Interesting article concerning Hines Nurseries at Grower Talks Magazine. Titled “The Rebirth of Hines” the article talks to Steve Thigpen, CEO of Hines Nurseries (then Hines Horticulture), and his long-time Hines colleague and friend Joe Gray. Ten years ago Grower Talks Magazine interviewed Steve about the direction of the business which at the time was rapidly growing and the first publicly traded nursery company.
Over the last 10 years the companies sales have fallen, from $423 million to $130 million. In between a bankruptcy, a change in management, and now it’s no longer publicly traded. As it tries to rebuild it’s business one thing is clear, the nursery business is splitting into two different factions. One side dominated by box stores and their suppliers, and the rest of us and our suppliers. As Joe Gray say’s, “The more data we get, the more information, the more planning we can receive, it helps us in our production and in servicing them (box stores). Personally, I think we’re getting closer, we have a better working relationship, we understand each other’s needs a lot better. I think it’s good. I think a good, healthy relationship helps us plan out our production and our business and partner better.”
The box stores and their suppliers must work more closely together. With the relationship becoming tighter it only seems logical that the independent garden center will have to search out alternative suppliers for it’s needs. The days of independents and box stores using the same vendors seems antiquated. How can the independent distinguish itself from the box stores if it is selling the same plants as the box stores?
There will always be people who favor the box stores over independents. There are also people who want to support smaller locally owned businesses and make a point of not shopping at boxes. Then there is a whole group of people who shop at both. The best bet for the smaller independent is to service the second group. I have seen an increase in the number of people who want to shop with us not just because we have what they want, but also to support the local business. I think we are entering an era where many people are becoming more conscious of the ultimate cost of loosing locally owned business. If you don’t shop there, one day they will be gone.
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Trey,
I have enjoyed your blog for sometime now and just had to throw my two cents in. I am still laughing about the Grower Talks interview with Mr. Thigpen where he revealed to us rubes, “debt can be dangerous” and our industry is weather dependent and sometimes investors don’t quite get that (I am paraphrasing but not off by much). Hines new ownership is rewarding the same man who presided over the loss of hundreds of millions of dollars in revenue in his last time at the top with another chance. Besides lost revenue, Hines previous incarnation destroyed millions of dollars of individual wealth owned by people who through mutual funds or pensions invested in the then publicly traded company. Just try running your family nursery like that. And Mr. Thigpen is back in charge. Hilarious.
Yes our industry has truly split into two camps- those willing to lend perishable inventory to huge corporations in hopes that someday a check will arrive in the mail (net of shrinkage, of course), and those of us who are committed to offering great value and exceptional service to independent businesses. The nursery where I work focuses on independents and I am optimistic about our future.
Buy local? Whenever I can I spend my money and the company’s money with family owned horticultural suppliers, restaurants, tractor dealers, truck and auto repair shops, bed and breakfasts, florists, farm stands, butchers, hardware stores ( yep the kind that smell of sawdust, have creaky hardwood floors, and sell every screw or bolt every made) you name it. Buying local is more than trendy. It is good management. When we buy local we build relationships. Ever meet Mr. Home Depot? Unlikely you ever will. These relationships can not only be fun but can help you on a Saturday night when an irrigation line blows out and your local family owned irrigation supply house owner answers his cell phone, on a Friday night when there are no good tables left at your favorite restaurant, well you get the idea. Small businesses are the past, present, and the future of this country’s economy.
Comment by Fab McG — July 26, 2010 @ 2:44 pm
A lot of suppliers of independents are worrying about their future because they see their orders from a lot of their customers decreasing and their customers going out of business. In this story on Hines, they as a supplier are working hard at getting closer to their big-box customer. In the case of independent garden centers do not hold your breath for your wholesale supplier to do the same.
In most cases independents who want their supplier to be around to provide products for them to sell must take the initiative and reach out to their suppliers and teach them about what is needed from them to make the local business competitive. Independents are not in the business of educating suppliers but what do you do if you want to sell their products?
Comment by Sid Raisch — July 27, 2010 @ 5:35 am
I am not a nursery professional but I totally empathize with the comment by Fab McG (see above). My website, SoCalNurseryPlants.com was started to encourage buying locally and not at the big box stores. I just wish I could cover every major city!
Comment by susan hirsch — July 27, 2010 @ 8:33 am
being that i am currenty caught in a career at a box store. i can honestly say that i refer people to our local nursuries all of the time. they come in looking for something not in a box store, the first place i point is to the nursery. box stores are looking at less varieties and more of the stuff that seems to move year in and year out(without payment up front?). the problem is those items are pretty basic. if there’s any independents out there reading, if you want a good lead, topiaries are a good start as well as trees. add junipers, shade items like ferns specifically. those plants will be obsolete at box stores in short time. it’s an everchanging industry, but still a passionate one.
Comment by matt — July 30, 2010 @ 8:42 pm