7 Dec 2010

The French Connection by John Stanley

Garden retailing in France is controlled by a relatively small number of retailers who between them own the major share of the garden market. The key players are Botanic, Jardiland and Truffaut.

What makes these retailers special and what can retailers in other countries learn from them and the French retailer?

Many of you may think it is the way they put the product together, the French are famous for their flair as fashion leaders, but this was not the main lesson I took away for a week looking at the industry.

My journey started with the annual nursery awards dinner organized by Groupe J, the main magazine company for the gardening and pet sector. The dinner is a combination of wonderful entertainment, fine food and the awards ceremony. The awards are dominated by presentations to the Buyers.

Awards are presented to the best buyers in each category and the buyer is held in more esteem than the store owner, or that is how it seems to come across to a visitor looking at the industry.

The argument is that the key to success is based on a business having a good buyer, as stock turn and getting the right product mix is critically important.

Having seen the French industry and the industry in other countries I can see why the French put so much emphasis on the buyer. Heroic buyers can make a big difference. I talked to Brond Wagenaar,

a French garden centre consultant, concerning the awards and how they are judged. He informed me that they are judged based on the following criteria.

Technical Knowledge

Partnership approach with the supplier

Mid and long term vision of the business and the industry

Respect and commitment.

With the shift in consumer thinking, this type of award needs to be promoted in other countries as well.

HOW ARE THE FRENCH PERFORMING?

The average French garden centre generates between 1000 and 1500 Euro per square metre with an average sale per customer of around 30 Euro, except this does rise to 40 euro in the more wealthy Paris region.

Pets are part of the garden centre scene and a typical centre will donate between 25% and 30% of retail space to the pet category. The return on pets is higher than the return on gardening.

The segmentation of the market is interesting. At the higher end is Botanic, the middle market is supplied by Jardiland and Truffaut and the lower end of the market by Garden Price

Botanic

First stop was Botanic  

who promote themselves as the first alternative brand  
in garden centres. The claim comes from them leading the way in natural, eco-friendly garden products. Consumers seem to like the message and have voted the company the best garden retailers in 2007 and 2008

Their Suresnes store, overlooking the Seine just outside Paris, is the flagship store in the chain and offers some interesting new trends in garden retailing. As a consultant I often advise retailers that a lifestyle retail store has to be on one level as it is difficult to get garden customers to travel from one floor to another. This store breaks those rules and is located on three levels and it works.

The lower level is the garden department, the second level is seasonal, including a balcony of outdoor plants and the top level is the pet department. Keeping pets and balcony gardens are the key interests of the local consumers and this business does a great job in serving both.

The middle market is the Jardiland and Truffaut market. Jardiland is a 800 million euro business started 30 years ago and now has 217 stores  aiming  to be the IKEA of the garden industry in France, Spain and Italy. Truffaut, a 440 million euro business is part of the De Haize supermarket family and has 55 stores spread across France, but has a critical 50% market share of the Paris market.

The challenge for these businesses is that 25% of their business comes in 25 days.

In fact Jardiland quoted the “three” concept in their business.

The business relies on THREE months...15 March until 15 June

                                        THREE days...Friday, Saturday and Sunday

                                         THREE hours...2.00pm until 5.00pm

Scarfs and Tea Towels

A new business to me was Garden Price, operated by three ex Truffaut team members .Their aim is to own the bottom of the market. They are the place you come when you want to buy on price. They locate themselves in retail parks near a Truffaut as they realize that their customers will have to finish their shopping at a fully fledged garden centre. You go to Garden Place for a limited range based on price. The stores are a warehouse with pallets and racking as shop fixtures.

During my visit Christmas lead up was in full swing, I asked what happened in January as stock turn was clearly critical to the business.  I was told that while other garden centres moved into garden furniture which does not pick up in sales until March , they move in to tea towels and scarfs to keep female customers coming in and buying product.

The French market has moved forward in the last five years.  It is clear that some retailers have a clear vision of where they want to be in the future and are focused on getting there. They realize that the buyer is a critical player in that process and they are recognised as the retail heroes.

John Stanley is a retail business coach, speaker and author.  John films retail stores with new ideas and films great display ideas or retail trends as he travels around the world for his internet TV program.   Members of his Club can view the TV program for free and receive team training for free.  John has authored several successful marketing and retail books including the best seller “Just About Everything a Retail Manager Needs to Know”. 
John Stanley helps retailers:

·          Increase sales per square metre

·          Train staff to increase the average sale per customer

·          Better manage stock, merchandising and display to maximise potential

·          Marketing more effectively to convert more lookers into buyers

  For more information on John Stanley or how to become a Member of his Club, visit www.johnstanley.com.au or email info@johnstanley.com.au

Keep Yourself updated! Click Here to Subscribe to our News Letter and Alerts for the Horticulture & Fresh Produce Sectors In Ireland www.HortiTrends.com 

Click Here! to Promote Your Business and Grow Your Trade on Irelands Leading Business2Businesss Horticulture Directory of Supplies & Services www.HortiTrends.com

News . Horticulture B2B Directory . Advertising . Sales . Marketing . Business Development & Support. 

Expertise, Practical Know-how, Passion for the Horticulture, Fresh Produce & Lifestyle Sectors.

Address: Suite 5 . 64 Dame Street . Dublin 2 . Ireland . Location: Map

Mobile: 353 (0)87 9212044  

Email: jblair@hortitrends.com