November/December 2022 - 30

POHMER ON...
on more limited assortments of private label, house brand or
controlled label products. And most of the items they carry
are considered " commodities " - products that have wide
availability, typically with lower margins, with little (or no)
consumer-perceived difference in taste or quality.
When there's no discernable taste or quality difference
between the national branded box of corn flakes (Kellogg's)
in a traditional supermarket and the Aldi's private label brand
(Millville) - and with Aldi's price being 40% lower than the
traditional supermarket's national brand - it's no surprise
that more consumers are shopping at the low-price retailers
like Aldi. And these low-price retailers are taking away some
of the differentiation-defining high-service advantages
previously offered solely by the traditional supermarkets by
now offering buy online, pick up in store and third-party home
delivery services, while still maintaining their low prices. (Full
disclosure: My family regularly shops both a high-service/
high-priced traditional supermarket, Lunds & Byerlys, and
Aldi, and we've been shopping at Aldi more and Lunds &
Byerlys less as inflation rages.) But as we shift our shopping
trips more toward Aldi, we still shop Lunds & Byerlys because
they offer services and food offerings not available at Aldi,
such as a deli, prepared foods, a sushi bar and full-service
meat/seafood departments, in addition to having an in-house
post office.
Your Branding Matters
So, what are the morals of my discussion about grocery
and produce, and how does it apply to your garden center
operation? First, consumer behaviors are changing - and
quickly, driven by the reduced spending power resulting
from rampant and persistent inflation and higher interest
rates affecting almost every aspect of their lives. Second,
consumers will seek out the lowest price on commodity
products, even changing their traditional shopping venues
to get the best deals. And third, consumers will trade up
to retailers and for products that offer innovation, higher
perceived quality, broader and more appealing full-service
assortments, higher service offerings, expertise and better
experiences.
Yes, your garden center will have to carry the same
commodities everyone else in your marketplace carries
to be competitive; it's the cost of entry to play the retail
garden game. But your operating cost structure will, most
likely, prevent you from being the price leader in your
market. Unless you can convince the consumer before they
come into your store to visually see the quality difference
demonstrating that you offer discernibly superior quality to
justify a higher retail price than your market competitors,
that consumer will likely opt to purchase from the lowerpriced
operator.
Your challenge is to let the consumer know that you
offer the commodities, but emphasize the message that
you have the things the low-cost provider doesn't or can't
provide - things that will enhance their satisfaction and
enjoyment with the products they purchase from you,
things like your breadth of assortment, the expertise
you offer, the services you can provide, the ideas and
inspiration you convey, and the fantastic experiences
customers will encounter.
There's a trend toward reducing the number of shopping
trips the consumer makes, with more focus on one-stop
shopping, and you have the opportunity to plead your
case as the provider who can deliver this benefit to the
consumer in your market.
Now is the time to hone your brand image and brand
message to better communicate the benefits you offer
your customers that address their challenged spending
limitations - benefits that can also aid your top and
bottom lines at the same time. Remember, your brand
message not only communicates who you are to the
consumer, but also what you do that benefits them - a
message of why they should think of you first and shop
your store, why they should spend their fewer discretionary
dollars with you, rather than the guy down the street with
lower prices on commodities.
Commodities will play a significant role in your sales
success this season, but you have so much more to
offer the customer - things that transcend price alone.
Your brand image and brand message are integral in
communicating these differences to the consumers in your
marketplace; it's time to re-think, reassess and fine-tune
the essence of your brand to better address the changes
impacting your customers' lives!
Don't let commodities ruin your season ...
Stan Pohmer is president of Pohmer Consulting Group in
Minnetonka, Minnesota. He can be reached at spohmer@pohmerconsulting.com
or 612.605.8799.
30 | LAWN & GARDEN RETAILER | NOVEMBER/DECEMBER 2022
http://www.consulting.com
November/December 2022

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