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
- Growth of 15% forecast between 2017-22
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- Figure 1: Consumer spending on garden products, 2012-22
- Garden plants account for 31% of spending
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- Figure 2: Garden market segmentation, broad segments, 2017 (est)
- Garden leisure goods market +16% over 2015-17
- Creating instant impact
- Companies and brands
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- Figure 3: Distribution of garden products, by type of retailer, 2018 (est)
- Fragmented garden centre sector
- Wyevale and Dobbies invest in online selling
- Destination leisure retailing
- Concessionaires help to develop new revenue streams
- Growing presence of value retailers
- Advertising spend +10.5% in 2017
- The Consumer
- 76% of homes have a garden
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- Figure 4: Presence of gardens, balconies and allotments, April 2018
- Gardening has a male bias
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- Figure 5: Participation in Gardening Activities, April 2018
- 52% of those with gardens shopped for their garden in the last year
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- Figure 6: Shopping for the garden in the last year, April 2018
- People most inclined to buy plants and gardening goods in-store
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- Figure 7: In-store or online shopping for gardening goods, April 2018
- B&Q is used by four in 10 shoppers for plants, bulbs and garden chemicals
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- Figure 8: Retailers used for gardening goods, April 2018
- 67% of shoppers bought garden tools, furniture or décor in-store
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- Figure 9: In-store or online shopping for garden tools, furniture or décor, April 2018
- Amazon ranks third as a place to buy garden tools, furniture and décor
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- Figure 10: Retailers used for garden tools, furniture or décor, April 2018
- Convenience plays a huge role in decisions about where to shop
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- Figure 11: Attitudes towards garden products retailers, April 2018
- Key themes for garden shoppers are relaxing, outdoor leisure and that gardening is a healthy lifestyle
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- Figure 12: Attitudes towards gardens, April 2018
- What we think
Issues and Insights
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- What is the outlook for shopping online for gardening goods?
- The facts
- The implications
- Which retailers will be the winners and losers in 2018?
- The facts
- The implications
- Restaurants are a significant way for garden centres to differentiate
- The facts
- The implications
The Market – What You Need to Know
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- Consumer spending on garden products up 5.6% in 2017
- Diverse market with many elements
- Garden centres and DIY stores are the largest channels to market
- 36% of all agree that gardening is one of their favourite pastimes
- Appealing to the private renter
Market Size and Forecast
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- Healthy market growth in 2017
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- Figure 13: Consumer spending on garden products, 2012-22
- 2017 growth of 1.8% after stripping out inflation
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- Figure 14: Consumer spending on garden products, 2012-22
- Forecast methodology
Market Segmentation
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- Garden plants account for 31% of spending
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- Figure 15: Garden market segmentation, broad segments, 2017 (est)
- Garden lifestyles have a huge influence on demand
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- Figure 16: Consumer spending on garden products, by market segment, 2015-17 (est)
- Reliance on the spring season has huge risks
- Enhancing retail displays
- Convenience gardening
- Grow your own has plateaued
- Trend to outdoor living
- Demand for garden chemicals depends on prevailing conditions
- Emerging trend for cordless and robot mowers
- Adding a garden room
- Encouraging birds and insects
Channels to Market
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- How online selling is developing
- Garden centres most important sector
- Garden centres should not lose sight of their core strengths
- Seasonal impulse sales important for supermarkets
- Price becomes a key marketing message as B&M expands
- Argos has better visibility as more stores open within Sainsbury’s supermarkets
- Dunelm and other general retailers address the garden market
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- Figure 17: Distribution of garden products, by type of retailer, 2018 (est)
Market Drivers
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- Smaller households show the highest growth rates
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- Figure 18: UK Households by size, 2012-22
- Gardening as a favourite pastime
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- Figure 19: Attitudes towards gardening, October 2017
- Leisure shopping – a nice place to spend time
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- Figure 20: Trends in the age structure of the UK population, 2012-22
- 2 million more people aged 55+ by 2022
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- Figure 21: Trends in the age structure of the UK population, 2012-22
- Over-55s take pleasure from gardening
- Accessible gardening for the elderly
- Today’s private renters are not into gardening
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- Figure 22: Tenure, by age group, 2018
- Interest in organic foods and clean eating illustrate potential for GYO
- Popularity of cocktails drives demand for herbs
- Over 1 million allotments in the UK
- Front gardens have potential for more planting
- TV gardeners form tie-ups with retailers
Companies and Brands – What You Need to Know
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- Wyevale and Dobbies are the largest garden centre chains
- Large variation in operating margins
- Scarcity of suitable sites means acquisition is the main route for expansion
- Wyevale and Dobbies invest in online selling
- Destination leisure retailing
- Concessionaires help to develop new revenue streams
- Addressing the value market
- Lifestyle solutions for a family garden
- Lighter and smaller equipment
- Advertising spend up 10.5% in 2017
Companies and Brands
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- Wyevale is the UK’s largest specialist garden retailer
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- Figure 23: Garden centre operators, turnover (excl VAT), 2012-17
- Large variation in operating margins
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- Figure 24: Garden centre operators, operating profit, 2012-17
- 2017 saw little expansion for the chains
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- Figure 25: Garden centre operators, store numbers, 2012-17
- Other garden centres
- Bents continues to develop its departments and catering
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- Figure 26: Bents Garden & Home, 2018
- Barton Grange Group will open a new leisure development in 2018
- Scotsdales has added local stores
- Cherry Lane adds 12th garden centre
Competitive Strategies
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- Expansion of e-commerce
- Destination leisure developments
- Restaurants are an important draw for garden centres
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- Figure 27: Millbrook Garden Centre, Restaurant with two storeys, 2018
- Choice of restaurants at a single destination
- Developing a unique identity
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- Figure 28: Dobbies, restaurant servery, 2018
- Concessionaires help to develop new revenue streams
- Satellite takeovers
- Addressing the value market
- B&Q will source plants for the UK chain
- Wesfarmers fails to get to grips with Homebase/Bunnings
Space Allocation Summary
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- Garden centres outdoor space allocation overview
- Wyevale bringing new plants to market
- New 'Notcutts Garden' display concept to inspire to local gardeners
- Dobbies tapping into the vertical gardening trend
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- Figure 29: Garden centres estimated outdoor garden space allocation, May 2018
- Garden centres indoor space allocation overview
- Notcutts new-look retail departments and eateries
- Dobbies focused on food brands not regularly found in supermarkets
- Wyevale embark on a brand new venture with Fat Face
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- Figure 30: Garden centres estimated indoor garden space allocation, May 2018
- DIY retailers outdoor space allocation overview
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- Figure 31: DIY retailers estimated outdoor garden space allocation, May 2018
- DIY retailers indoor space allocation overview
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- Figure 32: DIY retailers estimated indoor garden space allocation, May 2018
- 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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- Lifestyle solutions for a family garden
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- Figure 34: Tesco show garden, 2018
- Wyevale solves gardening problems
- IKEA shows houseplants at Chelsea
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- Figure 35: IKEA indoor plants display, 2018
- New garden chain in the south of England
- Urban vegetable farming
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- Figure 36: HydroGarden, vertical growing system, 2018
- Lighter and smaller equipment
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- Figure 37: Fiskars Light range, 2018
- Figure 38: Hozelock Pico Power Pressure Washer, 2018
Advertising and Marketing Activity
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- Advertising spend up 10.5% in 2017
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- Figure 39: Total above-the line, online display and direct mail advertising expenditure on garden products and retailing, 2014-17
- B&Q is the largest advertiser
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- Figure 40: Total above-the line, online display and direct mail advertising expenditure on garden products retailing, shares, 2017
- DIY chains dominate retail advertising
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- Figure 41: Largest above-the line, online display and direct mail advertising expenditure on retailing, 2014-17
- Campaign specifics
- B&Q’s 2017 campaign featured an easy garden transformation
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- Figure 42: B&Q television advert, 2017
- Wyevale emphasises ‘your garden’
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- Figure 43: Wyevale emphasises ‘your garden’, 2017
- Television and press dominate media
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- Figure 44: Media share, above-the line, online display and direct mail advertising expenditure on retailing, 2017
- Loyalty schemes and direct communication
- Embracing social media
- Nielsen Ad Intel coverage
The Consumer – What You Need to Know
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- 76% of homes have a garden
- 52% of those with gardens bought garden goods in 2017
- 88% bought plants and gardening goods in-store
- B&Q is used by four in 10 shoppers for plants, bulbs and garden chemicals
- 67% of shoppers bought garden tools, furniture or décor in-store
- Amazon is the third-most used retailer for garden tools, furniture and décor
- Convenience plays a huge role in decisions about where to shop
- Gardens are associated with relaxing, outdoor leisure and healthy lifestyles
- Garden centres have broad appeal
Gardens in the UK’s Homes
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- 76% of UK homes have a garden
- Over a million allotments
- 14% have no gardens or outside space
- Households with children are more likely to have gardens
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- Figure 45: Presence of gardens, balconies and allotments, April 2018
- 9% has a balcony
- No automatic link with owning a garden as people age
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- Figure 46: Presence of gardens, balconies and allotments, by age, April 2018
- Owner-occupiers most likely to have a garden
- Appeal to private renters with portable garden goods
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- Figure 47: Presence of gardens, balconies and allotments, by tenure, April 2018
Participation in Gardening Activities
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- More than 4 million garden at least once a week
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- Figure 48: Participation in Gardening Activities, April 2018
Shopping for the Garden
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- 29% of those with a garden bought plants
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- Figure 49: Shopping for the garden in the last year, April 2018
- Frequent gardeners buy more
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- Figure 50: Shopping for the garden in the last year, April 2018
- Those aged 55+ are important shoppers for plants
- 25-34s most engaged with buying tools
In-store or Online Shopping for Gardening Goods such as Garden Plants, Bulbs or Chemicals
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- 88% bought in-store
- 25-34s most inclined to buy online
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- Figure 51: In-store or online shopping for gardening goods, April 2018
Retailers Used for Gardening Goods such as Plants, Bulbs or Chemicals
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- 39% shopped at B&Q
- Garden centres are widely used
- Younger shoppers attracted to B&M
- Supermarket shoppers
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- Figure 52: Retailers used for gardening goods, April 2018
In-store or Online Shopping for Garden Tools, Furniture or Décor
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- Consumers less inclined to go shopping for tools, furniture or décor
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- Figure 53: In-store or online shopping for garden tools, furniture or décor, April 2018
Retailers Used for Garden Tools, Furniture or Décor
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- Figure 54: Retailers used for garden tools, furniture or décor, April 2018
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Attitudes Towards Garden Products Retailers
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- Convenience plays a major role in choice
- Fresh plants are a vital factor
- Who prefers value stores?
- Knowledgeable staff and specialists are important to 55-64s
- Eating out at the garden centre
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- Figure 55: Attitudes towards garden products retailers, April 2018
Attitudes Towards Gardens
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- Gardens have very positive associations
- Hard to beat relaxing in the garden
- 16-34s inclined to believe that garden centres are ‘just for confident’ gardeners
- Leisure shopping at a garden centre
- Quality matters more than price to wealthier shoppers
- People think GYO veg is healthier
- GYO could save you money
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- Figure 56: Attitudes towards gardens, April 2018
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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