Lawn & garden sections can be money makers

A DEALER considering adding Fl or expanding a nursery section will probably find the positives outrank the negatives.

Probably the biggest plus is the impressive number of dollars being spent eachyear for lawn and garden products. Retail sales for these in 1988 were an estimated $15.518 billion.

A National Gardening Association survey conducted by the Gallup Organization reported 7601r of the 9l.l million households in America (an estimated 69 million households) undertook one or more indoor or outdoor lawn and garden projects. Ll.S. households spent an average of $227 on gardens and lawns in 1988.

On the negative side, 1988 retail sales of these products lagged l00lr below 1987 because of the widespread drought. Average temperatures in many areas were the hottest in 50 years. Weather probably has the most negative effect on lawn and garden sales.

Live plants including bedding plants, tropicals, balled and burlapped and container grown stock provide good margins and turns. Not price competitive, they average double or triple return on investment.

Although the sales of seeds, plants, bedding shrubs and trees and related products such as mulch, bark, insecticides, fertilizer, plant food, weed killers, tools, irrigation systems and containers are pluses, display and care of a fragile, perishable live inventory can be a negative. However, many home centers have arrived at innovative solutions.

One dealer combines displays of green goods with outdoor furniture displays. Another maintains a constantly changing display of seasonal flowers beds at the front ofthe store, combining landscaping and display. Another sets colorful flower bowls on the counters in the information and checkout areas. One innovative garden manager set up a trellis atthe store entrance to display vines and hanging pots. Eyecatching signs tell customers where they can find these items.

Story at a Glance

Ways to get in on $15 billion in sales. proven solutions to possible problems...techniques for maintaining green goods and attracting buyers..

Huge massed displays of garden products near the entrance or in the main aisles can remind customers that the store has a lawn and garden department. They also are good impulse sale items.

Watering and maintenance must be consistent to keep the inventory fresh and inviting. Many stores have solved the problem by having apart timer who does nothing but water and groom plants. Retired people with intensive gardening experience or horticulture students are perfect for these jobs.

The seasonality of a garden shop requires extra effort for retailers in areas with extreme weather fluctuations. When stores can no longer sell annuals andshrubs sensitive to cold, they turn to winterized products, emphasizing houseplants, tropicals, Christmas trees, poinsettias, trim-atree, holiday items and equipment to deal with snow. Others use an outdoor area with overhead covering during the planting season and close it off in winter.

Sales people able to answer questions about plants andgive gardening advice are invaluable. Some stores hire a trained horticulturist. lf this is not possible on a fulltime basis, a specialist can conduct clinics or be on duty as an answer man on weekends. Many garden chemical manufacturers make such people available as a promotion for their products.

Industry statistics show that on average home centers devote just a little over 8% of their selling space to a lawn and garden department with a GMROI of almost 1.75. Lumberyards with d-i-y clientele allot about 4oh of the sales floor to lawn and garden with a GMROI of 1.67.