Garden Products Retailing - UK - June 2006

INTRODUCTION AND ABBREVIATIONS
 DEFINITIONS
 RESEARCH METHODOLOGY
 CONSUMER RESEARCH
ACORN
 ABBREVIATIONS
EXECUTIVE SUMMARY
Garden products struggles to grow
Difficult trading especially for traditional products
DIY dominance
Growth in supermarket sales
Non-specialists have strengths in key categories
No chain reaction
Garden centre enhancement
Can’t garden but will garden
More but smaller gardens
Wither the weather
Garden centre cum leisure, pet and home décor centres
Café culture
This season’s must have
Competition for leisure time
Uniqueness an asset in the ubiquitous world of the DIY store
All because…the lady loves the garden
Over 35s DIY drain
25 is a sensitive age
PREMIER INSIGHT
Shift to ‘Do It For Me’
Demystifying garden products
The garden as outdoor living space
Getting in touch with your feminine side and helping the planet
Small is beautiful
INDUSTRY ISSUES AND INSIGHTS
Things can only get better…or can they?
Not a good year for the roses
Tradition is not where it’s at
Hose pipe hassle
Doing it differently to DIY
Supermarkets expanding their offer
Weather watch
Does the garden centre really exist?
For leisure, for pleasure
Behold the gardener of the future
On the catwalk this season
Catering for the gardener
Keeping their feet on the ground
As seen on screen
The price is right?
Future challenges
RETAIL SALES
All retail sales and spending on garden products
Figure 1: All retail sales and consumer expenditure on garden products, at current prices, 2000-06
Figure 2: All retail sales and consumer expenditure on garden products, at constant 2000 prices, 2000-06
SECTOR STRUCTURE
Garden centres
Nurseries
DIY stores
Supermarkets
Other high street retailers
Industry associations
Horticultural Association Retail Trades Ltd (HART)
Other marketing organisations
Horticultural Trades Association (HTA)
The Garden Centre Association (GCA)
Garden Industry Manufacturers’ Association (GIMA)
Leisure and Outdoor Furniture Association (LOFA)
CONSUMER EXPENDITURE
Total expenditure on garden products
Figure 3: Total expenditure on garden products, 2000/01-2004/05
Figure 4: Estimated household expenditure on garden products, at current and constant 2001 prices, 2001-06
Growing stock
Garden furniture and barbecues
Garden buildings and other structures
Enhancement features and sundries
Garden equipment and tools
Garden chemicals and growing media
MARKET FACTORS
 GARDEN OWNERSHIP
Gardens and allotments
Figure 5: Proportion of adults with garden/allotment, 2002-06
Size of gardens
Figure 6: Proportion of adults with garden/allotment and size, 2002-06
Contents of the garden
Figure 7: Contents of the garden, 2002-06
 HOUSING MARKET
Housing transactions
Figure 8: Property transactions in England and Wales, 2000-04
House ownership
Figure 9: Stock of dwellings, by tenure, 2001-06
Number and size of households
Figure 10: UK households, by size, 2001-11
 POPULATION TRENDS
Age and lifestage
Figure 11: Trends and projections in UK population, by age group, 2001, 2006 and 2011
Figure 12: Expenditure on horticultural goods, plants and flowers, by age of head of household, 2003/04 and 2004/05
Figure 13: Forecast adult population trends, by lifestage group, 2001, 2006 and 2011
Growing affluence
Figure 14: Forecast adult population trends, by socio-economic group, 2001, 2006 and 2011
Figure 15: Expenditure on horticultural goods, flowers and plants, by gross income decile group, 2003/04 and 2004/05
Economic climate
Figure 16: PDI and consumer expenditure, at constant 2001 prices, 2001-11
Seasonal and climate effects
Environmental issues
Media and fashion influences
THE CONSUMER
 KEY CONSUMER FINDINGS
 PURCHASING OF GROWING STOCK AND GARDEN CHEMICALS
Figure 17: Growing stock purchases in the last 12 months, 2002-06
Figure 18: Amount spent on seeds, bulbs, plants, trees or shrubs in the last 12 months, 2002-06
Figure 19: Amount spent on fertilisers and weed killers in the last 12 months, 2002-06
 GARDEN CENTRE VISITING
Figure 20: Consumers visiting and buying from garden centres in the last 12 months, 2002-06
 GARDEN CENTRES VERSUS DIY STORES
Figure 21: Garden products purchased from garden centres or nurseries and DIY stores in the last 12 months, February 2006
Growing stock and media
Figure 22: Garden products purchased in garden centres or nurseries and DIY stores in the last 12 months – growing stock and growing media, by gender, age and socio-economic group, February 2006
Garden chemicals, tools and equipment
Figure 23: Garden products purchased in garden centres or nurseries and DIY stores in the last 12 months – garden chemicals, tools and equipment, by gender, age and socio-economic group, February 2006
Garden furniture/barbecues, pots and other items
Figure 24: Garden products purchased in garden centres or nurseries and DIY stores in the last 12 months – Garden furniture/barbecues, pots and other items, by gender, age and socio-economic group, February 2006
Purchasing of non-gardening products from garden centres
Figure 25: Purchasing of non-gardening products from garden centres or nurseries in the last 12 months, by gender, age and socio-economic group, February 2006
Specific sources of purchasing for garden products
Figure 26: Sources of purchase for any garden products in the last 12 months, February 2006
Garden centres and DIY chains
Figure 27: Sources of purchase for any garden products in the last 12 months – garden centres and DIY stores, by gender, age and socio-economic group, February 2006
Supermarkets and other sources
Figure 28: Sources of purchase for any garden products in the last 12 months – supermarkets and other sources, by gender, age and socio-economic group, February 2006
THE CONSUMER – DETAILED CONSUMER DEMOGRAPHICS
Figure 29: Garden products purchased in garden centres or nurseries and DIY stores in the last 12 months, by lifestage and Mintel’s Special Groups, February 2006
Figure 30: Garden products purchased in garden centres or nurseries and DIY stores in the last 12 months, by lifestage and Mintel’s Special Groups, February 2006
Figure 31: Garden products purchased in garden centres or nurseries and DIY stores in the last 12 months, by lifestage and Mintel’s Special Groups, February 2006
Figure 32: Garden products purchased in garden centres or nurseries and DIY stores in the last 12 months, by region and ACORN category, February 2006
Figure 33: Garden products purchased in garden centres or nurseries and DIY stores in the last 12 months, by region and ACORN category, February 2006
Figure 34: Garden products purchased in garden centres or nurseries and DIY stores in the last 12 months, by region and ACORN category, February 2006
Figure 35: Garden products purchased in garden centres or nurseries and DIY stores in the last 12 months, by media usage, commercial TV viewing and regular source of grocery shopping, February 2006
Figure 36: Garden products purchased in garden centres or nurseries and DIY stores in the last 12 months, by media usage, commercial TV viewing and regular source of grocery shopping, February 2006
Figure 37: Garden products purchased in garden centres or nurseries and DIY stores in the last 12 months, by media usage, commercial TV viewing and regular source of grocery shopping, February 2006
Figure 38: Purchasing of non-gardening products from garden centres or nurseries in the last 12 months, by lifestage and Mintel’s Special Groups, February 2006
Figure 39: Purchasing of non-gardening products from garden centres or nurseries in the last 12 months, by region and ACORN category, February 2006
Figure 40: Purchasing of non-gardening products from garden centres or nurseries in the last 12 months, by media usage, commercial TV viewing and source of regular grocery shopping, February 2006
Figure 41: Sources of purchase for any garden products in the last 12 months, by lifestage and Mintel’s Special Groups, February 2006
Figure 42: Sources of purchase for any garden products in the last 12 months, by lifestage and Mintel’s Special Groups, February 2006
Figure 43: Sources of purchase for any garden products in the last 12 months, by region and ACORN category, February 2006
Figure 44: Sources of purchase for any garden products in the last 12 months, by region and ACORN category, February 2006
Figure 45: Sources of purchase for any garden products in the last 12 months, by media usage, commercial TV viewing and source of regular grocery shopping, February 2006
Figure 46: Sources of purchase for any garden products in the last 12 months, by media usage, commercial TV viewing and source of regular grocery shopping, February 2006
CONSUMER ATTITUDES AND TYPOLOGIES
 KEY CONSUMER FINDINGS
 MAIN THEMES
 IMPORTANCE OF PRICE, RANGE AND QUALITY
Figure 47: Importance of price, range and quality when buying garden products, February 2006
Which consumers value price, range and quality?
Figure 48: Importance of price, range and quality when buying garden products, by gender, age and socio-economic group, February 2006
Figure 49: Importance of price, range and quality when buying garden products, by outlets used for buying garden products, February 2006
 BUYING BEHAVIOUR
Figure 50: Buying behaviour when buying garden products, February 2006
Buyer characteristics
Figure 51: Buying behaviour when buying garden products, by gender, age and socio-economic group, February 2006
Figure 52: Buying behaviour when buying garden products, by outlets used for buying garden products, February 2006
 ATTITUDES TO GARDENING AND BUYING ONLINE
Figure 53: Attitudes towards gardening and buying online, February 2006
Where does the interest in gardening lie?
Figure 54: Attitudes towards gardening and buying online, by gender, age and socio-economic group, February 2006
Figure 55: Attitudes towards gardening and buying online, by outlets used for buying garden products, February 2006
 WHAT WOULD ENCOURAGE MORE VISITS TO GARDEN CENTRES?
Products
Figure 56: Product ranges that would encourage more visits to garden centres, February 2006
Where do new products hold appeal?
Figure 57: What would encourage more visits to garden centres – Product ranges, by gender, age and socio-economic group, February 2006
Figure 58: What would encourage more visits to garden centres – Product ranges, by outlets used for buying garden products, February 2006
Facilities/layout
Figure 59: Facilities that would encourage more visits to garden centres, February 2006
Which consumers are influenced by more facilities?
Figure 60: What would encourage more visits to garden centres – Facilities and layout, by gender, age and socio-economic group, February 2006
Figure 61: What would encourage more visits to garden centres – Facilities and layout, by outlets used for buying garden products, February 2006
Advice/ideas
Figure 62: Advice/ideas that would encourage more visits to garden centres, February 2006
Who wants ideas/advice?
Figure 63: What would encourage more visits to garden centres – Advice and ideas, by gender, age and socio-economic group, February 2006
Figure 64: What would encourage more visits to garden centres – Advice and ideas, by outlets used for buying garden products, February 2006
Number of different products purchased
Garden centres
Figure 65: Number of products bought by consumers at garden centres, February 2006
Figure 66: Products bought at garden centres, by number of categories bought from, February 2006
Figure 67: Number of garden products bought by consumers at DIY stores, February 2006
Figure 68: Garden products bought at DIY stores, by number of categories bought from, February 2006
 IDENTIFYING TARGETS
Figure 69: Consumer typologies for garden products retailing, February 2006
Surface-gardeners (10%)
Loose gardeners (11%)
Part-time gardeners (15%)
Garden-enthusiasts (16%)
Unconcerned (47%)
Figure 70: What would encourage more visits to garden centres, by gardening typologies, February 2006
Figure 71: Purchasing habits of gardening typologies, February 2006
CONSUMER ATTITUDES AND TYPOLOGIES – DETAILED CONSUMER DEMOGRAPHICS
Figure 72: Importance of price, range and quality when buying garden products, by lifestage and Mintel’s Special Groups, February 2006
Figure 73: Importance of price, range and quality when buying garden products, by region and ACORN category, February 2006
Figure 74: Importance of price, range and quality when buying garden products, by media usage, commercial TV viewing and source of regular grocery shopping, February 2006
Figure 75: Buying behaviour when buying garden products, by lifestage and Mintel’s Special Groups, February 2006
Figure 76: Buying behaviour when buying garden products, by region and ACORN category, February 2006
Figure 77: Buying behaviour when buying garden products, by media usage, commercial TV viewing and source of regular grocery shopping, February 2006
Figure 78: Attitudes towards gardening and buying online, by lifestage and Mintel’s Special Groups, February 2006
Figure 79: Attitudes towards gardening and buying online, by region and ACORN category, February 2006
Figure 80: Attitudes towards gardening and buying online, by media usage, commercial TV viewing and source of regular grocery shopping, February 2006
Figure 81: What would encourage more visits to garden centres – Product ranges, by lifestage and Mintel’s Special Groups, February 2006
Figure 82: What would encourage more visits to garden centres – Product ranges, by region and ACORN category, February 2006
Figure 83: What would encourage more visits to garden centres – Product ranges, by media usage, commercial TV viewing and source of regular grocery shopping, February 2006
Figure 84: What would encourage more visits to garden centres – Facilities and layout, by lifestage and Mintel’s Special Groups, February 2006
Figure 85: What would encourage more visits to garden centres – Facilities and layout, by region and ACORN category, February 2006
Figure 86: What would encourage more visits to garden centres – Facilities and layout, by media usage, commercial TV viewing and source of regular grocery shopping, February 2006
Figure 87: What would encourage more visits to garden centres – Advice and ideas, by lifestage and Mintel’s Special Groups, February 2006
Figure 88: What would encourage more visits to garden centres – Advice and ideas, by region and ACORN category, February 2006
Figure 89: What would encourage more visits to garden centres – Advice and ideas, by media usage, commercial TV viewing and source of regular grocery shopping, February 2006
Figure 90: Consumer typologies, by demographic sub-group, February 2006
RETAIL MARKET SHARES
Figure 91: Retail market shares of types of outlet selling garden products, 2000-05
Figure 92: Leading garden product retailers, by number of outlets, 2002-06
Figure 93: Leading garden product retailers, by average turnover per outlet, 2004
Wyevale
Figure 94: Wyevale concession income, 2000-04
Figure 95: Wyevale, financial performance, 2001-05
Dobbies
Figure 96: Dobbies Garden Centres plc, capital investment, 2000-05
Figure 97: Dobbies Garden Centres plc, financial performance, 2001-05
Klondyke Garden Centres
Figure 98: Klondyke Group Ltd, financial performance, 2001-04
Notcutts
Figure 99: Notcutts Ltd, financial performance, 2000-04
Hillier Nurseries
Figure 100: Hillier Nurseries Group Ltd, financial performance, 2001-05
Squire’s
Figure 101: DJ Squire &Co Ltd, financial performance, 2001-05
Blooms of Bressingham
Figure 102: Blooms of Bressingham Ltd, financial performance, 2001-05
Blue Diamond
Garden & Leisure
Figure 103: Garden & Leisure Group Ltd, financial performance, 2000-04
Hurrans
Figure 104: Hurrans Garden Centres Ltd, financial performance, 2000-04
Capital Gardens
Figure 105: Capital Gardens Ltd, financial performance, 2000-04
Country Homes and Gardens
Figure 106: Country Homes and Gardens Ltd, financial performance, 2001-04
Haskins Garden Centres
Figure 107: Haskins Garden Centres Ltd, financial performance, 2001-05
Thompson’s Plant and Garden Centres
NWF Retail Ltd
Scotsdale
Hayes Garden World
 DIY SUPERSTORES
Kingfisher Group – B&Q
Figure 108: B&Q plc, financial performance, 2002-06
Homebase
Figure 109: Homebase, financial performance, 2002-06
Focus DIY
Argos
Figure 110: Argos, financial performance, 2002-06
John Lewis
Wilkinsons
Figure 111: Wilkinson Hardware Stores, financial performance, 2001-05
Robert Dyas
Figure 112: Robert Dyas, financial performance, 2001-05
Woolworths
Grocery multiples
Home shopping
THE FUTURE
Difficult period ahead
Weather ever present
DIY diminishing could affect demand
Replacement cycle
Fashion ‘must haves’ must continue
Oldies are actives, but not necessarily gardeners
..but garden interest grows
Garden centre evolution
Service opportunities persist
Environmental issues endure
Hose pipe threat
Leisure alternatives
Pension poverty
Boost from Plant for Life campaign
FORECAST
Figure 113: Forecast of the UK market for garden products, by value, 2006-11
Figure 114: Indexed development of garden products, 2006-11
Factors incorporated in the forecast