Plants and organics rule in 2008

Plants and organics are on garden retail buyers’ minds this year, the Garden Center Magazine annual survey revealed. The top three categories, out of 47, that retailers reported increasing orders for were plants: perennials (64 percent), herbs (58 percent) and annuals (56 percent). Organic fertilizers and organic pest and disease controls ranked fifth and sixth. Pots and planters ranked fourth.

The survey asked retailers about purchasing trends in 47 product categories, and 245 retailers responded. Only 1 retailer each in Hawaii and Alaska responded, so their responses are not included in the regional reports, although they are otherwise included.

Orders weaken

Garden centers’ buying habits were highly guarded over the past two years. Only five out of 47 product categories had a higher increase in orders from 2005 to 2008 [see chart on Page xx], and those categories were minor ones. A whopping 86 percent of buyers increased perennials orders in 2005. In 2008, this highest ranking category saw only a 64-percent increase in orders.

That said, some comparisons could not be made. For example, in 2005, a generic “organics” was on the survey. In 2008, organic fertilizer and organic pest and disease controls were separate categories. Similarly, herbs were not a separate listing in 2005, but edibles have increased so much in popularity, that it was added to the 2008 survey.

Weakest categories

Bulbs continued an ongoing decline, with 25 percent reporting they decreased bulb orders. Another 9 percent dropped the category. It was also the weakest category in 2005.

On the flipside of the organic trend, traditional fertilizers and traditional pest and disease controls saw a strong dip in orders, with controls taking the biggest hit. In 2005, 43 percent of retailers increased pest and disease controls, and 2 percent dropped controls. In 2008, only 13 percent increased orders while 5 percent dropped the category.

Statuary was a surprisingly weak category. Seventeen percent decreased statuary orders. Those that increased their statuary orders dwindled from 40 percent in 2005 to 20 percent in 2008.

Locally grown plants the norm

Nationwide, garden centers buy the majority of their plants from local growers. Three out of five retailers said locally grown plants make up 50 percent or more of their plant stock. One out of four retailers said locally grown plants make up 90 percent of the overall plant inventory.

Native plants, however, are not as common. Natives make up 10 percent or less for about a third of retailers nationally. Conversely, only a fifth of garden centers devote more than 50 percent of their plant stock to natives.

How stores differ in buying habits

A store’s annual sales largely predict its buying behavior. The lower your annual sales, the less likely you are to belong to a buying group or to buy inventory early and warehouse it. Buying group participation rose with each annual sales level, except for the very highest of more than $10 million per year. That group’s participation falls between the levels of the lowest group (less than $100,000 in annual sales) and the second lowest group ($100,000 to $500,000).

The most popular buying groups are Commerce, Master Nursery Garden Centers and Home & Garden Showplace/TruServ. Retailers, when asked to write in which groups they participated in, mentioned 34 separate groups overall, not including home-grown local groups.

Retailers used buying groups primarily for garden accessories (such as tools, gloves, hoses, etc.), bagged goods like fertilizers, mulch and growing media and outdoor plants. The products least purchased through buying groups were indoor plants, holiday goods and giftware/home décor. On average, buying group retailers stocked about 25 percent of their overall inventory through the group.

{sidebar id=3}

Click here for a PDF of regional hits and misses, including biggest increased orders and highest decreased orders by region.

Click here for a PDF of the graphs.

- Carol Miller

August 2008