More
phlox-fashionably-early-flamingo-walters-gardens

September 27, 2016

Walters Gardens Partnering With Darwin Colombia On Unro…

Beginning in spring 2017, Darwin Colombia will offer unrooted cuttings of more than 40 varieties of Walters Gardens’ new genetics, including many popular genera such as Agastache, Monarda, Nepeta, and Phlox.

Read More
totalgrow-night-and-day-management-boom-lighting-venntis-feature

September 27, 2016

Check Out The Latest In Lighting Technology For Greenho…

Manufacturers are developing several innovative lighting systems that can help growers save on energy efficiency, while improving plant quality. Here’s a look at some of their newest offerings.

Read More
cuttings-facility

September 27, 2016

How Global Suppliers Of Unrooted Cuttings Are Working T…

The world’s top vegetative producers discuss how they continue to evolve to overcome challenges and embrace opportunities to help growers and the varieties supply chain.

Read More
Streptocarpus Ladyslippers Grape Ice (Green Fuse Botanicals)

September 27, 2016

9 New Blooming Potted Plants To Jazz Up The Home And Ga…

Blooming potted plants are the ideal gift for anyone, from a homesick college student to a spouse in need of some cheering up. Check out nine these new introductions hitting the retail market in 2017.

Read More

September 27, 2016

Kitchen Counter Gardening Leads Garden Media Group̵…

This year's list includes several items around healthy living and eating, from gardening indoors year-round, to "forest bathing."

Read More
bruce-butterfield-and-ngs-image

September 27, 2016

Bruce Butterfield, National Garden Survey Researcher, D…

The man who headed up the National Gardening Survey for the past 35 years, Bruce Butterfield, has died. He was 67 years old. Butterfield’s work with the National Gardening Survey gave the green industry a reliable tool to understand consumer gardening practices and spending. Bruce Butterfield started his career as the Market Research Director at the National Gardening Association in 1978 and continued that same work until his death on September 5 as the Research Director at GardenResearch.com. “These many years of experience doing market research about gardeners and gardening trends gives him a unique understanding of who gardeners are, what they need and want, why they buy the products they do, where they shop, how gardening trends have changed in the past, and where they are headed in the future,” his bio on GardenResearch.com reads.       Butterfield was also behind What Gardeners’ Think and the Environmental Lawn […]

Read More

September 26, 2016

How Even An Overworked Plant Retailer Can Predict Consu…

Years ago, I read an article about Pottery Barn and the women who were making it a success. It was eye-opening to realize that a glossy, national chain like Pottery Barn used to buy products in a similar way garden retailers do. There was one section of that article that really caught my imagination. It was the profile of Celia Tejada, the woman who moved Pottery Barn from buying products from outside vendors to designing their own products. When Tejada joined Pottery Barn, she instructed her entire staff to begin keeping an eye out for things they liked, no matter how minor. So if they were at a restaurant with friends, or walking along a street and something caught their eye, they were to either buy it or photograph it and place it in a room set aside for these kinds of inspiration. When it came time to select themes for the […]

Read More
urban-outfitters-logo-feature

September 26, 2016

Terrain’s Parent Company Breaks Impass For Waterl…

There’s been a development in the stalled plans for a new Terrain garden store from Urban Outfitters on the former Waterloo Gardens location. In a letter to Easton Township, PA, officials, Urban Outfitters’ Chief Development Officer J. David Ziel says the company is removing a key element that had met strong resistance from the community around Devon Yards, its term for the development plan on the former Waterloo Gardens site. Devon Yards will no longer include a four-story apartment building in its “lifestyle center” project, Ziel wrote. But it will still include its third Terrain store, a large format Anthropologie, and several eateries. The planned apartment building had created friction with local residents, Mainline Media News reported back in April. While residents welcomed the retail aspects of the plan, they felt a large apartment building would change the character of the community. The developer who will work on the project, […]

Read More
Orius_June 2015

September 25, 2016

Peace Tree Farm Hosting Biocontrols Event In October

“Advanced Greenhouse Biocontrols for Ornamental and Vegetable Producers” will feature advice from biocontrol authorities Lloyd Traven and Suzanne Wainwright-Evans.

Read More
sbi-software-triumph

September 25, 2016

Greenhouse Software Suppliers Offering A Range Of New S…

Want to know what some of the leading software suppliers are doing to address the ever-evolving needs of their greenhouse customers? Here’s a brief update.

Read More
[gravityform id="35" title="false" description="false"]