1. Gen X / Y: What IGCs Need to Know to Profit from the New Gardener

2. Index Methodology Debunking Myths and Establishing Facts

3. Methodology

4. Phase I: Consumer Focus Groups Focus groups were conducted at two IGCs: Good Earth Garden Market (Olney, MD) Mulhall’s Nursery (Omaha, NE) Each group consisted of 10 consumers. The consumers were split into four groups: Group 1Group 2 Good Earth - Not familiar with … - Never purchased from … - Purchased from other IGC - Not familiar with … - Never purchased from … - Limited experience with other IGCs Mulhall’s- Currently a customer of … - Familiar with … - Never purchased from …

5. Phase II: Validation Survey 400 consumers were driven to an online survey via email invitations. All respondents were required to have purchased a plant and completed a gardening / landscaping project without the help of a professional in the past 12 months. All respondents were required to own a single-family home with a yard.

6. Methodology Debunking Myths and Establishing Facts

7. True or False: The Gen X / Y consumer has low “interest” in gardening.

8. TRUE

9. Gen X / Y consumers have lower interest levels in gardening than their parents did when they were the same age. Top-Box Interest Levels in Gardening* *Top-Box represent the % of consumer selecting a 5 on a 5-point scale.

10. The good news: Gen X / Y consumers are spending the same amount of time and money as the general population on gardening activities. In comparison to a 2006 industry benchmark, both the Gen X / Y consumers are spending: - a median of $250 per year on gardening consumables. - a median of 5 hours per week on gardening and lawn maintenance activities during peak months.

11. True or False: The Gen X / Y consumer gardens for different reasons than previous generations.

12. TRUE

13. Gen X / Y consumers primarily garden for home / property beautification. % of Consumers Citing as the Primary Motivation to Garden (n=404)

14. True or False: It will be difficult to advertise to the Gen X / Y consumer using traditional marketing methods.

15. TRUE

16. Some local advertising methods will not be effective in marketing to Gen X / Y consumers. More than half of the respondents indicated that they only “occasionally use the Yellow Pages to look up phone numbers. A quarter recycle or throw the Yellow Pages away! Less than half of the respondents currently subscribe to a local newspaper.

17. While the Yellow Pages are only “occasionally” used, more than 75% of Gen X / Y consumers use the Internet to look up phone numbers.

18. 2 out of 3 Gen X / Y consumers are watching gardening-related programming on cable networks. % of Consumers Watching Television Network on a Weekly Basis (n=404)

19. Gen X / Y consumers enjoy reading magazines focusing on home and garden content. % of Female Consumers Reading Magazine on a Monthly Basis (n=203)

20. True or False: The Gen X / Y consumer hires professionals rather than completing gardening activities on their own.

21. TRUE and FALSE

22. 2 out of 3 Gen X / Y consumers are opting to complete the project themselves rather than hire a professional. % of Consumers Completing Project Without Professional Help v. % Hiring Professional (n=404)

23. Gen X / Y consumers are opting to hire professionals for the “maintenance” activities, while completing the more enjoyable tasks without professional assistance.

24. True or False: The Gen X / Y consumer grew up on Home Depot and Lowe’s, and they prefer this channel. The Gen X / Y consumer has a low affinity for local specialty retailers.

25. True or False: The Gen X / Y consumer grew up on Home Depot and Lowe’s, and they prefer this channel. The Gen X / Y consumer has a low affinity for local specialty retailers. FALSE

26. Over 60% of Gen X / Y consumers are shopping at IGCs for plants. % of Consumers Shopping Channel (n=404)

27. On median, Gen X / Y consumers are shopping for plants 6 times per year. On median, 2 trips will be to a home center and 1 trip will be to an IGC.

28. True or False: The Gen X / Y consumer does not recognize the benefits provided by an IGC.

29. FALSE

30. The frequent IGC shopper (3+ visits / year) primarily shops IGCs for plant quality and assortment. Top-Box of Factors Impacting Decision to Shop at an IGC v. Big Box Retailer *Top-Box represent the % of consumer selecting a 5 on a 5-point scale.

31. The occasional IGC shopper (1-2 visits / year) primarily shops at the IGC for the staff experience / expertise and the plant quality. Top-Box of Factors Impacting Decision to Shop at an IGC v. Big Box Retailer *Top-Box represent the % of consumer selecting a 5 on a 5-point scale.

32. The non-IGC shopper is primarily not shopping at an IGC due to the perception of higher prices and inconvenience. Top-Box of Factors Impacting Decision NOT to Shop at an IGC *Top-Box represent the % of consumer selecting a 5 on a 5-point scale. (n=149)

33. The words most frequently used to describe IGCs were consistent regardless of shopping frequency. % of Consumers Using Word to Describe IGCs

34. Myth: The Gen X / Y female consumer will be more active and profitable than their male counterpart.

35. TRUE… Not Necessarily

36. On median, Gen X / Y males are spending 3 more hours per week gardening than their female counterparts. Gender Comparison of Median Time Spent on Gardening Activities During Peak Gardening Months

37. Male and female frequent IGC shoppers are both visiting IGCs for plants 5 times per year. Gender Comparison of Median Shopping Visits to all Garden Centers and IGCs for plants

38. On median, Gen X / Y males are spending more on gardening consumables than Gen X / Y females. Gender Comparison of Median Spending on Gardening Consumables

39. True or False: The inducements needed to draw the Gen X / Y consumer will be vastly different.

40. FALSE

41. The strongest IGC shopping inducements were consistent regardless of shopping frequency. % of Consumers More Likely to Shop at IGC based on Inducement

42. Gen X / Y consumers are most interested in learning how to rely less on professionals. % of Consumers More Likely to Shop at IGC if Course Offered

43. True or False: The Gen X / Y consumer considers the IGC to only be a destination for plants.

44. TRUE, But…

45. 3 of 10 Gen X / Y consumers are likely to purchase organic fruits and vegetables from an IGC. Top-Box Likelihood to Purchase from an IGC *Top-Box represent the % of consumer selecting a 5 on a 5-point scale.

46. True or False: The Gen X / Y consumer does not grow vegetables.

47. FALSE

48. 6 out of 10 Gen X / Y consumers currently grow vegetables.

49. 3 out of 4 Gen X / Y consumers who have a vegetable garden are growing tomatoes. % of Consumers Growing Vegetable (n=234)

50. Gen X / Y vegetable gardeners are primarily motivated by personal satisfaction and taste. Consumers Motivations to Grow Vegetables (n=234)

51. The Gen X / Y consumer has interest in vegetable gardening that exceeds their current levels of experience. % of Consumers Experience v. Interest in Learning More Gen X / Y consumers want to learn more about vegetable and herb gardening. (n=404)

52. True or False: Among Gen X / Y consumers the green and organic movements can increase interest in IGCs.

53. True or False: Among Gen X / Y consumers the green and organic movements can increase interest in IGCs. TRUE, But…

54. Approximately 1 out of 10 Gen X / Y consumers will both agree that an IGC could be a “green center” and be “very likely” to shop for organic products at an IGC. Top-Box % of Consumers *Top-Box represent the % of consumer selecting a 5 on a 5-point scale. (n=404)

55. Nearly 3 out of 4 Gen X / Y consumers are occasionally purchasing organic foods. Frequency of Purchase (n=404)

56. True or False: Targeting Gen X / Y consumers will be difficult.

57. True or False: Targeting Gen X / Y consumers will be difficult. FALSE

58. A new home purchase was cited by the most Gen X / Y consumers as a stimulus to increased gardening activity. % of Consumers Citing as Impetus for Higher Interest in Gardening (n=404)

59. The good news... % Growth in Age Cohorts by Decade Source: United States Census Bureau