2023-03-10

2023 selling season – What are the expectations of the horticultural retail industry?

2023 selling season – What are the expectations of the horticultural retail industry?
 
Author:
Key Account

As every year before the spring season, the industry wonders what the upcoming season will be like. But venturing a forecast for 2023 is about as difficult as predicting what the weather will be like.

The signals after 2022 could hardly be more different. While some market participants only recorded slight declines in sales compared to 2021, others suffered sharp declines, in some cases almost to the level of 2019. Sales declines were generally particularly severe in the second half of the year and during the Christmas season, which does not necessarily make the outlook for the new year more optimistic. Unfortunately, in many places it has not been possible to retain the new customers acquired during Corona in the long term.

Opportunities for the small players
However, it is precisely this initial situation that can also be a great opportunity for specialist retailers, because the problem affects the entire retail sector. The more agile a company can react to the changes, the better and more successful it will be.
And here, small and medium-sized companies certainly have an advantage over the large retailers, which are much more dependent on functioning structures and supply chains. Due to higher (energy) prices, there will certainly be fewer cheap products on the market. This will have a particularly negative impact on frequency drivers in the wholesale sector.
In addition to the uncertain consumer mood, the shortage of skilled workers, especially in the green sector, is another challenge that needs to be overcome. Here, the companies that have been dealing with the topic of employee promotion and development for a longer period of time and have been able to position themselves as an attractive employer are certainly at an advantage. The greatest danger for the green industry is that there is also a great shortage of skilled workers in other professions, making it relatively easy to change industries at present.

Clear company profile
In any case, it is advantageous if the customer feels well looked after and informed at the POS and has few queries for the customer advisor. This saves time and resources in the garden center and can be achieved, for example, by clear and simple labeling of the goods presented or by consistently emphasizing the product benefits. In general, companies with a clear profile have an advantage in challenging times, as customers can also orient themselves better.

MCS actively supports you in sharpening your profile and being prepared for the challenges ahead.

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Author:
Key Account
Bernhard Schmid holds a degree in Horticultural Engineering FH and a Bachelor's degree in Marketing. He has worked in the green sector for over 20 years in various (marketing) positions. Among other things, he was the managing director of a large garden centre and headed a department for a business association. Today, clients at Media Concept Group benefit from these years of experience and he shares his knowledge on this blog.

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