Garden centers and DIY stores are closed in the Netherlands and several other countries, but garden plants are still being sold well. For several weeks now, the Dutch auction reports record turnovers, great pricing and practically no withdrawal. Where do these plants go?
We asked two insiders at Royal FloraHolland, Personal Sales Manager Henk Thielen and Productgroup specialist Nick Nieuwenhuysen. Although they cannot give a completely conclusive explanation, they mention a number of factors that give a nice picture.
Firstly, trade is really booming. "If everything opens up now, product will be very scarce", Thielen says. "Now it is pansy season and at this time, they are scarce. Many products are sold directly, it is almost impossible to get it on the open market and that is why they are very expensive on the clock. On top of that, for most products, the season is about to start, and for the majority of these bedding plants orders are already in. It is unbelievably busy and the trade obviously knows how to handle it.
At the same time, the situation is completely different from last year at exactly the same time, Nieuwenhuysen explains. "Everything and everyone panicked then, the trade came to a standstill and the auction imposed supply regulations. That is not the case now. However, the main thing is: nobody wants to miss out now. When things started running again last year from April onwards, there was a run on plants, shortages arose and some even had to turn down sales. That will not happen again."
Open end
For both, Thielen and Nieuwenhuysen, it remains a question mark. Some turnover can be generated from click and collect, but with the current measures, normal sales are still very much impaired. What is certain is that supermarkets are partly benefiting from the closure of garden centres and DIY stores, and that good business is being done online/via the webshop.
Not get too excited yet
Last but not least, a couple of important comments. First of all, the real spring has yet to begin. Only in the course of April, after Easter (which falls early this year), the bulk of the outdoor goods should be sold. In addition, the weather has to be favourable: apart from the measures that apply now and tomorrow, the sun is traditionally the decisive factor for a successful bedding plant season. Last year the Netherlands had a beautiful spring, for this year it remains to be seen of course. And finally: the supply may have gone well and a lot has ordered (ultra) early, but in the end, it is the consumer who has to buy it. Will they have the same shopping frenzy as last year?
NB. In terms of numbers, last week FloraHolland saw significantly fewer sales on the clock compared to the same week last year: -6.6% for the entire range and almost 1/3 less for garden plants. Direct sales, however, were 11.5% higher across the entire range. Click here for RFH's latest market update (in Dutch).