Minimizing Shrink in an Uncertain Economy
Increasing profitability is the key to success for any type of business, but it’s especially important in a seasonal and increasingly unpredictable industry like ours. And, as we look for ways to improve our bottom line, minimizing shrink can significantly reduce our costs and improve efficiency. Because our inventory is alive, we will never be able to eliminate shrink completely, especially since it occurs along every step of the supply chain. However, through careful planning and by implementing proper cultural practices, there are many measures we can take to improve sell-through and cut down on losses.
While we’re all familiar with the phrase “shrinking violet”, those of us in the green industry know that many types of plants, in addition to those in the genus Viola, are prone to shrinking. Of course, there are a few benefits to shrinking plants: they take up less space on racks and retail benches, they’re lighter and easier to transport, they are perfect for small landscapes, and they require less input costs when it comes to things like soil and fertilizer. But the phenomenon of shrinking plants also creates many challenges. For example, sourcing tiny pots and plant tags has become nearly impossible in recent years. Water management is also significantly more difficult when it comes to extremely small plants. And, let’s face it, plant shrinkage confuses our customers, especially at a time when consumers want the most bang for their buck.
Perhaps the most important step that growers can take when it comes to reducing shrink is to carefully manage our usage of plant growth regulators, or PGRs. Miscalculating the concentration of PGRs was recently found to be the leading cause of shrinking plants in the United States. Shade cloth is another factor that can contribute to shrinkage. While many types of Heuchera, especially those with yellow and chartreuse foliage, are less likely to burn when grown under high-density shade cloth, some varieties of Astilbe, and even Hostas, will begin to shrink if the fabric is rated higher than 55%. Finally, extremely cold winter temperatures have been linked to shrink in certain warm season grasses.
All of this is not to say that demand doesn’t exist for small, tiny, or even teeny plants in certain landscapes and markets. And I’ll be the first to admit that, when it comes to planting in my own garden, I would much prefer to dig a small hole. But we also need diversity of sizes in the landscape. If we are going to have the knowledge and resources required to control unplanned shrinking, then it’s clear that more research is needed on this topic. In the meantime, we look forward to sharing our thoughts on an equally troubling topic with you next week: plantflation. Until then, we wish you all the best this spring and hope you have a very silly April Fools’ Day!
