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State Of The Garden Center Industry: Spring 2010
Despite a hodgepodge of adverse weather conditions this spring, results from our 2010 State of the Industry spring recap survey showed positive signs in foot traffic and sales growth.
Next year will be different. That was the sentiment shared by retailers across the country last summer.
Everyone is well aware 2009 was one of the toughest economic years on record. News reports from almost every outlet looked to 2010 to pick us up and dust us off.
Did it? Results from our 2010 State of the Industry spring recap survey show some positive signs with a majority of the retailers surveyed seeing increases this year in foot traffic and sales.
But let’s not forget about the uncooperative weather. Nearly 65 percent of the retailers surveyed said it was their biggest challenge of the past spring – yet again, keeping garden center profits from reaching their fullest potential.
Rain, Rain Go Away
Unless you plan to bring the outdoors indoor and make every single square foot of retail space covered shopping, you’ll always remain at the weather’s beck and call. According to our survey, weather was far and away the biggest challenge this spring for retailers.
“This spring has been worse than expected only due to weather,” a retailer explains. “We’ve had a great year so far – even broken sales records – but the cool, wet weather has kept many gardeners in a holding pattern. As a result, we’re left with a lot of unsold stock.”
One survey respondent commented: “It has become impossible to anticipate what is going to happen. Everything we normally use to determine planning doesn’t seem to be working. Over the past four seasons, each has presented weather challenges we could not anticipate. Weather is our biggest enemy, but throw in more conservative customers in these times and we are at a loss.”
Others surveyed added May was a month of extremes – wet, cool and then red hot with no gradual weather patterns. “Sweatshirts and jeans and umbrellas were a staple until the last week of May,” one retailer said.
Another added that signs of a slightly improved economy were visible, but unfortunately the weather interfered.
“Our worst spring weather in our 46- year history. Still a threat of rain every day and threat of frost most nights. People seemed slightly more free with their money. But no one will plant in the rain and with a threat of frost.”
Maintaining The High
Vegetables and herbs were the bandwagon everyone got on last year, which proved successful. Would it be as remarkably profitable again this spring? In one word: Yes. Retailers were able to maintain the edibles high they established last year.
More than 57 percent surveyed saw an increase in vegetable and herb sales compared to the spring of 2009, albeit the rise in this category wasn’t as staggering as the year before. Nearly half of the retailers who saw gains experienced 1 to 4 percent growth. Another 22 percent remained flat in edibles.
Native plants were another area of interest for consumers this spring. “Customers in our area are buying plants that are reliable and seem to be more interested in native and naturalizing materials,” one retailer commented.
Another added, “We sold many more native plants this season. This was the busiest and most profitable season we have had in several years.”
Mixed Messages
According to our 2010 State of the Industry Spring Recap survey results, 50 percent of the retailers surveyed saw an increase in March-May sales over 2009, with more than 22 percent seeing an increase of 10 percent or more. Those are pretty positive numbers. So does that mean consumers have dropped their fickle spending habits? One retailer isn’t so sure and says people are more resistant to higher prices and more aware of prices in the marketplace. Customers do more research online and are requesting retailers do better on price or at least match it with a competitors.
Another person said, “The customer demands more and more attention, bargains and information. At the same time it’s hard to raise prices, so the end result is more work and less profit.”
There’s no doubt 2010 was another tough year, but fortunately retailers are starting to see gradual signs of economic improvement. One surveyed retailer sums up his 2010 best: “This year has been a breath of fresh air. We still don’t trust the future.”














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