Numbers

Jennifer Polanz

I have a love/hate relationship with numbers. Math has never been my strong suit, so I’m not sure why my college guidance counselor signed me up as a business major as a freshman. That immediately changed to journalism as soon as I saw the words micro-economics and macro-economics. I like words far better than numbers.

But numbers appeal to me in the respect that they’re like facts; they cannot be changed. Words can be twisted, but formulas and mathematical equations are static, like statues in the ever-growing and changing garden. You can’t argue with the numbers and that’s what this issue is all about.

It’s great to see a completely full greenhouse and plants flying off the benches in record numbers, which is what we were hearing a lot in the month of May from many retailers. But how do you know just how well you did? And could you do even a little better if you stayed open a little later or opened a little earlier? Or would it be in your best interest to stay closed on a day you’re normally open?

The answers are all there, in the numbers (or more specifically, in your point-of-sale system). We asked a couple of respected consultants in the industry to share with us some of the key performance indicators they use to gauge the overall health of a retail business. These KPIs can focus on specific areas of the retail space, or on overall labor, and even marketing returns. There are lots of formulas that aren’t limited to the ones we talk about, but these are a definite start.

While numbers themselves stay static, the use of statistics can be manipulated (just engage in one election cycle to see just how damaging manipulation of statistics can be). We try to cut through the white noise to get to the heart of your retail customer and the new normal in our cover story, “Busting Stereotypes.” Our colleague, Jennifer Duffield White, finds that the demographics we used to invest our marketing and advertising dollars toward no longer exist.

Speaking of those customers—by July, they are most likely winding down from peak spring numbers. That means your retail store shouldn’t look the same in July as it did in May and columnist Judy Sharpton has some great advice for making the store look full by shrinking its size.

And finally, once you’ve evaluated the health of the business, learned about your new customers and adjusted for the summer, turn to page 54 to get to dreaming about all the new varieties you could have on your benches in 2016. That’s right—it’s our annual California Spring Trials coverage, meeting in the middle with our cohorts at GrowerTalks. Enjoy!