Guest blogger and well known industry consultant Neville Stein reflects on the lessons learnt from a tumultuous year ….
As we collectively approach a new year many of us our breathing a sigh of relief that we have got through what has perhaps been one of the most challenging years ever in our industry and of course, perhaps we are looking forward to a new year, hopeful that it can’t be as disruptive as this one. However, cut through the disruptive element of Covid-19 and one can see that our industry has a lot going for it. As the impact of Covid-19 began to be felt in March 2020 many growers, garden retailers and landscapers began to fear that the nationwide lockdown would result in a significant reduction in plant sales. In fact, the reverse has happened and growers and retailers of ornamental plants have been some if the winners during this worldwide pandemic.
As reported by Garden Trade News the benefits of gardening and connecting with nature have become apparent to those in lockdown resulting in huge increases in online purchases for garden goods. The demand for gardening products was initially met by retailers moving into the online space but since garden centres reopened in May the demand has remained solid. Research from the HTA suggests that the industry welcomed 3 million new gardeners, 49% of whom are under 45, whilst research from American Express indicates that Brits spent a staggering £3.7 billion on plants since lockdown. Interestingly in the past garden centres have often been the preserve of the over 50s but now, thanks to lockdown research from LV Insurance suggest that millennials are now embracing gardening spending on average £213 on their outdoor space since mid-March. It is not just garden retailers who have benefited from this boom, domestic landscapers have also seen an upsurge in demand.
Anecdotal evidence suggests that those forced to work at home have been spending more with professional landscapers in order to enhance their outdoor space, make it more useable and enjoyable. So the immediate future looks bright but how can we make sure that we can capitalise on the opportunities presented by Covid-19. Well, from a business perspective Covid-19 taught us a lot. First and foremost it is important to have strong liquidity in a business – in other words make sure that one has decent cash reserves – money that is available quickly which can be used either to shore up the business or indeed to invest in business improvements.
Secondly, businesses need to capture the spirit of innovation that was so evident during Lockdown 1.0 and ensure that this spirit remains as a core part of company culture – enabling a workforce to constantly innovate even when the times are good will improve productivity and profits – the greater the profits, the greater the cash available in the business to provide a fighting fund for those difficult times in the future.
As we reflect on the impact of Covid-19 one realises that this year has been very dynamic in the sense that there has been a significant amount of change happening in a very short period. Those businesses that do well in this type of climate are those that can make decisions quickly, have reduced the amount of bureaucracy in their businesses and know how to critically appraise and evaluate opportunities, therefore improving the decision making process and the speed of the decision making process will be a vital element as we face an uncertain future.
The future does look bright for our industry particularly if we can keep hold of all those new gardeners and of course implement the business lessons learnt during Covid-19. Here’s to a plant fuelled future.