Table of Contents
Overview
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- What you need to know
- Products covered in this Report
Executive Summary
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- The market
- Consumer spending +5.8% in 2016
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- Figure 1: Consumer spending on garden products, 2011-21
- Diverse market with many elements
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- Figure 2: Garden market segmentation, broad segments, 2016 (est)
- 1 million more aged 65+ between 2016-21
- Rainy days are bad for business
- Companies and brands
- Online sales of garden goods are growing
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- Figure 3: Distribution of garden products, by type of retailer, 2017 (est)
- Acquisition has driven growth of the chains
- Wyevale is the largest garden centre chain
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- Figure 4: Specialist garden centres, turnover, 2011-15
- Changes in the DIY sector will put more pressure on price
- Argos will benefit from relationship with its new owner, Sainsbury’s
- Importance of in-store restaurants and cafés
- The consumer
- 49% improved their gardens in 2016
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- Figure 5: Garden projects and improvements, March 2017
- 67% of households with a garden or outside space bought gardening goods
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- Figure 6: Purchases for the garden, March 2017
- In-store shopping is firm favourite for gardening goods
- B&Q (42%) is the most-used retailer for gardening goods
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- Figure 7: Retailers used for gardening goods, March 2017
- B&Q, Argos and the supermarkets are most-used for garden furniture/décor
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- Figure 8: Retailers used for garden furniture and décor, March 2016
- Staff knowledge and inspirational displays are key competitive factors for garden retailers
- Vital to be online
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- Figure 9: Factors influencing choice of retailer for garden products, March 2017
- Gardens are spaces for relaxing and entertaining guests
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- Figure 10: Attitudes regarding the garden, March 2017
- What we think
Issues and Insights
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- Is the shopper ready to buy more garden products online?
- The facts
- The implications
- Will value become a key marketing message in garden retailing?
- The facts
- The implications
- Restaurants are one of the most important developments a garden centre can make
- The facts
- The implications
The Market – What You Need to Know
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- Consumer spending +5.8% in 2016
- Diverse market with many elements
- Garden centres account for 31% market share
- 36% of adults agree that gardening is one of their favourite pastimes
- Rainy days are bad for business
Market Size and Forecast
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- 22% growth forecast during 2016-21
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- Figure 11: Consumer spending on garden products, 2011-21
- 17% growth at constant 2016 prices over 2016-21
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- Figure 12: Consumer spending on garden products, 2011-21
- Economic pressures can lead to more leisure time at home
- Inflation stoked by weakness of sterling
- Forecast methodology
Market Segmentation
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- Garden plants are 30% of the market
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- Figure 13: Garden market segmentation, broad segments, 2016 (est)
- Reducing dependence on the spring season
- Improving point of sale presentation
- Convenience gardening
- Grow your own benefits from healthy eating and bloke culture
- Trend to outdoor living
- Demand for garden chemicals depends on prevailing conditions
- Emerging trend for cordless and robot mowers
- Stylish garden buildings
- Encouraging birds and insects
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- Figure 14: Consumer spending on garden products, by market segment, 2013-16 (est)
Channels to Market
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- Garden centres most important sector
- Garden centres must be destination retailers for plants
- Supermarkets capitalise on seasonal impulse sales
- Price becomes a new battle ground as Bunnings replaces Homebase
- Amazon and Tesco have eyes on Argos’s market share
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- Figure 15: Distribution of garden products, by type of retailer, 2017 (est)
Market Drivers
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- 36% of all agree that gardening is one of their favourite pastimes.
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- Figure 16: Attitudes towards time at home, ‘Gardening is one of my favourite pastimes’, by age, socio-economic group and tenure, November 2016
- Rainy days deter gardeners
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- Figure 17: UK average annual rainfall, mm, 2011-16
- Online accounts for 17% of sales by value
- Gardening as therapy
- One million more people aged 65+ by 2021
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- Figure 18: Trends in the age structure of the UK population, 2011-21
- Interest in organic foods and clean eating illustrate potential for GYO
- Around 1 million allotments in the UK
- Front gardens have potential for more planting
- TV gardening inspires shoppers
Companies and Brands – What You Need to Know
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- Acquisition has driven growth of the garden chains
- Wyevale is the largest garden centre chain
- Significant investment in restaurants and expansion of ranges
- Competition in the sector intensifies
- Argos will benefit from relationship with its new owner, Sainsbury’s
- Online activity will continue to develop
- Importance of in-store restaurants and cafés
Companies and Brands
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- Concentration of the garden centre sector
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- Figure 19: Garden centre operators, turnover (excluding VAT), 2011-16
- Wyevale achieves the highest profit increase
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- Figure 20: Garden centre operators, operating profits, 2011-16
- Growth in store numbers driven by acquisition
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- Figure 21: Garden centre operators, outlet numbers, 2011-16
- Other major garden operators
- Trading online
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- Figure 22: Garden centre operators, online activity, 2017
- Importance of in-store restaurants and cafés
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- Figure 23: Garden centre operators, catering summary, 2017
- Expanding the product mix
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- Figure 24: Examples of concessions featured at garden centres, 2016
- Buying groups
Competitive Strategies
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- Bunnings begins its rollout in the UK
- Argos/Sainsbury’s
- Supermarkets intensify competition for garden goods
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- Figure 25: Waitrose garden, 2017
- Retailers eager to embrace outdoor living
- B&M now has over 100 garden centres
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- Figure 26: B&M Garden, 2017
- Rise of the value retailers
- Dobbies to become ‘The Best in Sector’
- Customers expect a multi-channel shopping journey
- Importance of the planteria
- Careful market positioning strategies
- Loyalty schemes
- Play areas at garden centres
Space Allocation Summary
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- Garden centres outdoor space allocation overview
- Low maintenance garden ideas
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- Figure 27: Wyevale Garden Centre, Harrow, Low Maintenance Garden, May 2017
- Figure 28: Garden centres estimated outdoor garden space allocation, May 2017
- Garden centres indoor space allocation overview
- New-look restaurants and cafés
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- Figure 29: Notcutts, Staines, The Kitchen restaurant, May 2017
- Houseplants a key focus for Wyevale in 2017
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- Figure 30: Garden centres estimated indoor garden space allocation, May 2017
- DIY retailers outdoor space allocation overview
- Showcasing new outdoor products
- Live gardening demonstrations
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- Figure 31: DIY retailers estimated outdoor garden space allocation, May 2017
- DIY retailers indoor space allocation overview
- Bunnings Warehouse upping the ante in the garden retail market
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- Figure 32: DIY retailers estimated indoor garden space allocation, May 2017
- Detailed space allocation
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- Figure 33: Garden products retailers estimated detailed space allocation as a percentage of total floor space, May 2017
Launch Activity and Innovation
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- Rethinking the plant pot
- Developing a plant for tiny gardens (and for fun)
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- Figure 34: ‘Ketchup and chips’ by Thompson & Morgan, 2017
- Ditching Latin names
- A watering system that can be controlled via an app
- A two-storey garden centre
- Plant hotels
Advertising and Marketing Activity
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- Advertising spend remains steady
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- Figure 35: Total above-the line, online display and direct mail advertising expenditure on garden products and retailing, 2013-16
- Multiple retailers dominate advertising
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- Figure 36: Total above-the line, online display and direct mail advertising expenditure on garden products retailing, shares, 2016
- B&Q boosted spending in 2016
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- Figure 37: Advertising garden products and retailers, 2013-16
- Campaign specifics
- B&Q’s 2017 campaign features an easy garden transformation
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- Figure 38: B&Q television advert, 2017
- Wyevale emphasises ‘your garden’
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- Figure 39: Wyevale emphasises ‘your garden’, 2016
- Television and press dominate media
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- Figure 40: Above-the line, online display and direct mail advertising expenditure on garden products retailing, by media type, 2016
- Embracing social media
- Nielsen Ad Intel coverage
The Consumer – What You Need to Know
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- 87% has a garden or outside space
- High level of engagement with garden projects
- 67% bought gardening goods in the last year
- Stores remain popular for plants and gardening sundries
- B&Q is, by far, the most used retailer for gardening
- Broader range of competitors for garden leisure goods
- People want knowledgeable staff and inspiration
- Younger people eat in the garden, older ones enjoy gardening as a pastime
Presence of Gardens, Balconies and Allotments
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- Village and suburban homes most likely to have a garden
- 13% of UK homes do not have an outside space
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- Figure 41: Presence of gardens, balconies and allotments, March 2017
- ABs most likely to have an allotment
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- Figure 42: Presence of gardens, balconies and allotments, by age and socio-economic group, March 2017
- Private renters least likely to have an outside space
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- Figure 43: Presence of gardens, balconies and allotments, by household tenure, March 2017
Garden Projects and Improvements
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- Home owners with a mortgage most active garden improvers
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- Figure 44: Garden projects and improvements, March 2017
- Wide range of different garden improvements
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- Figure 45: Garden projects and improvements, March 2017
Purchases for the Garden
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- 67% bought gardening goods in the last year
- Leisure items capture a younger audience
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- Figure 46: Purchases for the garden, March 2017
- Purchasing varies by tenure
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- Figure 47: Purchases for the garden, by tenure, March 2017
In-store or Online Shopping for Gardening Goods
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- In-store shopping is the most used channel for gardening goods (plants, tools and seeds)
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- Figure 48: In-store or online shopping for gardening goods, March 2017
Retailers Used for Gardening Goods
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- B&Q stands out as the most-used retailer
- Garden centres remain strong
- Specialist internet sales popular with older shoppers
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- Figure 49: Retailers used for gardening goods, March 2017
In-store or Online Shopping for Garden Furniture, Barbecues and Décor
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- Online is more popular for garden leisure goods than for gardening goods
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- Figure 50: In-store or online shopping for garden furniture, barbecues and décor, March 2016
Retailers Used for Garden Furniture, Barbecues and Décor
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- Competitive scene for garden leisure goods
- Value retailers are widely used
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- Figure 51: Retailers used for garden furniture and décor, March 2017
Factors Influencing Choice of Retailer for Garden Products
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- Staff knowledge is the most influential factor in where to shop
- Inspirational displays influence 31%
- Cafés attract older shoppers
- Vital to be online
- Attracting families
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- Figure 52: Factors influencing choice of retailer for garden products, March 2017
Attitudes Regarding the Garden
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- The garden has positive associations for most shoppers
- Consumers aged 65+ most likely to find gardening rewarding
- Enjoying the garden as an outdoor room
- Wealthier customers entertain in the garden
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- Figure 53: Attitudes regarding the garden, March 2017
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
Appendix – Market Size and Forecast
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- Forecast methodology
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