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Last month I raised a flag about changing customer demographics and what that means for many in this industry. I am not suggesting a change-or-die situation. It's more a case of adapt and prosper.

It's easy to write about change, but much more difficult to successfully bring it about. Let's look at what will make walking the path a whole lot easier.

Call a truce on boundaries

Hobbyists enjoy the seeking, finding, learning and buying processes. Just take a look at the anglers perusing the fishing department at Bass Pro Shop.

But the search doesn't hold the same appeal for the rest of the population. As baby boomers lose interest and other generations shop with very different interests in mind, shopping must become much less discovery based. I think this is much easier than it sounds. In effect, it's an extension of simple cross-merchandising.

But it means that department managers must give up territory and put egos aside. This goes beyond allowing "their" products to be displayed in other areas. It means being part of a bigger picture: a team working together to make a customer's journey exciting, meaningful and quick. That will entail big changes to some people, and some buyers and managers will resist. The process has to be driven from the top by owners and managers who get it.

I am not suggesting the bulldozer arrives next week. Until we figure out the new market it would be sensible to create some modest, permanent cross-merchandising spaces. By permanent I mean displays using wood, nails and concrete, not just groupings of product like we see now.

Initially, I can see these displays around an outer racetrack, lining up with cross-path vistas and vignettes. Products and themes would change seasonally but the structures, paving and props (like a simulated spa, fire pit or deck) would remain. At first some inventory would still be in traditional locations as well in vignettes, so as not to freak out customers and staff.

As a start, and to break down pesky departmental barriers, stores could add pottery and statuary to annual and perennial tables, mix in statuary and arbors with shrub endcaps and use pavers, trellises and decorative pieces to simulate patios in outdoor living departments. Just doing this would signal a change to customers and identify team members who might need a little more persuasion to get with the program.

It's all about control

If hobbyists are in decline, I don't know why stores still carry so many choices in a single category. As shopping time per store declines, why do centers slow people down with too many competing, overlapping lines? Let customers use their precious time to build excitement about end results, not reading labels.

I believe this is a great opportunity. Too many slow-moving products have occupied valuable space for way too long in the name of selection.

Independents don't need 65 hosta varieties if the home improvement stores only have three. Cutting 65 to 15 still allows you to say, "Five times the selection of the box stores."

Inventory reduction and merchandising changes allow a garden center to become more open, easier to operate, speedier in turns, easier to stock, more profitable and a lot more modern in style. Many garden centers could lose 15-25 percent of inventory and few people would notice.

It won't work without training

Some employees and customers will be unhappy with changes and leave. Others (more than you might think) will be thrilled and energized. After all, many of these lifestyle changes mirror what's going on in their own lives.

Training to think outside departments and to relate to customers' end results, rather than the process, will be vital. Tomorrow's consumer is less interested in the "what" and "why." They're focused on the "when," the "how much" and the value it brings to their lives.

Product training must be overhauled to reflect the new reality. Departmental barriers must be smoothed so team members feel comfortable working in new areas and answering a wider range of questions.

Training should focus on listening to customers and suggesting related merchandise. Team meetings should focus on lifestyles, seasonal opportunities and new ideas seen in the media or the community. Selling will need to be consultative, rather than a benefit-telling style.

Once again, I think this is great news. Selling to hobbyists can be hard work. They can be suspicious, conservative and opinionated. The next generation doesn't want an education. They want answers so they can check items off their to-do list and go home. They want action, not collection.

Visit customers at home

Garden centers of the future will be as much a resource center as a cash-and-carry store. Part of their strength will be troubleshooting visits to customers' homes, as well as design and installation services. Web-based sales will also grow as trust develops from these home visits. Garden centers will be as much a showroom and project center as a retail facility. Again, this is great news for those with landlocked stores, inadequate parking lots and stringent zoning laws.

What will it cost?

So how much is this going to cost and how does it make money? First, there is little cash cost for staff and operational changes suggested here, and there should be a big positive cash flow resulting from inventory reduction. But, as a conservative start, I suggest that 3 percent of sales volume can go a long way toward achieving these ends, if invested in improved merchandising (benches, signage, lifestyle sets, better traffic flow), ambiance (flooring, lighting, paint, fixtures) and training.

Funding may also be available from progressive suppliers who are also wondering what the future will bring as the market changes. New elements such as diagnostic and installation services should be profit centers in their own right.

One thing to be cautious of: as hobbyists decline, buying for the next generation becomes more risky, and that will hit margins unless purchasing is controlled carefully.

If these changes successfully align the store with the customer's lifestyle, the result should be an improved gross margin (though with bigger product risk), faster turns and less maintenance labor, compared to staying as is.

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© 2006 Branch-Smith Publishing