Taking Measurements

Bill McCurry

Customers thought the 65-seat full-service Greenhouse Bistro was wildly successful. The tables overflowed with happy customers. More customers waited, sometimes impatiently, for a table. However, Rick vanDuyvendyk (Dutch Growers, Saskatoon, Saskatchewan) knew better than to look at table occupancy. One of his Key Performance Indicators (KPI) is dollars-generated-per-square-foot. Whether in Canadian or U.S. dollars, the yield per square foot drives Rick’s product/space allocations.

With both margin dollars and sales dollars per square foot in the unacceptable area, Rick quickly determined the average customer group was three retired people. Each bought a hot drink and split a piece of pastry three ways, enjoying the greenhouse bistro for 90 minutes or longer. During peak growing season, bistro cars jammed the parking lot. They were wonderful people, but poor customers. The café was losing money.

Rick’s daughter, Pamela, has a knack for buying fashion. Arguing her case, based on both margin dollars and sales dollars per square foot, Pamela utilized the café/bistro area for her women’s fashion display. The average male reader will assume rows of blouses and sweaters stacked up for the female shopper to buy. Instead, Pamela converted the bistro area into a much smaller lounge with free coffee. The balance housed numerous mannequin displays.

Dutch Grower’s mannequins are no longer cheap ones bought used from the thrift store. The current mannequin style is stark white with plain faces and fashionably cut hair.

Pamela won’t put out all her inventory. For most products, only one of each size is on the sales floor—and not always that. A woman wants her wardrobe to be unique, so Pamela hides her back stock. A department stocker replenishes as needed and at the end of the day, a sales report is printed and the racks replenished with what was missed.

Rick believes reporting key metrics can drive action. They’ve created a “contest” between the various departments in the store. The six profit centers are Giftware, Fashion, Trees/Shrubs, Perennials, Annuals and Nursery/Wholesale. Managers and supervisors can receive a cash incentive for hitting their goals. The entire team benefits with prizes like pizza parties or other group events. The daily and weekly percentage of targets reached is posted daily in visual form in the employee break room. Each department takes pride in beating their friendly competitors, the other departments. Rick says the public display and frequent updating of sales results drives the teams onward. He makes sure yesterday’s sales results are up first thing each morning.

Rick tracks “size of basket,” referring to the dollar value of each transaction. Dutch Growers has far higher basket values because of Pamela’s display techniques. No product is shown by itself. A blouse is on a mannequin wearing a sweater, a scarf, a purse and possibly jewelry accents. This gives the woman shopper ideas. Meanwhile, a man shopping for that important woman understands the entire outfit is the safest and best choice.

Part of the rationale for the original bistro was to offer that “retail experience” we hear so much about. Rick’s wife, Kim, purchases for the giftware department. She expanded it to include an olive oil and balsamic tasting bar, stocking over 50 kinds of olive oil and vinegars.

Rick says it’s refreshing to see how the store has changed over the last few years. The clientele is younger, attracted by the fashion items and giftware. Often women push their carts with a blouse, a sweater and some accessories along with geraniums and herbs.

“We have exposed the younger generation to green goods from a garden center. For some of these shoppers, it’s the first time they’ve seen green goods outside of a box store. They came for the fashion and leave with green goods, too. We’re truly growing the market for the independent garden center.” GP

Bill would love to hear from you with questions, comments or ideas for future columns. Please contact him at
wmccurry@mccurryassoc.com or (609) 688-1169.