SMG’s primary market
Earlier, we saw that The Scotts Miracle-Gro Company is present in about 18 countries around the globe and serves customer needs from lawn and gardening to weed and pest control. Despite its presence in several countries, Scotts Miracle-Gro has high stakes in the US market. The company serves the consumer and retail market. Two-thirds of the company’s sales come from The Home Depot (HD), Lowe’s (LOW), and Walmart (WMT).
Share of net sales
The US market (FXZ) has dominated Scotts Miracle-Gro’s sales. In fiscal 2016, the net sales from the US accounted for almost 82% of the company’s total sales, while the remaining 18% came from international markets such as the United Kingdom, Australia, and Canada.
With such a big share of SMG’s sales coming from the United States alone, factors within the country impact sales significantly.
The US market appeal
Dwight Scott’s vision of lawn and gardening has primarily driven business for Scotts Miracle-Gro, especially in the United States, where there are many houses with lawns and gardens. Products related to lawns and gardens can face headwinds during bad economic conditions as the distribution of resources is based more on people’s necessities. Therefore, retail figures are a good indication of SMG’s performance. So, how much does SMG sell to its customers? Continue to the next part to find out.