March 2022 - 30

POHMER ON...
Most Responsive to Change
A lesser-known Darwinism more clearly defines what he
believed really makes the difference in his survival of the
fittest theorem: " It is not the strongest of the species that
survives, nor the most intelligent, but the one who is most
responsive to change. "
From my interpretation of Darwin's theories, yes, physical
size and intelligence matter to survive, but the most critical
factor is the ability to adapt to change and quickly evolve.
And not only just adapt, but adapt the quickest, faster
than your competitors or predators. Stand still while your
competitors adapt and grow faster than you and you suffer
the economic consequences. Move forward and adapt just
a little faster than they do and you increase your chances of
thriving and surviving.
All these discussions about survival and extinction sound
pretty harsh, don't they? Especially since the sun, the stars
and the moon all aligned perfectly for our industry in 2021
and most of us experienced impressive results. But I'm
concerned that 2022 will be more challenging with rampant
inflation, major supply chain disruption, staffing problems,
raw material and energy shortages/higher costs, rising
housing and rent expenses and more.
With these hurdles, there's no way to sugar coat the
reality that all companies will not survive or continue to
operate at the level they have in the past. And companies
in all industries and sizes are facing the same shared
dilemmas. In the covid era, the playing field has changed
for everyone, but this also means that the playing field has
been leveled for all of us.
The challenge and opportunity for you is how quickly you
can strategically and tactically lead your business to adapt
to the current situation and the new consumer mindset
compared to how agile your competitors are. If you adapt
faster and more intelligently, you have a good chance of
thriving and surviving; if you're slower or refuse to change,
you stand a high likelihood of stagnation or decline. It's
that simple.
Adapting to the New Consumer Mentality
Retail is all about satisfying the needs of the consumer.
Many consumers were able to save significant portions of
their covid stimulus checks, but inflation is starting to eat
into these savings; and the wage increases we're seeing
aren't keeping pace with the rising inflation. As a result, the
consumer is becoming more focused on comparative value,
mentally weighing the value proposition of one possible
purchase versus another, and one retail venue versus another.
Understanding this new consumer mentality is no longer
optional; it's imperative. Understanding how what you
sell can be positioned to increase the comparative value
proposition - and how quickly and effectively you can
convey this to them - will be of paramount importance.
Selling " stuff at a price " isn't going to cut it for the
independent retailer; there will always be someone selling
a comparable product at a lower price. Rather, you need to
focus on the benefits of what you want them to buy, how
your product (and buying it at your location) can enhance
their lifestyle, make them more successful, and have a
better experience at your store and with your products.
30 | LAWN & GARDEN RETAILER | MARCH 2022
It's not just enough to say
you've changed - you've
got to communicate and
convince the consumer that
you truly have addressed
their needs.
You need to provide a compelling reason for them to walk
through your front door and, while price point is important,
it's not the sole solution for the independent retailer.
Walk the Talk
It's not just enough to say you've changed - you've got
to communicate and convince the consumer that you truly
have addressed their needs. An integrated communications
message, in store display and assortment presentation,
the experiential aspects of your store, the customer service
and sales guidance, the advertising and marketing - all
of these need to convey the same consistent message.
Remember that you are a destination shop; people don't
often show up just to browse without making a purchase.
They are there because you planted the seed with them,
either through past experiences or through your marketing
efforts. And once there, it's your sale to lose.
Financial Considerations
Watch your expenses, but don't cut back on anything
that will inhibit your ability to support your customers.
You'll need to be able to communicate your store and value
proposition to your customer, so maintain the funding for
marketing and advertising.
And cash flow is king - even more so than in more robust
spending periods. Make your inventory investment work for
you, focusing on turnover. Manage your receivables as well as
your payables. Time your expenses to cash flow to the best
of your ability. And be honest with your suppliers; if you're
having temporary cash flow problems, be up front with them.
While you're all in this together, no one likes surprises.
This year more than ever, the consumer is in the driver's
seat. As a retailer, it's your primary mission to adapt to the
challenges and changes they're experiencing, not them
adapting to you. If you don't or are slower to adapt than
your competitors, you lose and your competitor wins.
Survival goes to the one who is most responsive (and
quickest) to change. It could be a harsh and hard lesson for
those who don't heed the words of Darwin this year...
Stan Pohmer is president of Pohmer Consulting Group in
Minnetonka, Minnesota. He can be reached at spohmer@
pohmer-consulting.com or 612.605.8799.
March 2022

Table of Contents for the Digital Edition of March 2022
