Table of Contents
Executive Summary
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- The market
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- Figure 1: Forecast of total value sales of garden products (including VAT), adjusted for COVID-19, 2015-25
- Impact of COVID-19 on garden product retailing
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- Figure 2: Expected impact of COVID-19 on garden product retailing, short, medium and long-term, 2020
- Garden plants and garden care products dominate sales
- DIY retailers and garden centres are the two key channels for purchasing
- Older adults are key market
- Companies and brands
- Retail sector remains fragmented
- Competitive strategies focus on product and market development
- Innovation focused on environmental issues and use of technology
- Promotional expenditure is buoyant with digital increasingly important
- The consumer
- Majority of adults have access to a garden or outside space
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- Figure 3: Gardens and outdoor spaces, April 2020
- Garden goods are the popular items
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- Figure 4: Purchases for gardens and outside spaces (Net), April 2020
- Online is important at all stages of the buying process
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- Figure 5: In-store or online shopping, April 2020
- Retailers offering a broad range of products are well placed with consumers
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- Figure 6: Retailers used for garden products, April 2020
- Choice and quality of plants are major influencers on the choice of retailer
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- Figure 7: Factors influencing choice of retailer, April 2020
- Environmental issues are important when purchasing from retailers
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- Figure 8: Importance of factors associated with garden products, April 2020
- Gardens and outdoor spaces are viewed as having a positive impact
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- Figure 9: Attitudes towards gardens (Net), April 2020
- What we think
The Impact of COVID-19 on Garden Product Retailing
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- Short, medium and long-term impact on the sector
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- Figure 10: Expected impact of COVID-19 on garden product retailing, short, medium and long-term, 2020
- Short term
- Medium term
- Long term
- Opportunities and threats
- COVID-19 has potential to boost profile of online in the short…
- … and long-term
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- Figure 11: Pop up click and collect idea for garden centres, 2020
- Online will also drive direct-to-consumer
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- Figure 12: Lockdown gardener, home delivery, June 2020
- This shift to online is more than simply commerce-based
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- Figure 13: Patch, outdoor plant advice video tutorial, June 2020
- Smaller retailers could suffer
- Leisure time may be given a boost
- Impact on the garden products market
- 2020 will see retail sales fall back
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- Figure 14: Forecast of total value sales of garden products (including VAT), adjusted for COVID-19, 2015-25
- Global nature of COVID-19 set to impact on supply chains
- Shifts in consumer behaviour
- Initial worries about the impact of COVID-19 have moderated
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- Figure 15: People’s level of concerns about the risk of being exposed to the coronavirus, 28 February – 3 June 2020
- Impact of lockdown on spending plans easing
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- Figure 16: Spending habits (Home and garden products (eg furniture, domestic appliances etc), 26 March – 3 June 2020
- Products associated with being at home likely to benefit
- Young adults appear even more focused on environmental issues
- Impact on key consumer segments
- Older adults are a key group
- Interest of certain groups in furniture and décor provides an opportunity
- How COVID-19 will reshape garden product retailing
- Garden products may succumb to a scaling back of overall expenditure
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- Figure 17: Consumer spending on garden products (including VAT), 2008-18
- Impact on the marketing mix
- Product restrictions likely to affect choice
- Supply issues could force up prices
- Retailers face new challenge of how to communicate
- Will new methods of selling become the norm?
- Greater emphasis on service needs
- COVID-19: UK context
Issues and Insights
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- Garden furniture and décor popular with certain groups of buyers
- The facts
- The implications
- Developing online further means addressing older adults
- The facts
- The implications
- Young adults offer a number of opportunities
- The facts
- The implications
The Market – What You Need to Know
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- COVID-19 expected to have major impact on sales
- Garden care and garden plants are traditionally the leading segments
- DIY retailers and garden centres dominate purchasing
- Older adults are an important group of consumers
Market Size and Forecast
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- Recent revenue growth relatively buoyant between 2015 and 2019
- Outlook in light of COVID-19
- COVID-19 has had a dramatic impact on the garden products retail market
- 2020 set to see a major decline in sales
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- Figure 18: Forecast of total value sales of garden products (including VAT), Adjusted for COVID-19, 2015-2025
- Figure 19: UK value sales of garden products, 2015-20
Market Segmentation
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- COVID-19 expected to dramatically affect garden plant segment
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- Figure 20: Garden market segmentation, broad segments, 2019 and 2020
- Garden furniture and barbecues have performed especially well
- COVID-19 will affect some markets more than others
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- Figure 21: Garden market segmentation, by market segment, 2016-20
Channels to Market
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- A market dominated by DIY retailers and garden centres
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- Figure 22: Retailers used for garden products, April 2020
- Diversification has been key for garden centres and DIY
- Supermarkets take advantage of convenience
- Online attracts a growing following
- Other retailers looking at price when attracting buyers
- Online performing well in certain categories …
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- Figure 23: Use of online-only retailers used for garden products, by category, April 2020
- … and strongest for play equipment and power tools
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- Figure 24: Use of online-only retailers used for garden products, by product, April 2020
Market Drivers
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- Majority of adults have access to gardens and outdoor spaces
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- Figure 25: Gardens and outdoor spaces, April 2020
- Health, relaxation and wellbeing are important for many
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- Figure 26: Attitudes towards gardens (Net), April 2020
- An ageing population should benefit the market
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- Figure 27: Trends in the age structure of the UK population, 2014-24
- Wealth shouldn’t be overlooked
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- Figure 28: Which of the following have you bought for your garden and/or outside space in the last 12 months? - NET: Any bought, April 2020
- Growth in number of single person households presents a challenge
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- Figure 29: UK households, 2015 and 2019
- Television gardening programmes influence styles
- Growth in those who privately rent benefits some products over others
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- Figure 30: England housing, by tenure, 2010-18
- Consumer confidence until recently has been robust…
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- Figure 31: Consumer financial confidence, January 2015-May2020
- …although set to dip with COVID-19 seeing a fall in spending
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- Figure 32: Trends in spending on the home, January 2018-January 2020
Companies and Brands – What You Need to Know
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- Wyevale’s departure opens up the market to others
- Many retailers are offering garden products along other lines
- Innovation strongly focused on the environment and technology
- Advertising is buoyant with digital increasingly popular
Companies and Brands
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- Wyevale’s exit from the market …
- … see Dobbies moves into pole position
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- Figure 33: Garden centre retailers, turnover (excluding VAT), 2014-18
- Dobbies benefits from a strong turnover per store
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- Figure 34: Garden centre retailers, turnover, store numbers, estimated and annualised year end, 2017 and 2019
- British Garden Centres has seen the biggest expansion in stores
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- Figure 35: Garden centres, store numbers, 2014-19
Competitive Strategies
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- Acquisitions offer the chance to break away from the pack
- Re-positioning as broader retail and leisure destinations
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- Figure 36: Re-positioning into retail and leisure, 2020
- Interest in garden products continues from those outside of the sector
- Attracting a younger audience
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- Figure 37: Dobbies, Attracting a younger audience, 2020
Launch Activity and Innovation
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- Plastic free bedding plants
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- Figure 38: Earth-Friendly Bedding, 2020
- SmartPlant offers easy plant care
- Smart urban gardening
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- Figure 39: Agrove urban planting system, 2020
- Pop-up drive through sales in response to COVID-19
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- Figure 40: Pop-up click-and-collect idea for garden centres, 2020
Advertising and Marketing Activity
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- Promotional investment in garden products is buoyant
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- Figure 41: Recorded above-the-line, online display and direct mail total advertising expenditure on garden products, 2015-19
- Investment peaks in May
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- Figure 42: Recorded above-the-line, online display and direct mail total advertising expenditure on garden products, monthly share of annual expenditure, 2018 and 2019
- Garden centres dominate expenditure
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- Figure 43: Recorded above-the-line, online display and direct mail total advertising expenditure on garden products (20 largest categories), 2015-19
- Retailers dominate expenditure
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- Figure 44: Recorded above-the-line, online display and direct mail total advertising expenditure on garden products (10 leading advertisers), 2015-19
- Digital increasingly challenging TV and press advertising
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- Figure 45: recorded above-the-line, online display and direct mail total advertising expenditure on garden products, by media type, 2019
- Nielsen Ad Intel coverage
The Consumer – What You Need to Know
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- Most adults have access to gardens or outdoor space
- Plants and related goods are a popular purchase
- Online is an important channel for purchasing garden products
- DIY retailers and garden centres are the most popular channels
- Choice is the most important factor when deciding on a particular retailer
- Young adults have a strong focus on environmental benefits
- Health and wellbeing is a key benefit of a garden or outdoor space
Gardens and Outside Spaces
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- Most adults have access to a garden or outdoor space
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- Figure 46: Gardens and outdoor spaces, April 2020
- Older adults are more likely to have access to a garden or outdoor space
- City dwellers suffer from restrictions
- Income has strong links with access to outdoor space
Shopping for the Garden
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- Most adults have purchased a garden product in the last 12 months
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- Figure 47: Purchases for gardens and outside spaces (Net), April 2020
- Young adults exhibit sharp contrasts in purchasing
- Men are an important market
- Garden furniture and décor popular amongst those with a balcony
- Plants, bulbs and seeds are the most popular products purchased
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- Figure 48: Purchases for gardens and outside spaces, April 2020
- Older adults favour gardening goods
- Young men are important for added-value products
- Some products have a very focused customer base
- Allotment owners have broad interest in garden products
- Older adults are more likely to buy multiple products
In-store and Online Shopping
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- Online rivals in-store in all areas of the purchasing process
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- Figure 49: In-store or online shopping, April 2020
- In-store is popular with oldest adults
Retailers Used to Purchase Garden Products
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- DIY retailers and garden centres are the most popular channels
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- Figure 50: Retailers used for garden products, April 2020
- Young adults have no particular preferences
- Garden centres are well positioned with older adults
- Families favour general retailers
- Non-specialist retailers popular with balconies
- Garden centres are best positioned for the purchase of gardening goods
Factors Influencing Choice of Retailer
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- Plants dominate thinking when it comes to choice
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- Figure 51: Factors influencing choice of retailer, April 2020
- Plants are popular with older adults and especially older women
- Young adults attracted towards specific products and services
- Families and city dwellers want facilities that appeal to children
- Retailers offering specialist services are popular with those without a garden or outdoor space
Importance of Factors associated with Garden Products
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- Nearly four in 10 consumers want retailers to reduce packaging
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- Figure 52: Importance of factors associated with garden products, April 2020
- Young adults have strong environmental demands
- Families with young children are also an important group
- Allotment owners show strong environmental awareness…
- … while home furniture retailers score well on quality and environmental commitment
Attitudes towards Gardens and Outdoor Spaces
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- Gardens and outdoor spaces offer a number of benefits
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- Figure 53: Attitudes towards gardens (Net), April 2020
- Oldest adults want health, leisure and relaxation
- Men are looking to the future
- Furniture retailers and department stores appeal to the modern gardener
- Older women seek out relaxation and wellbeing
Appendix – Data Sources, Abbreviations and Supporting Information
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- Data sources
- Market sizing and segment performance
- Abbreviations
- Consumer research methodology
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