November 2007
The Ho-Ho-Holiday season is here! By Tim Hodson

It’s only November, the Halloween season just ended, but now it is time for Christmas. Have you decorated your store yet? Do you have the Christmas CDs cued up? Is all of your holiday merchandise in place? Are you ready for the holiday rush?

According to the National Retail Federation (NRF), consumers plan to take a conservative approach to holiday shopping this year, but they do plan to spend more this year than last. The NRF’s Holiday Consumer Intentions and Actions Survey reports that U.S. consumers will spend an average of $816.69 on holiday-related shopping in 2007, about 4 percent more than in 2006. Overall, 2007 holiday sales are expected to reach $474.5 billion, the NRF reports.

And if you hadn’t already noticed, a lot of consumers started shopping for holiday gifts before Halloween. More than 40 percent of the survey respondents said they planned to start their holiday shopping before Oct. 31.

The tough news is that, because of the soft economy, shoppers will be searching for the best prices this year, which means retailers are really going to have to compete for Christmas shoppers by lowering prices, which will have an impact on profits.

But the best news for garden centers is that consumers plan to spend more on flowers and decorations. This year, shoppers will spend an average of $20.53 on flowers such as poinsettias and potted plants. In the 2006 survey, shoppers said they would spend $18.98. And they really plan to buy new decorations this year: $49.76 versus 2006’s $46.49. Other product categories that will benefit this season are candy and food at $96.49 and greeting cards and postage at $32.21.

But the most sought-after category this year, according to the survey, is gift cards and certificates! More than half of the survey respondents (53.8 percent) said they wanted to receive a gift card/certificate to their favorite store.

According to the International Council of Shopping Centers (ICSC), 30-40 percent of all holiday gift cards are redeemed in the first two weeks after Christmas. For the entire year, ICSC says the gift card market is valued at $80 billion this represents 10-15 percent of all consumer spending for the year. These are merry numbers for the holiday season.

If your garden center does not offer gift cards, don’t expect Santa to be showing up at your cash register. They are a great way to help you rack up end-of-the-year sales.

Have a Happy One!

This is the last issue for 2007, so I want to wish everyone a safe and happy holiday season. The New Year is just around the corner, so keep an eye on your mailbox for the January 2008 issue of Lawn & Garden Retailer. We have a lot of great things planned for the next 12 months to help you run your garden center.

And even though we don’t publish a December issue, we will still be sending out our e-mail newsletter, The Retail Report, to keep you up to date on all of the latest news going on in the industry. If you are not currently receiving The Retail Report, go to www.lgrmag and sign up today.