John Stanley notes

Greenhouse Conference, Niagara Falls, Oct. 6, 2011

FACT There will be fewer IGCs next year, and fewer again the year after. This is worrisome, but it also presents good IGCs with an opportunity to own the market. Future GCs will be -niche retailers in high density locations. People will travel less. -A location retailers -There will be no room for the me-too retailer CHALLENGES FOR IGCs -Understand your consumer > 35 yr old female > shes harder to capture, understand, predict than ever>But she still drives the buying decision. -Consumer habits are changing. People shop for experience, not stuff.>In other words, they are buying the story. For example, ITOH Peonies. Fair trade coffee, > What story does your road side look, your entry, your staff tell about your business. - people remember stories, not facts about a product -are you exceeding expectations > employ the delight strategy, do you create a memorable experience or process the customer -Box store penetration> Can an IGC outsell them? NO! Can an IGC out teach them? YES! -Social media marketing > in 2 years 40% of sales will be clicks led (60% bricks led) -The Latte Factor. If you dont get the experience right, the coffee shop wins. The technology factor allows:-easy price comparison -vouchers on web-page or on-line -easy information sharing > QR codes -Consumers can very easily start pro-brand (or anti-brand) campaigns on Facebook, Twitter -If youre doing all this right then you have a memorable brand and remember: The Brand is not what you say it is, but what your customer says it is. MARKETING Needs based marketing -keep me safe and stress free (IE provide activities to keep my children happy while I shop) KIDZANIA is a concept from Mexico to entertain kids while parents shop -easy parking, follow through after sale with carry-outs etc. > the process ends at the customers car, not the register -save me time and effort Wants based marketing -help me experience the world -recognize me as a person Marketing with a cause >Pick your charities and publicize them -Take advantage of free marketing > whats in magazines, on TV, do you have it? -Be a show stopper > do 35 year old women notice your displays > cone shaped and round displays are more effective, use color to make a statement > purple is trending color this year -Are your plants in straight rows, or do you build interesting displays. Its ok to borrow ideas from other retailers.

HOT GARDEN RETAIL TRENDS -childrens garden category > together in store not scattered about. Just look at Chapters, theyve recently doubled their Kids section. (fairy gardening with small plants, mini furniture etc). Shoppers want a child friendly environment -Edible Landscape > have a section where all fruits, veggies, herbs, edible flowers are displayed. -COLOR> for some reason I got an elbow in the ribs when John said this ITS THE END OF SILENT RETAILING -the consumer expects APPs -loyalty clubs > above 40 crowd loves them, under 30s dont get the point -facebook places / google circles / foursquare > are you there? -groupon and the new twist groupon nowvery cool Online content > by the end of this year 70% of consumers will have smart phones and by the end of 2012 nearly everyone will Develop a social media policy and use it. Social media is low cost, easy to integrate and has a huge audience ***THERE IS A REAL DANGER FOR IGCs THAT THE BIG BOXES WILL DEVELOP THE HIGH GROUND IN INFORMATION*** Consumers expect simple, easy to use (and access) info. Upcoming trends are QR codes, mobile payments, and click and collect where the product is ordered on-line and collected at the store. Use signs but with this formula PRODUCT NAME, THREE POINTS, PRICE (any more is too much) >Use signs with staff pictures Sallys Favourite Perennial >Employ garden rooms as display modules, consumers are looking for ideas >Create urgency > Plant Now, warm soil and cool temps promote root growth VALUE What is your added value offer at the GC > does your customer understand your values -todays consumer is looking for: -value based spending -learn new skills > if you can out teach the competition youre in a good position -maybe seminars are still relevant, do you have experts on staff -interested in durable living > if a $100 rake last a lifetime its a better value than a $20 rake that lasts two seasons In spite of this industrys perceptions, consumers are doing more baking, activities with kids and gardening. REMEMBER interest in shopping is declining, but they will come for the experience. TRUST is declining as well. -78% rely on friends, 56% in on-line content, 14% on advertisers -and its declining > people dont trust the salesman and this takes away from the shopping experience> so get rid of your salespeople and turn them into Daymakers their job should be to make the customers day. -Theyre ambassadors for your company, what message are they sending?

PRODUCT RANGE Consider the following Range> what lines will you carry, are you competing with big boxes carrying the same lines? Advice>Stories help people remember, but so do QR codes on the tag Freshness> not only how fresh it is, but where it is from, are your tomatoes from the farmer in the village up the road, or from California. If theyre local > you should be telling people, its part of your story Seasonal Awareness> many garden centres look the same through the seasons. THIS DOES NOT ADD TO THE EXPERIENCE. Are your displays changed to be reflective of the season? Price>You cant compete with big boxes on price, but your customer is price conscious. -Does your pricing strategy change when plants are in color? -Pick a common large volume item and price it .01 below the competition. Put a huge sign on it Best Value in Town! If not please let us know! It tells people you are aware. Manage your inventory. If perishable product still around after X weeks, blow it out. Every month you have it in inventory costs you money. -offer a value range and a premium range (durable)

MAKING THE EXPERIENCE 80% of companies believe they offer awesome customer experience. 8% of customers agree with them. -The visual moment is critically important. >What message do the following send about your business? curb appeal, front entrance, parking lot -Smells why would you lead with negative smells (Bonemeal) or ignore positive smells (Put a huge sign on fragrant plants Smell Me) -Sound, too much is bad, too little is worse. Do you have music, flowing water,? -Touch> encourage touching, it fosters a sense of ownership -Follow up. Is it working? Watch how the 35 yr old female interacts with your displays. -Complaints: think of them as a gift (within reason) too many is not good, but none indicates a complacency in your staff, a few is an opportunity -Dont be better than the competition, BE DIFFERENT

CHALLENGE Are you an ideas and solutions garden centre? The reward is a much higher conversion rate than straight row merchandising. Your customer is not a gardener, but they are fashion conscious and want to decorate their outdoor room.

FOUR KEY QUESTIONS YOU MUST BE ABLE TO ANSWER 1) What does the best mean in your customers eyes? 2) What does the customer expect from us and how do we exceed it? -how do you delight customers -how do you do it consistently -how do you measure it Space 60% aisles 40% product. Congestion causes stress, waiting to pay causes stress, inability to find items causes stress, bad signage, too hot, too cold, too bright, too dim: get the idea? Often simply change is good enough. Something new to look at. 3) What way do we build categories? 4) Is this team capable of providing the offer? Companies shifting in a new direction will meet resistance from 20% or more of staff. Seven Step Plan 1 People will respond emotionally, not rationally to changes 2 Ask, dont tell 3 Let them think its your idea 4 Aim to progress positively. Use the easiest idea to agree on 1st 5 Use the you factor 6 Support your ideas with facts 7 Have your ideas summarized on paper