Retail garden center

One of the most important factors in the eventual success of a retail garden center is the site chosen for its location. If located on a highly visible site, within 10-15 miles of an urban center the first challenge of marketing has been achieved: customer recognition. At this point however it's advisable to consider all the factors that contribute to site and location as they play a large role in how the extensive the future enterprise can become.

Location vs. image
Mass merchandising hardware stores started carrying gardening wares and plants in the early 1990's. There original plan was to build uniform stores in selected parts of the United States that would attract a large number of shoppers to a highly viable location, by offering a large concentration of hardware items for the do-it-yourselfer. By offering acres of parking, and arranging their stores with grid structured isles, customers would be able to quickly move through the stores as if shopping for groceries (1). By serving the low-priced end of the plant material market, and using aggressive marketing tactics, the chain store evolution prospered very well. Today the design of these stores has been replicated throughout North America, and now overseas as well.

The distinctive entrance sign of Old Barn Nurseries, in West Sussex England, is one to remember.

In the lawn and garden department chain stores offer a relatively narrow range of commodity plants (1,000-2,000 SKUs) arranged for quick sales (2). Mass merchandisers base their inventory largely on price-sensitive products that are commonly stocked and purchased items in the lawn and garden trade. Examples include packs of annuals, consumer packages of pesticides, shovels and hoses, bags of fertilizer, and a limited array of perennials. Mass merchandisers base their store location on the greatest population density in the community.

Independents specialize
Conversely, independent garden centers must compete on a whole different set of standards in term of location and image. While proximity to a well traveled road is important, the design of the building, and the layout of the surrounding display gardens (2) can be even more important. Unlike the somewhat regimented shopping style inherent to chain stores, an independent retailer is looking to inspire customers to stop, shop in a leisurely fashion, and to come away with home beautification plans. By having three times as many products (over 6,000 SKUs) the independent has a much greater chance of appealing to a wider audience. Every effort should be made to make the structure as interesting as the budget allows. By surrounding the structure with lawns, established plants, well thought out signs, and hanging baskets of colorful annuals, customers are drawn in to spend a leisurely time shopping. Landscape architects should be consulted in the initial selection phase in order to gain their advice on how a prospective site could be developed to into an award winning design. In short, while location is important selecting a prospective site, the over-all image of the finished plan can take precedence. Success comes from differentiating one garden center from another.

Location vs. price structure
There is no universal standard to solve the location/price structure equation. Each retailer will need to conduct a thorough market analysis of the surrounding demographics, competing plant centers, and average income levels. In all but the most isolated areas the independent garden center retailer must avoid trying to compete based solely on becoming the low cost leader. In any business the most successful firms have developed a focus that enables catering to particular market segment. During the 90's there was overbuilding of consumer retailing firms. Shoppers were faced with an array of merchants to select from, many of whom were carrying similar products. In the case of clothing and general department stores, customers had a hard time determining a company's core identity. When shoppers started to reject the shopping mall, the general merchandiser that lacked a focus were soon faced with bankruptcy. With the birth of on-line shopping the stores that lacked a focus were forced to redefine their future business and marketing focus.

Independent garden centers however, still flourished during the 90's. As housing construction continued and personal wealth expanded, the desire for plants of all types increased. In suburban areas, family run garden centers found that if they carried a good selection of interesting perennials, trees, and shrubs, at reasonable prices, they could see their profits increase each year. If a chain store was located within 10 miles, the independents simply provided a different set of plant cultivars and pot sizes.

Today the most successful independents carry a very wide range of plant cultivars and sizes. In the case of specimen garden trees it is not uncommon to find grafted liner stock along side 10-25 gallon mature trees. In economic terms the larger stock sizes are considered less price-sensitive as they are uncommon. Consumers simply do not have any preconceived notion of what the larger size plants cost to grow, and thus the retailer can mark them up accordingly. It is not uncommon to price larger specimen plants at prices as much as 2.5 times wholesale, especially when the store is located near a dense urban area. By providing a range of sizes the retailer can cater to a greater range of customer income levels. The range of garden accessories has also increased. Independents now carry moderately priced outdoor furniture, ceramic pottery, water features, and a much higher quality of tools than would be carried by mass merchandisers.

Location vs. other garden centers
There are often a number of suburban garden centers fairly close to one another (less than 5 miles apart). Customers prefer this approach as they can do more of their shopping in one location. Competition generally elevates the level of sophistication all marketers. The more prosperous stores feature better customer service, a wider range of products,

The entrance to Squires Garden Centre in Twickenham England. This is the flagship store (of 7 locations) for a family owned business first established in 1935. All of the Squires' stores are located near the southern fringes of heavily urbanized London.

more interesting buildings, better plant signage, and year-round seminars. Having a cluster of garden centers in one area can help support the creation of garden and home improvement fairs. Each February the Oregon Association of Nurserymen hosts the Yard, Garden, and Patio Show to herald the start of spring. With over 200 vendors, in recent years this consumer show has seen its attendance grow to as many as 40,000 visitors over the 3-day time frame. In Washington the Northwest Flower and Garden Show is held each February as well. This gardening trade show is classified as the 3rd largest of its kind in the United States.

In our automobile centered society, driving a few short miles further to shop for plants on a weekend is certainly not uncommon. In the age of consumerism shoppers have come to expect outlet clothing stores, automobile dealerships, and fast-food franchises to locate near one another. When a group of like minded stores locate near one another shoppers are inspired to explore a greater number of stores. Under these conditions garden centers have the opportunity to focus on a particular segment of the population, and reap the financial rewards that specializing can bring.

Affluent locations present their own advantages
If there is a high density of higher priced homes and condominiums in the immediate vicinity there is every reason to believe that the astute plant entrepreneur can design and present a superior image in terms of not only plants but also garden accruements. In short, a true retail destination can be built around the shopping experience itself!

In southern England the more astute garden center retailers have located their stores in some of the most affluent suburban areas southwest and southeast of London. By capitalizing on the proximity to major express ways these retailers have set up very large operations (many well over 5 acres in size). By offering a full range of not only plants but also furniture, clothing, and gift ware these operations have been able to flourish even when they are close to mass merchandisers. As a group the English retailers have formed the Garden Centre Association (3) in order ensure that customers shop in stores that have been annually inspected by an independent auditor to meet the highest standards of customer service, plant quality, and reliability.

In the Pacific Northwest some of the most successful retailers have chosen very expensive retail pads in order to justify a high-quality, high-service image in order to return a much higher price to cost structure. Such operations often have beautiful indoor shopping facilities, park-like display gardens, and a considerably higher quality of garden accessories. Often there is less than 5 acres of total land devoted to the entire operation, as essentially all the plants and accessories have been purchased on the wholesale market. Clearly the intent of these firms is to cater to the affluent, middle aged and older segments of the population. Plants are often sold in much larger sizes. The range of container sizes and the material of which they are made of appeals to gardeners seeking a sense of self expression. The Northwest growers have not formed a quality assurance program such as the English growers. However in Oregon, the Oregon Association of Nurseries have compiled a consumer's "Guide to Oregon's Retail Nurseries" (4). This guide lists 139 retail locations across 70 communities, primarily in areas west of the Cascades.

Quality over quantity
Owners of higher-end garden centers don't try to carry an extensive inventory realizing that personality retailing appeals to the uniqueness of the product (5). A detailed retailer knows how to source new and unconventional items from North America, as well as Europe, and how to instill a sense of imagination and allure in the minds of the right type of customer. As customers have not probably not seen a particular item before they don't have any preconceived idea of what the item costs. The perceived value of such an is enhanced by it's higher price tag. If the enterprise has an enhanced image, customers will 'perceive' that the higher price is in line with the atmosphere that the store presents.

Does the location offer room for expansion?
In Tony Avent's recent book on starting a nursery the author predicts that successful garden centers, offering year-round sales, can expect to see their sales double during the first 2-3 years of their existence (6). Afterwards, for the next 5-10 years, a 30-40% increase in annual sales is possible. These projections point out the need to project whether the initial site chosen for the retail garden center will be large enough to handle the future sales projections and need for parking. It is advisable to select a site where expansion can occur. Consult with city and county planners for their thoughts on the future of the land selected. In Washington the Growth Management Act (7) of 1994 requires that counties construct 20-year plans for both urban and rural lands are developed (or protected).

Location and labor supply
Finding good labor to staff a prosperous garden center is easier when there is an urban area nearby. Garden centers can establish intern programs with area high schools to find par-time labor during the summer months. For permanent staff recruitment the presence of a community college or 4-year university helps in sourcing job applicants who base their credentials on their academic training. The Oregon Association of Nurserymen helps sponsor college students in horticulture programs at both community colleges and at Oregon State University. For more information turn to the Oregon Nurserymen's Foundation Scholarship Program. The Washington State Nursery and Landscape (8) Association (WSLNA) help sponsor the Certified Professional Horticulturist program. The WSNLA also has a Scholarship & Research Charitable Fund to fund students studying horticulture and other related fields.

A busy summer day at a Northwest garden center. The parking lot is right off of a well-traveled city street. Overflow parking is situated nearby.

Location and road traffic
In general the site with the greatest road traffic nearby will experience the highest number of drop-by customers. A visible location on a major highway, where there is enough time to slow down and turn, is highly desirable. Studies have found that drivers will more likely turn in if speed limits are under 50 miles per hour (9). Drivers will shy away from sties where it looks hard to turn in safely, or to re-enter the main flow of traffic. Be sure that the entrance and exit is clearly marked so that drivers know where to turn in.

References
1. Establishing and Operating a Garden Center. 2002. Susan Barton, editor. Natural Resource, Agriculture, and Engineering Service (NRAES), Ithaca, New York. Publication 161.

2. Just About Everything a Retail Manager Needs to Know. 2003. John Stanley. Published by Lizard Publishing, Kalamunda, Western Australia. Sold in the United States by Ball Publishing, Batavia, Illinois

3. Garden Centre Association, Theale, Reading, England.

4. Guide to Oregon's Retail Nurseries. 2003. Hard copy, provided by the Oregon Association of Nurseries, Wilsonville, OR.

5. Retailing plants successfully. 2002. John Stanley. Chapter 11 of The Complete Guide to Garden Center Management. Ball Publishing, Batavia, Illinois.

6. So You Want to Start a Nursery. 2003. Tony Avent. Timber Press, Portland, Oregon.

7. Growth Management Act. 2003. Washington State Office of Community Development, Olympia, WA.

8. Washington State Nursery and Landscape Association, Sumner, WA.

9. Marketing on the Edge: A Marketing Guide for Progressive Farmers. 1997. Canadian Farm Business Management Council, Ottawa, Ontario.

First posted: December, 2004