Retail Nursery Representation

With the launch of Greenlife Industry Australia (GIA) in July 2019, a new era in industry representation was heralded in. Individual production, retail and allied nursery businesses could be direct members of GIA. It also allowed State NGI Association membership, and it is the State NGIs that provide much of the industry-based representation for retail nurseries, as this occurs at a state level.

Two years on and much has been achieved in the representation space. In particular, national and state representation has had a focus on keeping the industry open, operating and able to trade during the COVID-19 pandemic. However, the retail sector, a very important part of the greenlife supply chain, still has a fragmented approach to representation.

In the 2019/20 financial year, total greenlife sales to retail accounted for $1.366 billion, equalling approximately 52% of total ‘Nursery Gate’ sales ($2.6 billion). Despite the presence of ‘big boxes’ in the greenlife market, there is plenty of ‘room’ for retail nurseries and garden centres to operate. However, when it comes to representing, promoting, communicating and advocating on behalf of garden centres, the ‘market’ is also a busy one, with GIA, State NGIs (some with retail groups), Garden Centres Australia, Independent Garden Centres, Australian Garden Council, Local Nurseries Victoria, Plants Plus, IGC Tas, IGC SA, Grow Master Nurseries, About the Garden, Garden Inspiration Group and even Hort Innovation and their levy funded marketing programs. This may not always be to the advancement of garden centres.

Photo by Uriel Mont from Pexels

There is a level of uncertainty and challenge in the retail nursery sector being increasingly impacted by COVID-19 localised lock downs, uncertainty around what is an essential business, how best to manage ‘click and collect’, variable demand following unprecedented demand in 2020 and competition directly from larger retailers and other value chains.

Leigh Siebler is the Manager of Garden Centres of Australia (GCA), the not-for-profit national association providing their members with services specifically for retailers, and was contacted directly to comment and provide his opinions on the retail sector situation. Leigh says that there are many groups representing garden centres in Australia. “We are a very fragmented industry with many buying and marketing groups competing for members and dollars,” says Leigh, “Some of them service one state only and that makes their role relatively easy, it is servicing all of Australia that it is challenging to provide benefits.”

Leigh has been GCA Manager for close to 20 years and he is keen to see change and ensure that the specific needs of garden centres continue to be met at a national and state level. Whilst garden centres share many concerns with the broader greenlife industry, including COVID-19, water security, climate change, meeting demand trends, and developing and maintaining a productive workforce ¹ , they also have very specific needs. These needs include sales advice, marketing, merchandising and garden centre accreditation.

Despite perceptions that the big box stores are dominating the retail sector, Leigh claims that garden centres are prospering. “We do what we do well, hence the diversification with cafes and gifts, clothing and jewellery.” However, Leigh adds that GCA can only help garden centres continue this success by working in partnership with other industry associations, including GIA. The aim is to continue to maintain, manage and forge this relationship given GCA is a member of GIA and has varying levels of engagement with State NGIs and other retail groups.

Garden centres contributed to approximately one-quarter of all greenlife sales in the 2019/20 financial year. They form an essential part of the greenlife supply chain, even in these changing and somewhat challenging times. Leigh is keen to strengthen GCA’s partnership with GIA to ensure that all areas of the greenlife supply chain can benefit from programs targeting the retail sector.

(References)

ACIL Allen, Greenlife market analysis: Market commentary, March 2021, viewed 26 March 2021, https://www.greenlifeindustry.com.au/static/uploads/files/greenlife-market-analysis-report-march-2021-wfalhyovnrpl.pdf