Don’t Blame the Big Guys

According to “Garden Center Retailer Magazine “retail Lyndale Garden Center, once a year-round business, will close its Richfield, MN, store Monday with plans to reopen next spring as a seasonal operation. While spring sales were strong again this year, competition from the boxes has hurt overall sales, making it no longer feasible to operate year round, Owner Dallas Schwandt says. Last year, the single-unit independent posted sales losses of 12 percent, taking it down seven spots in Nursery Retailer’s Top 100 report to No. 83 with $7 million in sales. In contrast, nearby competitor Bachman’s, with seven stores, posted a sales increase of 2 percent, moving it up three spots in the ranking to No. 23 with $30.5 million in sales.

We tried to find the web page for Lyndale, but there isn’t one. Bachmans however does. While Bachman’s is a multi-store outlet in business for over a hundred years the fact is, they have a web page. Bachman’s sales are up, while Lyndale’s are down. The comment from the owner of Lyndales, Dallas Schwandt is telling, “competition from the box stores has hurt overall sales.” Once again we hear the box stores are the source of our troubles. It would be interesting if any garden bloggers in the Minneapolis/St. Paul area shop these stores and what their take on this is.

We feel for Lyndale’s. It hurts to see sales going south. We would like to know what Lyndale has done to distinguish themselves from the box stores, as we talked about in my last post We couldn’t get the info though, no web site. That sent up a huge red flare. Maybe it’s not the chain stores that are the problem. It’s just so easy to blame the big guys.

Native plants, Tony Avent, blogging, and the fringe.

The native plant controversy is a new thing for me. My interest started with the palm trees The City of Placerville was having "In n' Out Burger" remove, as the addition of the palms put the burger joint over the allotment of non-native species. I have a friend who is a landscape designer who told me of her frustration at having to deal with the officials at the county, and their insistence that 50% of the commercial landscape be native species to this county. That's Cercis occidentalis (Western redbud) pictured. It covers the lower foothills. Tony Avent ? I had never heard of him, or if I had it didn't register. Maybe I am more like Susie Cohelo than I would like to think. "Across the country, Americans have to get used to the way Californians live" she say's. I have had my head in California sand for too long. You mean there are places where you don't have to water your garden during the summer? Whoa!

Tony is spot on about the native plant movement. I love native plants, but I also realize that hybrids exist that often perform better than species. There is a lot of confusion out in the gardening world these days. Here at the nursery we have started to see the beginning of interest in GMO (genetically modified organism) plants and seeds. Our concern is the mis-understanding of what GMO means. It seems to mean different things to different people. When we tell some customers that many plants like "Early Girl" tomato and a "Fuji" Apple are a result of cross-breeding the red flag goes up. "Those are genetically modified aren't they" Well yes, but not the way you are thinking.

Much of this thinking is due to a lack of information. There is a rush by mainstream media to jump on the current topic of discussion and ride that pony for as long as they can. It sells magazines and air time! Native plants, global warming, GMO's, you name it. Those people who think a hybrid tomato is a GMO need more information. "Early Girl" tomato IS genetically modified, just not in the gene splicing way. It does not occur in nature, but is produced through cross-breeding. Oh, oh, that"s a bad word, "cross breeding", sounds like GMO.  Words are powerful.

What excites me is to find out there is so much information being exchanged by bloggers. Bloggers will be the ones that spread the knowledge. Even though you might think you're just an average gardener taking pictures and talking about your garden, the fact that you are using this medium to communicate places you at the fringes of mainstream gardening. That"s great, because it's at the fringes that really cool stuff happens. That"s where the excitement is.

Being an independent nursery.

Carol made a comment at my last post on Scott's. She said "Well, I guess Scott's must still think the independents are worth partnering with, still viable in the marketplace, still worthy of attention, so maybe that is good news?" Yes, it is good news. We have never thought that independent nurseries were going to go away. We believe that the number of independent nurseries will fall, but the remaining ones should be better able to differentiate themselves from "The Boxes", and better follow their own "independent streak".

It"s that independent streak that needs to be nourished. It's so easy to fall into the trap of trying to please all the potential customers out there. A couple of people ask about Miracle-gro or Scott's Turf Builder and most garden centers will carry them to keep those people from shopping elsewhere. Don't want to loose a sale. Scott's wants to saturate the gardening public with its products like Nike does with sports. Chains, boxes, independents, or hardware stores, they all carry the stuff. It's a smart business move, and the reason Scott's is such a powerful brand.

What we would like to see is true independence. There are plenty of products out there that do as good or better job than Scott's. Find those and give people a choice. While 70% of the gardening public will always shop the big brands the other 30% would love to try something different, for a variety of reasons. We are an independent, not a chain store. Why carry chain store products?

We don't carry much that you will find in a box store. Most of my plants, fertilizer, soil amendments, and garden accessories won't be found in box stores. My suppliers have made a conscious effort to stick by the independents and we support them. They do not try to sell to both independents and chains. It's hard to please both kinds of customers. Maybe Scott's will pull it off, but I just don't know.

Large brands like Scott's, Hines, Bayer, and others belong in large brands like Home Depot, Lowe's, K-mart, and Wall Mart. They are for the 70% of the gardening public that will not be your best independent nursery customer. Focus on the 30% that are looking for something different. Having Scott's products on your shelf won't help in branding your small nursery.

Scott's products are not bad. They are better than many others being sold, and it shows in Scott's growth. We just feel that if you're going to travel the independent garden center route you ought to quickly differentiate yourself in the marketplace, and carrying what everyone else has won't do it.

Scott’s new "Jim Cares About Independents" ad

I enjoy receiving various trade publications. It’s a chance to see what other nurseries and nursery people are up to. One I receive is “Nursery Retailer”, which bills itself as “Cutting Edge, Real World Retailing – Your Competitive Advantage.” Generally it’s an interesting read and one of the better trade magazines we receive. They also publish “Garden Chic” which was the source for my “Is Susie Cohelo from outer space(s)?” post. What I am interested in is what appears to be a very cozy relationship with the Scott’s corporation. This is something I hadn’t picked up on before, as it seems a little more out in the open now. The first page features a two page ad titled “Jim Cares About Independents”. Jim Hagedorn is the president of Scotts. The ad points out that Jim and the publisher of Nursery Retailer, Jeff Morey are traveling around meeting independents who naturally love and use Miracle-gro, one of Scott’s product lines. Considering the Scott’s organization is thick in the box stores its nice to see Jim cares about independents enough to take this ad out and tell us.

The next page is an ad for “Smith & Hawken” another Scott’s company. Flip through a couple of more pages and there is a huge ad for the IGC, Independent Garden Center Show in Chicago. One of the keynote speakers will be Jim Hagerdorn who sure “cares about independents.”

We then come to a multi-paged article on “Branded Plants." While they do cover Monrovia nursery, Proven Winners, Encore Azaleas, as well as others, sure enough there is “Miracle-gro Nursery Select Brand." It says “The Scott’s Company is the world leading supplier and marketer of consumer products for do-it-yourself lawn and garden care. In 2003, the company unveiled its independents-only product line under the Miracle-Gro Nursery Select brand. Premium annuals were introduced using the Nursery select brand in limited geography. The Nursery select program was introduced specifically in response to the needs of independent retailers and is an exclusive program.”

I mentioned in my post “We garden for you so you don’t have to” how Scott’s sold plants through the Smith & Hawken Brand. Well it now seems they are selling plants through the Miracle-Gro Nursery select program. They claim it’s an independent only program and I guess it is for now. We’ll see what happens.

My whole problem with this “Jim Cares About Independents” campaign is if he did he wouldn’t have to print it in large letters across the top of the ad. When someone who is most likely one of the largest suppliers of garden products to the box stores say’s he “cares” about independents it just doesn’t resonate.

I know magazines depend on ad dollars to make it. It’s just a little weird when the publisher of a magazine for independent garden centers starts traveling around the country with the president of Scott’s telling independents they “care.”

Hey Garden Writers of America, This Guy Gets It!

Interesting article by Steve Outing of "Editor and Publisher" about how he “believe(s) that the news companies that succeed in the future -- the ones that reverse the current newspaper industry malaise -- will be the ones that adopt audience interaction as a mantra.” He continues “The editor and/or publisher should have a blog, and use it to engage with and communicate with readers and advertisers. I don't mean fluffy blogs, either. If the top editor's blog reads like a press release, there's little point in having the blog.” Interesting stuff considering Kathy Jentz experience at the recent GWA, Garden Writers of America meeting, and Stuarts questions about "The UK Times" garden blog.

Free Trees?

I was lead to an article in The Washington Post after reading Claire’s post at Alameda Garden. It concerns free trees that The Sacramento Municipal Utilities District (SMUD) is giving away to residents to help reduce utility costs.

Where are these trees coming from? I couldn’t find out where Sacramento is getting these trees. Are they coming from their own nursery or are they getting them from private nurseries. I, as a nurseryman trying to make a living am quite interested when I hear of quasi-government agencies giving away something I am trying to sell. Maybe they do get them from private nurseries, it just didn’t say.

The article also say’s part of the problem is “a failure to plant shade trees in new residential and commercial developments.” One of the problems with many new developments is the trees planted are often dwarf or small growing trees, so as to not become too big and a maintenance problem. “Many people just don't like trees because they are dirty," said Buscaino, the former head of the federal urban forest program.”We have a lifestyle where the last thing on people's mind is trimming their trees."

I am all for big trees and shade. I put a premium on a property with shade for the hot summers. I get worried though when utilities, counties, and other government and quasi-government agencies try to help things along with “free” stuff. These organizations don’t do any thing for free. You and I will pay for them through our taxes and utility bill. Why do they have to be free? People won’t plant them otherwise? If you educated people about the benefits of tree planting wouldn’t they see the benefit and be willing to purchase them?

It’s a Mad, Mad, Mad, Mad World.

A post at Garden Rant about home owner associations and the restrictions they impose on what can be planted on your property got me thinking. I wrote a comment on that post about how our county requires at least 50% natives be planted on new commercial landscapes. I wrote, "I have a problem with people who dictate what species and style of plants can or can not be planted. If you do a commercial landscape in The City of Placerville the requirement is 50% of the plants be natives. Not hybrids mind you, but the species! If you want to plant drought resistant Arctostaphylos (Manzanita) you can't plant Arctostaphylos "Emerald carpet" which establishes well under landscape conditions. You must plant Arctostaphylos sp., the actual native, which does not establish well under typical commercial landscape conditions."

What happens is the species are often hard to propagate so most nurseries don't grow them. They won't live well after the soil has been stripped by machinery and all the beneficial micro-organisms which allow them to live in the wild have been destroyed. The land owner, in an attempt to pacify the county plants what they want, and within a year is pulling them out and replacing them with what the land owner wanted anyway. Why can't we plant the hybrids, which are also drought resistant but establish better so the landscape will last?

Where does this fifty percent rule come from? Why not 40% or 60%? What happens when government gets involved in private property landscaping?

Those of us in California recognize the In 'N Out Burger chain. Long a southern California icon they finally opened two here in Auburn and Placerville. They are now the two most northern In 'N Out's in the state. The founder, Harry Snyder's favorite movie was "I's a Mad, Mad, Mad, Mad World", which is why many stores have the crossing palm trees in front. Remember the giant "W" in the movie, made with four crossing palm trees? The money was buried there! I can still hear Jonathan Winters saying, "It's the Big "W", I tell ya! The Big "W"!"

The county declined the palm trees be planted here, as it would put the landscape over the 50% non-native rule. A few years pass and the new manager of the store decides to put the "two palms crossing" in. They are quite distinctive and can be seen from Hwy.50.

Just last week the county told In 'N Out to take them out! So these trees which had already been planted had to be removed. The manager apologized and said it was not his intention to go against the county's wishes, just that he was unaware of the rule.

These trees take up less than 10% of the total landscape that wraps around In 'N Out, Office Max, and a Chevron station. Why make things so difficult for business owners and landscapers who want to add some pizzazz to the landscape. Why force people to plant natives, when most of the time they perform poorly in these manufactured landscapes?

It seems that the words "native plants" has taken on a power of their own. Even though it is not a good horticultural practice to plant species that will never provide the results we desire, it doesn't matter. Just give us our 50% "native" landscape, or else.

The "long tail" just got longer.

What an amazing week for really understanding the power of this new medium we are using. If any of my fellow nursery people, garden center owners, or managers don’t think blogs have value, they are hiding their heads in the sand.

Early in August Amy had a post at Garden Rant about “The Long Tail” and the implications of the internet. One implication is “small is the new big”. She say’s “Will garden bloggers push and pull the garden media and horticultural industry until it conforms to our wishes?” I don’t know if they will conform, but they had better be listening!

My post of yesterday “The Nursery Consultants are Wrong” talked about how I goggled the name of the garden center Genie at The Inadvertent Gardener had dealt with in her “Bitter Experience” post. When I Googled the name of the garden center in question yesterday up came Genie’s post, right under the garden centers own web page listing! Yikes, you want to find this nursery’s web site and up come’s a customer’s complaint, too.

Maybe the garden center would be able to let this all just blow over, if they even know its happening. I can tell you that if we saw a customer complaint when we goggled the name of our company, we would be firing off an e-mail to that customer to see what we could do to make things right.

Well the long tail just got longer! Genie has been featured in article in the Des Moines Register for her blog!

Who would have though that this lady who just started gardening, had a bitter experience at her local garden center, blogged about it, is now being featured in an article in the town paper! If the garden center hasn’t noticed her post by now, then someone who now knows about the most famous garden blog in Des Moines surely will.

What an amazing chain of events. I will be watching to see if the garden center in question ever contacts Genie. Garden bloggers, do not underestimate the power of your medium to effect change. Those in the "horticultural industry", ignore it at your own peril.

The nursery consultants are wrong!

Back in June we discussed Genie's bitter experience at her local garden center. She wrote a number of posts on her visit. I wrote that if I were the owner of the nursery in question I would be reading her post. The problem for the garden center owners is they probably don't even know this conversation is going on. We are only at the beginning of this "blog revolution" that will change the gardening world. If you don't "get online", you'll miss out. A few weeks later I was interviewed by a nursery trade publication, that read the post. They had some questions about whether the nursery trade should be interested in blogs. According to them, the consensus amongst most nursery consultants was there is no relevance, and no reason for nurseries to be interested in blogging, or bloggers.

Well I decided to test my theory that everything has changed, and the nursery consultants are a sleep at the wheel. So I Googled the name of the garden center that Genie had her experience at. Guess what? Her post is the third entry that comes up right after the garden centers own web page! Now you can read about the garden center and a dissatisfied customers experience at the same time.

Yup, garden blogs have no relevance to garden centers!

The business of spreading cheer.

Having just read the post at Garden Rant about the lady in New York who decorates her front yard with fake flowers and Christmas trees we come to this article in The Washington Post. People are putting “giant, sprawling greeting cards on front lawns for birthdays and anniversaries.” According to the Post “This is a new way people in the suburbs talk to each other. Even though they spend more time hunkered down indoors with computers and flat-screen TVs, 21st-century suburbanites still want to communicate with their neighbors (and anyone else who happens to drive by).” With all the talk about suburban gardening and gardens we have had on this blog and others it’s interesting to see this trend and ask, what’s it all about?

Unlike the lady in New York, who I believe decorates her house the way she does to irritate the neighbors, these signs seem harmless enough and won’t be there for more than a couple of days. What I find so interesting is the statement that “this is the way people in the suburbs talk to each other.” This statement by Dawn Coolahan, who installs the signs say’s it all, ‘sure, this stuff is in your face,’ Coolahan says of the great public celebration playing out on the nation's cul-de-sacs. ‘This is what the business of spreading cheer is all about.’”

This is the state of American suburban living? Yelling, look at me, it’s my birthday, anniversary, whatever. Spreading cheer is all about "in your face", over the top, yelling at your neighbors, and if you don’t find this stuff cheerful then you just an old Scrooge. “Once upon a time, a blue ribbon tied on a mailbox was enough to announce a baby boy's arrival. Today, towering fiberglass storks plunked down in front of a house broadcast the name and weight of the latest family member”, says The Post. Back then you would see the ribbon, and stop to talk to the neighbor and get more details. Now you can put all the details on the giant sign and avoid talking to the neighbor’s altogether. I cant wait till these cards come with audio messages.

I love the last paragraph of the article, “Then there was the woman who did not appreciate the six-foot 40th-birthday card sent by her husband. It was called "Out to Pasture" and featured a chubby black-and-white cow. "I guess she was not happy about turning 40," Coolahan says. "She asked us to come and remove it right away."

Maybe it’s not about turning 40; maybe it’s about announcing it to the whole neighborhood with a tacky card. Hey hubby, tackiness is still tackiness, despite the size of the card.

Garden center magazine interview

One of the garden center trade magazines interviewed me a month ago for an upcoming article on gardening blogs. The consensus from the "garden center consultants" was that blogs were unimportant, and nothing for the industry to think about. Well, naturally I disagree and hence the reason for interviewing me. The following is the interview.

Q: Do you think independent garden centers are even aware of blogs? (I'd say the answer is no based on your recent Plant-trafficker (link no longer works) entry. If not, should they be? Why?

A: No, I think most independent garden centers are not aware of blogs, or at least garden blogs. Should they be? Yes! We are told over and over again by the same industry consultants that say blogs are irrelevant, that we need to court generations x,y,and z. Were told that they are the future of gardening. Appeal to the younger crowd. Where do you think the younger crowd is talking and getting its information? The web, chat rooms and blogs! If you want to get a pulse on the audience you are trying to reach then use the same medium they are using.

Q: Do you think garden centers should consider starting a blog? If so, what kind of content should it include?

A: Garden centers should only be willing to do a blog if they enjoy doing it. You start a relationship with the readers, and it takes time to communicate with them. If you look upon it as a chore, you won't update it regularly. Blogs need to be updated weekly or more often. The younger generation, and actually I think all generations, can sniff out phoniness and won''t tolerate a blog that seems to be pandering to them. One type of content to avoid is the sales pitch. Blogs that are nothing more than sales pitches for some new pottery that's arrived, or a plant sale they are having, in my opinion, just are not effective. That doesn't mean you shouldn't tell people about a new product that would be a benefit, just don't do it for every little thing you want to sell.

I want to tell a story about The Golden Gecko Garden Center and the life of a nurseryman. I want to read comments on my blog that I would never hear from customers in my store, customer panels, or surveys. People are much more open and less intimidated by me on their blogs than they are at the nursery, and tend to be more honest or expressive. I think people like having someone in the industry listen to them. Honest feedback from the consumer, who in business wouldn't want that?

I use my blog as a listening post as well as a way to bounce ideas off a very willing audience of gardeners. These are people who shop at nurseries all around the world, and have something to say.

Q: Do you think garden centers should start monitoring blogs to stay on top of customer perceptions or comments? A: I don't think you need to monitor blogs. Just "Google" your name or the company name and see what comes up. You may be surprised! Be aware that your customers are using the internet, including blogs.

Tina, you’re not alone!

In my last post concerning Scotts Miracle-Gro Tina commented, “Boy, do I feel GUILTY, Trey! I'm in a new subdivision (IL), and although I do a lot of the outdoor work myself, planting gardens and trees, I do have a local landscape outfit cut and fertilize, etc. every week. Not Scotts or Chemlawn though. But I am also a victim in our subdivision! Our lawn and gardens look as good as I can get them, while still working a 45-50 hour work week outside my home, but there are plenty of homeowners who simply ignore everything on the outside of their homes. (Wonder what that says about the INSIDES!) The developer's sod looks horrendous, especially since we have had little rain, the weeds are twice the height of the yukky, sparse grass. How I wish these homeowners would do ANYTHING to keep their grounds looking nice. *sigh* These people are so strung out on paying their mortgages that they have nothing left for the nurseries or even the BOX stores.”

No guilt! Younger families often have no choice but move into subdivisions that have affordable homes. It’s admirable that you feel it’s important enough to pay for garden care. 45-50 hours a week will wear you down, not much energy to garden. Many of the garden services out there are made up of hard working, well meaning people.

What’s really neat about your comment is how, just five years ago, we would have never had this conversation. Imagine its five years ago. You have just moved into one of these subdivisions and yearn, like Tina, for something more. Looking up and down the street you might not find anyone doing anything worth talking about in their gardens. You turn on HGTV and find shows that tell you with the right amount of money and throw pillows, you can do anything. Garden Magazines are not much better. None of the gardens pictured look like a garden you might want, or afford. They just don’t speak to you.

Now everything has changed with garden blogging. Tina can see real gardens, and talk to real gardeners. She is not alone! Other people have gardens that look like what she might want to have. Some people have gardens that are never “done”. They are works in progress. Some Garden bloggers are brand new to gardening, and she can share in the challenges and fun they experience.

There is great pressure to fit in with the other neighbors. Now with garden blogging you can find out how other people have dealt with the same challenges. That’s why I think garden blogging will usher in a whole new gardening renaissance. More and more people will see real gardens, and gardeners, and be inspired. This is not going to be a mass movement, but will be embraced by those on the fringes, like garden bloggers, who yearn for more. It may spread from there. We’ll see.

We garden for you, so you don't have to!

The last post on Scott’s Miracle-gro mentioned a “what if” Scott’s bought out Hines nurseries and sold plants. A comment by Lisa ofMillertime mentioned how she just “bought my gorgeous new copper window boxes from Smith and Hawken-they were the least expensive, high quality boxes on the net. I am surprised at their corporate ties, though-I had no idea.” So I went over to check out Smith and Hawken on the web. It’s a classy website with cool things for the garden, including plants. So Scott’s Miracle-gro does sell plants through its subsidiary Smith and Hawken. Check out the plants. Here is a set of three Shasta daisies “Old Court Variety”, set to arrive in 2 ½ inch pots for, $29.00, not including shipping and handling. Here is a "Dancy" Tangerine in a one gallon pot for $49! A one gallon pot! We sell one gallon citrus for $12.99!

Scott’s has positioned itself as the supplier of plants, soil amendments, fertilizer, and Scotts Lawn Service, which will also care for the rest of the garden. You don’t need to go anywhere else for garden stuff. They have it all!

Scotts not only has cheap fertilizer and soil amendments, but also the high end products of Smith and Hawken garden supplies, and Scott’s high end fertilizers and soil amendments. No wonder they had a 51% increase in profits for the third quarter.

What’s wrong with this? Nothing. Whatever they are doing the gardening audience is eating it up. It’s what drives small garden centers nuts. How do you compete with this? The picture on the top of this post could be the Scott’s team working in your garden!

Another comment by Claire at Alameda Garden suggests why Scott's saw such a big increase in profits, “Consider how many new housing developments have been built across the country. There has definitely been a housing boom, and in this country that means lots more lawns that people are feeding all those lovely chemicals. Ka-ching!”

If you look at Scott’s Lawn Care service they will provide the following: fertilization, broad leaf weed control, crabgrass prevention and annual weed control with “Halts”, “Grub ex” grub protection, insect protection, late fall feeding, continuous monitoring, core aeration, disease control, lawn seeding, and free service calls. You don’t have to do anything. These same services are available for the entire garden! What a great program for our overworked, over stressed, suburban home owners. When they bought the house it was landscaped by the developer, and now they can have Scott’s do most of the gardening, so you can concentrate on placing the throw pillows in your "outdoor room" for the next Moroccan themed party you have.

You can’t argue with this kind of success. If that many people want this service and product mix then there is nothing but growth for Scott’s. Driving through the new sub-divisions in Folsom, Citrus Heights, Rocklin, and other greater Sacramento areas you can see the results of this trend. There is something depressing to me when I drive through these sub-divisions that are empty of people between 9 and 5, front yards put in by developers, and poorly maintaind by the homeowner. That’s why they need Scott’s Lawn Care Service. Most don’t know the first thing about gardening, and really don’t want to learn. Have someone else do it.

While these trends might cause grief to a small independent garden center like us, it also spells great opportunity. It’s best not to stress over the people who won’t come into your store anyway. We need to address the needs of people who find this type of “gardening” a bit shallow. It’s not a big group, but it could be a very loyal group. Most garden bloggers are in this group, which is why I am so interseted in what you are all saying.

Scott’s not feelng the pain

Right after finding out that Hines Nurseries profits dropped 12% for the second quarter we find, according to Nursery retailer Magazine, Scotts Miracle-gro Company “posted a record 51 percent hike in profits for the third quarter, crediting the jump to strong sales in North America and in its lawn service division. Net income increased to $133.3 million from $88.5 million a year earlier. North American consumer purchases at its largest retail accounts improved 10 percent from last year, led by a 28 percent increase in lawn fertilizer purchases and a 24 percent increase in garden soil sales. The plant food increase was driven by the launch of Miracle-Gro LiquaFeed, with year-to-date sales of more than $35 million. The company says it is the most successful new product launch in its 138-year history.”

How is it that Hines and Scotts, two of America’s largest garden companies could have two such different results during the same period?

I don’t have a definitive answer, but an educated guess. I know that at The Home Depot wholesale nurseries are not paid until The Depot sells the plants at retail. Hines drops huge numbers of plants at The Depot for spring. Here in California it rained until May, causing spring sales to drop. If the plants don’t sell then Hines has to pick up the plants and ship new ones once the season finally get’s going.

Scott’s products are packaged and not subject to the same problems that plants have in a box store environment. I don’t know if Scott’s has to guarantee sales to The Depot like the wholesale nurseries do. Shelf life for Scott’s products is a lot longer than plants, too.

Scott’s is also much more diversified than Hines. Hines sells plants; Scott’s owns Miracle-gro, Osmacote, Ortho, Round-up, Smith and Hawken, and Scott’s lawn services. When you are this diversified it’s easier to smooth out the ups and downs.

In the long run companies like Scott’s actually reduce the choices to consumers. While they will tell you they are coming out with new products to increase your choices, I can’t imagine that Smith and Hawken is the same store that Paul Hawken built and then sold. You can look the same on the outside but once corporate gets a hold of it the culture changes.

How will Hines deal with the downturn? Cut costs? Sell out to Scott's? How will that affect plant choice and quality? We’ll see. While stores like Wall Mart and Home Depot will say they are keeping prices down for the consumer they may be actually be reducing your choices in the mean time. Imagine, "Scott's Miracle-gro Hines nursery division"

It’s the Homogenization of Gardening

"Significant pricing pressures"

Word has it that Hines Nurseries, one of the nations largest wholesale nurseries, didn’t have such a good year. According to Nursery Retailer Magazine, “Hines Horticulture is selling its color nurseries in the Northeast, four facilities total, plus certain assets in Miami. The company made the announcement as it released its second quarter results, which fell 12.4 percent from second quarter last year to $154.9 million. Net sales for the six-month period ended June 30 were $211.8 million, down 12.1 percent from net sales for the same period last year. ‘Delayed product availability as a result of rain in Northern California, poor product sell-through at our customers’ stores in the Southeast and lost market share throughout the Eastern Region all contributed to the sales decline in the second quarter compared to a year ago,’ says Rob Ferguson, Chief Executive Officer. ‘Despite our efforts, our market share in the Northeast, Mid-Atlantic and Southeast has continued to deteriorate. More intense competition, significant pricing pressures and customer consolidations have all contributed to the decline in net sales in these regions.’ In March, Hines sold 168 acres in Vacaville, CA, for approximately $16.9 million.” That Vacaville property is about 60 miles from here.

We don’t have too much sympathy for Hines. We don’t buy from them as they are thick in the box stores. I find the statement “…significant pricing pressures…” interesting. Could this be that the boxes are squeezing the wholesale nursery trade? I know that at Home Depot, vendors like Hines, don’t get paid until the product is sold at the retail level. If the plants remain unsold for any reason, Home Depot does not pay. Considering the care plants receive at my local Home Depot I am not surprised that there are many unsold plants. I wouldn't get the same treatment from Hines or any of my vendors. I have to pay, and then do my best to sell them.

Hines, Color Spot, and other nurseries that have sold their souls to the chains are going to see further “significant price pressures” as we move forward. I predict that some of these wholesale vendors are going to be sniffing around independent garden centers to see if they can pick up some business. It will never be enough to make up for the losses, but desperation breeds strange bedfellows. We pay before we sell the plants, and do a much better job keeping the plants looking better. Hines is going to find out that better independents have forged bonds with their suppliers, who didn’t sell out to the chains.