The safety of employees and customers was the priority at Colorado Nursery & Greenhouse Association (CNGA) member companies this spring, as they faced the uncertainty of the pandemic and related government health orders. More than ever, maintaining a healthy, safe work environment was at the top of people’s minds.
Greenhouses, nurseries and garden centers adopted new procedures and installed new features in their facilities to ensure employees and customers could interact safely. Much of it was more labor intensive than usual, during an already busy season. A lot more communication occurred over phone and email to arrange for social distancing during curbside shopping and plant drop off and pick up. Suddenly, IT (information technology) staff were even more important than ever, as they helped set up people to work remotely on site and even from home.
Fortunately, the impacts on finances appeared to be minimal. Leaders at two wholesale and two retail businesses shared how their sales stayed steady and what their plans are for continued success in the upcoming months.
Report from Bailey Nurseries, St. Paul, Minnesota
Report from Eagle Crest Nursery, El Jebel, Colo.
Report from Little Valley Wholesale Nursery, Brighton, Colo.
Report from an Independent Garden Center in Loveland, Colo.
Editor’s note: Interviews for NewsLeaf articles happen four to six weeks before they are published online, so the comments in this article were made in late April and early May.
Report from Bailey Nurseries, St. Paul, Minnesota
President, Bailey Nurseries
Does it appear that your business will have excess inventory?
We were managing our planting schedules diligently before the COVID-19 pandemic transpired, so we feel good about our inventory being in line with the needs of our customers. One never manages inventory perfectly, but we do not expect considerable surpluses in our bareroot or container product availability. Our coolers are running through June and shipping has been on schedule.
What if social distancing public health orders continue through June?
The public health orders, which vary state-by-state, may be leaving people feeling cooped up at home, but it hasn’t seemed to shut off the demand for plants. With more time at home, people can focus on long-term projects that did not fit into their schedules in the past. With the time barrier eliminated, we are seeing tremendous opportunity for our industry to position ourselves to help people add joy and beauty to their personal surroundings.
At this time, we are not changing how we view our inventory since a good percentage of that material was ordered in advance. Certainly, the economy plays a significant role in the amount of discretionary income so it’s not all without some challenges. At the present time, though, companies selling plants – especially shrubs, trees and perennials – are poised for success with homeowners and landscape installation.
What are you doing to make sure you sell as much as planned?
Our success comes from our customers’ success. We’ve been in close contact with our customers through our sales and management teams so we can react and respond to their needs. Generally, the reports we hear from our customers are very positive, especially now that most states have clarity about how and when retail and landscape businesses can operate.
We believe strongly in the power of partnership, and our marketing team has put together many resources such as messaging graphics to help retailers promote online shops, delivery and curbside service. Our website is full of images and content that retailers can use for their own signage, social media and online storefronts. And, we just launched three new consumer websites for our three brands: Endless Summer®, First Editions®, and Easy Elegance®. These sites provide great online product experiences where we direct consumers to the retailers that sell those items.
Which type of customer has decreased purchases, if any?
Honestly, that’s not a situation we are seeing, nor are we anticipating major cancellations with any customer channels. Growers know how important it is to maintain planting schedules and we are no different. We have learned in our history that an overreaction in the short term will only perpetuate long-term problems.
We know some operators are struggling, while others are doing quite well. If there is any region where we are hearing of challenges, it is parts of the East Coast where the pandemic has had the most impact. Fortunately, we have heard many reports from retailers who are having their strongest April ever, likely due to the pent-up demand from consumers confined at home. I talked with one customer just the other day and they expect that June will also be strong and are already booked out until July. All of that is positive news we hope continues for everyone.
How will what is happening now impact what you do in June and July?
We will need to cross that bridge when we get there. For all of us, the coronavirus situation has been a fluid one. We are focused on keeping our employees and customers safe and successful. The way we manage our businesses has needed to shift day-to-day, but overall, I believe that we are operating as safely as we can, and listening to our people and leaders daily.
What are your plans for June and July?
We have suspended all in-person customer events indefinitely all at all facilities, which is disappointing because of how much we enjoy interacting with everyone. We will maintain those connections virtually until we can all be together again safely.
Any final thoughts about spring 2020 and the COVID-19 pandemic?
In our 115 years, we have seen recessions, depressions, recessions, pandemics, wars, booms, and more. I’ve been really inspired, again, by our industry’s ability to show ingenuity when it mattered most. We are all operating differently than before, but I think it can be for the better in the long run. Look at the role technology is having today with retailers selling online, conducting meetings over video conference, and having the ability to serve their customers through social media and touchless retail. We have been through hard times before, and we will get through this one, together.
Report from Eagle Crest Nursery, El Jebel, Colo.
General Manager, Eagle Crest Nursery
Does it appear that your business will have excess inventory?
Eagle Crest orders the majority of both plants and hardgoods in the fall, previous to the upcoming spring, to ensure reserving the material we anticipate needing and take advantage of show specials and terms. We could not anticipate what is occurring this spring.
We have been adjusting incoming purchases where we could, but most of the gifts and hardgoods were delivered in January and February so we could stage the store ahead of the busy spring. We also wanted to honor our order commitments to growers with whom we have developed relationships with over the years.
We have had very strong sales this year, and the good weather in May helped. The biggest category to take a hit will be gifts. It was hard to display all the fun, new items in the store and then not allow anyone inside to see them. Impulse sales of these items is key. I don’t think we will sell the cute Easter items until next year.
What if social distancing public health orders continue through June?
As of May 1, the ‘safer-at-home’ order is in place here in Eagle County, and we are opening our doors for the first time (with lots of restrictions in place). Typically our biggest selling months are May through mid-July. We are used to seeing lines at the registers waiting to check out, but are not sure even with our many safety measures whether the usual crowds will appear. We are hopeful, since gardening is great therapy and we are seeing customers appreciating that more than ever.
How are you making sure you sell as much as planned?
Marketing is changing some. We are not holding our usual spring events and seminars to attract customers since it is difficult to practice social distancing with these crowds. We increased marketing in the digital version of local newspapers since readership has shifted to more digital than physical papers. We are focusing more on social media communication, and emphasizing the power of gardening to maintain physical and mental health during this stressful time.
So far, we are maintaining our pricing as much as possible. This is not the time to increase pricing but we are not slashing prices either. Fall sales may be bigger in response to excess inventory.
Which type of customer has decreased purchases, if any?
Over half of Eagle Crest’s sales come from our professional rewholesale clients. We are in a part of the state with few wholesale growers, so we service many landscapers. Losing these customers would have a huge impact on our business. We have heard that their jobs are mostly going as planned. They serve many second homeowners in the Aspen area who still want to add color to their landscapes to enjoy when and if they can spend time here. Construction projects are starting to be allowed, too.
How will what is happening now impact what you do in June and July?
So far this season, we have seen renewed interest in growing food. Customers have not been able to find what they want in grocery stores. A new version of victory gardening is forming. Keeping seeds in stock has been a challenge, and sales of soil amendments have increased dramatically. Getting information to these new gardeners is a focus for summer so that they stay interested. Keeping edible plants in stock will also be important.
Have your plans for June and July changed?
In the mountains, our busiest month is always June. A late start to the gardening season is our norm. Our hope is that as time passes the impact of COVID-19 will diminish and gardeners will want to surround themselves with natural beauty. Although we are in a tourist area, our customers are primarily locals and we anticipate that staycations will be popular with traveling becoming less available or desired. We will focus our marketing on making the home space beautiful and comfortable, and growing your own food.
Any final thoughts about spring 2020 and the COVID-19 pandemic?
We have all seen an uptick in vegetable and herb gardening, which makes us happy. We are benefitting from everyone’s desire to have good, healthy food available. Maintaining these new gardeners’ enthusiasm by helping them be successful may be our best opportunity to come from this situation: new happy gardeners…future sales.
Report from Little Valley Wholesale Nursery, Brighton, Colo.
Does it appear that your business will have excess inventory?
No, thankfully at this point, we haven’t seen a downturn in business. I try to keep pretty tight numbers on inventory levels to begin with but the planning of future inventory needs will be a critical issue as we begin to make decisions for next year. We are holding our inventory numbers from last year as our sale numbers suggest that we don’t need to make any drastic changes.
What if social distancing public health orders continue?
We’ll be able to answer this question better in the fall. For now, we will modify our week to week purchases depending on what the demand is. For B & B trees, container shrubs and perennials, we will modify the numbers accordingly for next spring. Overall, a lot will depend on the public’s response and reaction to our current events.
What are you doing to make sure you sell as much as planned?
I feel pretty confident about our direction for 2020, at this point. Our operations are running like a typical spring. Pickups and deliveries are consistent with other spring seasons. Because the pandemic happened right in the middle of the shipping and planting season, we decided not to make any drastic changes. Currently, product demand is in line with projections for this year so I don’t see any need to change pricing.
Which type of customer has decreased orders the most?
We are seeing some of the local governments choosing not to hire their seasonal or part-time workforces, so we did expect a handful of cancellations on those orders. Also, volunteer plantings for Earth Day and similar events were not able to bring people together this spring but are trying to plan events for this fall instead. At this point, these changes have had little impact on our overall sales.
Commercial and landscape customers are working and were busy as usual through April. It appears there is plenty of work in the “pipeline” but is hard to say what that may end up looking like as the year progresses.
What are your plans for this June and July?
We are planning on operating as usual, but being ready to adapt if needed. As far as marketing, I believe this is a great opportunity for our customers to reach out to their customer base and to share the long-term benefits of landscaping their outdoor spaces. The message that needs go out is: “There has never been a better time to get involved in making upgrades to your outdoor landscape because there is nothing better than being outdoors in Colorado!”
Wilmore Nursery
Wilmore Nursery
How will what is happening now impact what you do in June and July?
In this business, it’s always about being prepared for the unprepared. Things do change and they will change. Nobody knew the coronavirus was going to be the trigger, but things were on a trajectory to change anyway.
I don’t feel there will be any dramatic changes for June and July but for our business we need to look further ahead. I’ve been making adjustments to our field production numbers since the beginning of 2017, as those crops rotations occur over a four to five-year time period. It’s counterintuitive to plant less when times are good, and plant more in bad times, but you have to plan for that.
Any final thoughts about spring 2020 and the COVID-19 pandemic?
I can only speculate on what I’m hoping will materialize, as a lot will depend on consumer confidence and habits but we are working towards selling what we have projected for this year and hopefully, we will all be surprised it worked out better than we thought.
The operations that make it through these uncertain times are the ones who stay positive and figure out a way forward. Winston Churchill once said, “Success is not final, failure is not fatal, it is the courage to continue that counts.” Right now, landscaping businesses have the public’s attention because they are at home more and because of that, we can continue to play an important role in offering our customers real tangible solutions in making outdoor home environments more enjoyable and sustainable for today and the future.
Report from Loveland Garden Center, Loveland, Colo.
Does it appear that your business will have excess inventory?
That’s a difficult question. Who knows? We expect sales to maintain or exceed projections. We have a whole bunch of new residential growth in our area, so sales should be increased. People have a lot more time at home and they want to improve their quality of life. They need green plants as therapy. Why stay inside watching the clock tick, when you could be out in your yard getting your hands dirty? We may be restricted with the number of customers, but each sale will be larger to accommodate people’s new-found time for landscaping.
What if social distancing public health orders continue through June?
We’ll just have to use different ways to get customers in and out of the store to ensure social distancing. We have a system for everything that ensures everybody’s safety. People have to be comfortable that they are not going to be subject to any danger by shopping in our store.
We have already updated our signage. For example, the tomatoes were all listed on a board that described all of the varieties and characteristics. The print was small so only one person at a time could read it. We made new signs with bigger fonts so customers can read from a distance, and more than one sign so more people can read at one time.
What are you doing to make sure you sell as much as planned?
We expect that no matter what we do, we will be limited by the number of customers that can come into the store. It would be a waste of money to do extra advertising for Mother’s Day because we are already at capacity with the number of customers coming in. We are not discounting anything. Quality is what people want. We get a premium price for our plants because we only offer our best.
Which type of customer has decreased purchases, if any?
Honestly, we are not seeing decreases. We had a huge run on veggies, so we upped our quantity of production to meet the increased demand that we saw in the first six weeks of sales.
How will what is happening now impact what you do in June and July?
The sales window might be extended out into June because of how many people can be in the store at one time. I think it will be a later season, so we are controlling the night temperatures of our crops to slow them down. We grow everything in more than 50,000 square feet of greenhouses, so we are putting the brakes on crops to make them available all the way through Memorial Day and beyond.
Have your plans for June and July changed?
No changes are planned in employee hours or numbers. We had already made changes so only two people work in a building at a time, and production is spread out so we have minimal contact with each other.
We expect sales to be bigger in June, almost as big as May, though June sales are typically three-quarters or one-half of May. We may be buying stuff in June because we sold out of what we grew. We’ll just make adjustments as we need to.
Any final thoughts about spring 2020 and the COVID-19 pandemic?
It’s going to be a weird year. We’ll definitely look back on it when it’s over, and say, “Wow, thank goodness.” Until then, customers are lingering among the plants for a long time. They always do. No matter what is happening outside, it’s beautiful in the greenhouse. A lot of customers just want to get a green fix, not necessarily buy stuff, but you know they are getting ideas and will come back and buy later.
