July 2021 - 46

POHMER ON ...
MY MONEY
IS ON YOU
To thrive in 2021 and beyond,
IGCs must study, watch and
learn what the innovators are
doing, and then apply them to
their own business.
but how each of you view your degree of success will differ
based on your planning expectations.
By Stan Pohmer
A
s I write this column a few weeks post-Mother's Day,
the spring results have ranged from uninspired to good
to outstanding, depending on your varied expectations
and perceptions as compared to 2020.
To help put things in perspective, 2020 was an anomaly;
once most garden centers got approval from legislators to
operate as " essential " during the pandemic, the sun, moon
and stars all aligned to our benefit. Our traditional customers
had money and - more importantly - time on their hands
and were looking for outdoor activities that they could enjoy
during lockdowns and our products fulfilled their needs.
And there were a whole bunch of consumers (estimated
to be about 16 million strong) who were not yet part of
our gardening " family, " many of them from the younger
generations, who shared the same needs for finding
something to invest their free time and money into, and they
decided to give our industry a try.
Despite the operational challenges we faced, including social
distancing and sanitation, the 2020 spring increases over 2019
were remarkable, with 20+% increases not uncommon.
And therein lies the problem as we planned for spring
2021. Some of us believed we had struck the mother lode
and could unrealistically maintain the same rate of increase
we experienced in 2020. Some of us took a more cautious
approach to planning, viewing 2020 as an unsustainable
anomaly and built their forecasts based on a comparison to
2019 sales.
The actual results for spring 2021 were that we ranged
from behind 2020 sales to slightly above, but considerably
favorable to 2019. Overall, I believe the final numbers will
show that we had a very solid - and profitable - season,
46 | LAWN & GARDEN RETAILER | JULY 2021
Spending Soared
As well as our industry performed in the first and early
second quarters of 2021, many other retailers who were also
operating in 2020 during the initial months of the pandemic
had strong first quarter sales in 2021. For example, Target's
Q1comp sales (stores only) were +18%, Walmart's were
+6%, Home Depot's were +29.9%, and Lowe's' were
+24.4%. Based on numbers like these, the consumer is
indeed spending, and the battle to capture their dollars
remains aggressive.
As the pandemic comes under control and mask mandates
and lockdowns are lifted, many look forward to a return to
" normalcy. " To some, this means a return to pre-pandemic
actions and behaviors. But many believe that there will be
a new normalcy - one where the consumer behaviors that
were developed and honed during the COVID-19 crisis and the
ways retailers responded to them, will be an integral part of
this new normalcy.
Innovations Abound
There were many new innovations and new ways of
conducting business that were developed and rolled out
in the past year in response to the pandemic mandates
that were eagerly embraced by the consumer. For example:
online ordering (Target digital sales were up 50% in Q1 '21,
and Walmart's online sales were up 37%), buy online
pickup in store (BOPIS), order online with home delivery,
and new technologies such as touchless/no contact
checkout. These have all enhanced the customer experience
and will be highly expected to be provided (and expanded)
in the future.
There are a number of unknowns to consider as you think
about your plans for spring 2022. God-willing, the COVID-19
pandemic will be more manageable, schools and businesses
will be open, and folks will be able to be out and about as
July 2021

Table of Contents for the Digital Edition of July 2021
