Changing the Conversation

Jennifer Polanz

Modern Homesteading may be the newest addition at destination retailer Homestead Gardens in Davidsonville, Maryland, but it’s made up of products that have been around in some form for quite a while—just with a new twist (and some new tech).

The new 2,500-sq. ft. department, which launched in March, is designed to appeal to Millennials and houses everything needed to be successful with indoor gardening (think grow lights, benches, sprays, liquid nutrients, soils, etc.). Industry distributor and manufacturer Sunlight Supply provides about 80% of the product assortment, which also includes counter-top production, beekeeping, aquaponics and kid-friendly gardening. The potential for expansion continues to grow, too. The department was a beta test for a larger plan of creating a Modern Homesteading certified dealer program (see sidebar).

Getting Onboard
The idea of indoor growing is not new, but it does have some specific stereotypes (mainly focused on illegal marijuana growing) that had Homestead Gardens President & CEO Brian Riddle initially hesitant until he did more research.

“I had some reservations this may not be received in a positive way. That we could be labeled as someone promoting the wrong thing. All those stereotypes and prejudices of the indoor growing category were very real and very much a concern of mine,” Brian told me recently. “I got more familiar with it and visited some other hydro shops and indoor gardening. I went to a reseller called Fifth Season and soon realized it was entirely different than what I had envisioned. So after experiencing other retailers, I recognized this is so much more about the homesteading movement.”

Just as a side note, medicinal and small amounts of recreational marijuana are now legal in nearby Washington, D.C. However, Brian says he hasn’t heard any negative feedback about the new department related to those policy changes. “The response was extraordinary,” he says. “There was no one who threw up a flag—nothing like that. That was the beginning. It certainly has evolved and continues to evolve.” He also feels there’s enough demand for indoor growing products outside of recreational or medicinal marijuana that other destination garden centers would also have success with it.

The indoor growing and ancillary products tied in well with other newer departments at Homestead, like the animal nutrition side (specifically backyard chickens). “The relationship with the consumer interested in backyard birding is very much in touch with the indoor gardening,” he adds. “Here is another way for people to experience indoor gardening in a very scalable fashion that they can do year round.”

It’s that year-round part that also helped Brian make the decision. He’s been working with Sunlight Supply and Garden Media Group (for marketing) to create the right look, feel, product selection and support for the department. According to a report from IBISWorld, hydroponic equipment stores saw revenues of $685 million in 2015 and that number is expected to grow at a rate of 5% annually over the next five years.

It also has to do with repeat business and new customers. Millennial men are the target demographic, but ironically, the first sale in the department was made to a 78-year-old man who was buying a table-top hydroponic garden for his 80-year-old, wheelchair-bound wife so she could sit at a table and garden.

Brian and the folks at Garden Media Group feel this department could bring customers back in for an average of seven to eight times a year—significantly greater than the 2.5-time average most garden centers see now.

What Else is Involved?
Modern Homesteading has its own look in a high-traffic area of the garden center (just off the main power aisle). Because the lines are new, they wanted to set them off so customers wouldn’t be able to miss them. The traditionally open area of the greenhouse was enclosed and features rich, dark brown shelving with black trim. Because displays show how the products work, there’s also a cool illumination from the indoor grow lights that attract attention.

Two additional keys to the department are someone who’s knowledgeable about the products and education for consumers. Brian covered both by hiring indoor gardening expert Adrian Turner to manage the department and host weekly classes.

“It is technical, and in order to be successful, the product in itself will not leave the shelf without the knowledge,” Brian says of the importance of the educational component. “We have an opportunity to create a very strong relationship with the customer because we become a go-to resource for them.”

The opportunity for expansion of the department exists, too. Brian says they’re already looking at ancillary segments like wine making, home beer brewing, fermentation, cheese making and oil infusion, among others.

“It’s created an entirely different conversation,” Brian says. “It’s new and exciting and different. From a marketing standpoint and a way for Homestead to get some buzz out there, it’s created an entirely different conversation.” GP

Interested in Learning More?
At Cultivate’16, Vancouver-based Sunlight Supply will be providing more details about its Modern Homesteading certified dealer program, which includes a turn-key solution for creating an indoor growing section. “Our goal is to capture the momentum around the indoor gardening phenomenon,” says Katie Dubow, creative director at Garden Media Group. “IGCs have the opportunity to be part of a larger movement. We’re providing people the inspiration to create, the education to be successful and the tools to participate.”