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The total UK
Garden Products market within our definition is
currently valued at an estimated £4.8billion
in 2003 and covers 6 broad product categories. Since 1991, the
market has more than doubled illustrating the strong growth seen
within the sector.
The market has performed favourably in recent
years, buoyed by a long hot summer in 2003, which benefited
sectors such as the garden leisure market in particular, though
2004 is seeing some slowdown in activity. Gardening and garden
design has been subject to a high level of media coverage in
recent years, which has helped to increase product sales, while
the changing view of the garden now as an extension of the home
has also benefited the overall market.
The major channels for garden products are the
Garden Centres, with annual sales of around £1.2
billion at RSP, and the DIY Multiples sector with
estimated garden product sales of £1.7bn
in 2003.
The DIY Multiples have seen significant growth in
recent years and have taken increasing share from the Garden
centres to become the dominant channel in the distribution sector.
Garden product sales have seen substantial growth
through the latter part of the 1990’s and has continued up to
2003, which has stimulated growth in both the DIY multiples and
the Garden Centres as well as other channels including Catalogue
Stores and Supermarkets in certain product sectors.
Overall, DIY multiples have continued to take
share from the Garden Centres. In 1991, Garden Centres accounted
for around 33% share of the total domestic
Garden Products market, but in 2003 they are estimated to have a
share of less than 25%. In contrast to this, the share taken by
the DIY multiples has risen from 27% by value in 1991 to
approaching 40% in 2003.
Within the Garden Centre market, there has been a
shift away from high volume/low margin products to higher value
products. There has also been more emphasis placed on non- garden
products and turning a visit to the garden centre into an
"experience", with many centres now investing heavily in
facilities such as restaurants.
The catalogue and mail order channel has also seen
growth in recent years and have also seen a move away from lower
value goods to a mid to higher priced range in certain products
areas such as garden furniture and barbecues. Some catalogue
stores have also expanded their product offerings in recent years
to include a comprehensive range of garden products, including
conservatories and sheds. Product ranges from some of these type
of outlets will tend to be more seasonal.
Other channels such as supermarkets have also
increased their product ranges in the last few years, with Tesco
committing to increasing their range of non-food items
whilst some Safeway/Morrison stores
have garden centre areas within some of their retail outlets.
Within the more traditional sectors of the market,
particularly horticultural products, Garden Centres are still
strong, accounting for almost 50% by value. Garden Centres in
general are able to offer greater product knowledge for
horticultural products and are perceived to provide better
services and care & maintenance of stock than other outlets.
Garden Centres can also provide a more relaxing outlet,
particularly for the older customer, whilst product range in the
horticultural sector is generally greater than that offered by
other outlets. However, the sale of non-garden related products
are becoming increasingly more important for the Garden Centres
and in 2003 accounted for over 20% of their revenue.
DIY multiples have a relatively limited share of
the horticultural sector although have increased their product
range in recent years and are now improving service by providing
trained to staff to further aid customers. A policy by some of the
multiples to employ "older" members of staff means that,
in some cases, more knowledgeable staff are able to specialise in
certain areas. DIY multiples are also increasing their offering of
higher value products such as furniture and barbecues and have
moved up-market in recent years.
There is new competition in the horticultural
sector from Grocery Multiples, which although at present do not
present a major threat, could increase share in the future. Some
supermarkets now offer dedicated garden centre areas whilst others
now erect marquees in the store car parks to sell horticultural
products throughout the summer months.
Within the Garden Centre market, Wyevale
are the clear market leaders with a share of 16%. The market
is still fairly fragmented with over 20 companies accounting for a
further 25% of the market and the rest of the sector being made up
from other "smaller" garden centres.
The DIY multiples market has fairly recently
experienced significant change and a number of major acquisitions
has left B&Q, Focus/Wickes
and Homebase accounting for
96% of the market making it one of the most concentrated markets
in Europe.
Future prospects for the Garden Products market
are relatively optimistic with underlying growth of over 5%
predicted in many product sectors. It is, however, difficult to
make any annual forecasts for the Garden Products Market, due to
many individual sectors being affected by different weather
conditions that can either seriously restrict or bring
unprecedented levels of growth. For example, in 2004, several
garden centre chains have already revealed poor half-year results
as key trading periods have been hit by indifferent weather.
List
of Companies Mentioned
Wyevale, Country Gardens, Garden & Leisure Group,
Blooms, Jardinerie, Fosters Nurseries, Notcutts Garden Centres, Booker
Garden Centre, Mattocks Roses, Dobbies Garden Centres, Clifton Garden
Centre, Cross Lanes Farm Centre, Hillier Nurseries, Van Hage, Squires,
Klondyke Garden centres, Haskins Garden Centres, Hobbycraft Ltd,
Bridgemore Garden World, Frosts, Otter, Webbs of Wychbild, Hayes,
Scotsdale, Barton Range, Stapeley, Adrian Hall, Hurrans, Thompsons, Forest Lodge, Gordale, Aylett, Alton, Bents, Ruxley Manor,
Snowhill, Tong, Redfields, Woodcote Green, Excellance, Poddington, All in
One, Findlay Clark, Leekes, Trago Mills, Laver, Budget, Glyn Webb,
Chaplins, Decora, Woolworths, Wilkinsons, Asda, Safeway, Marks &
Spencer, Argos, Flymo, Black & Decker, McCullogh, Atco Qualcast, JCB,
Spear & Jackson, Wilkinson Sword, Stanley, Hilka, Power Devil, Great
Universal, Blooms, Owen Owen, Allders, Bentalls, Heals, Lingarden,
Moolenaar, Unwins, Winchester Growers, J Parker, OA Taylor & Sons,
Suttons, Johnsons, Mr Fothergill, Anglian Windows, Cornhill
Conservatories, Castle Conservatories, BHD, Everest, Cestrum, Bowater
Windows, Coldseal, Midland Portable Buildings, Simply Greenhouses, Halls,
Alton Green Houses, Robinsons Greenhouses, Yardmaster, Garden
Buildings Direct, Timberweb, Oasis Leisure Products, Hartman, Barlow
Tyrie, Swan Hattersley, Coleman UK, Char-Broil International, Landmann,
Sunshine Barbecues, Black Knight, MDS Barbecues & Gas, Home Fires
Barbecues, Premier Decorations, Parkcrown Products, Rowlinson Garden Products, Rectella International
Ltd, Chartan Aldred, Big K, Parlour Products, Flymo, Qualcast, Black
& Decker, JCB, Electrolux Outdoor Products, Hayter, ALKO, Honda,
Countax, Clarke International, Spear & Jackson, Wolf Garden, Darlac,
Fiskars (UK), CK Tools, Bahco Tools, Yeoman, The Scotts Company UK,
Miracle Garden Care, Vitax, Westland Horticulture Products, Gem
Gardening, Plantex, Monsanto, Clifford, Jones Timber, Wilfirs Fencing
Specialists, Bouchier Fencing, RK Timber, Richard Burbridge, AJ Smith
& Son, Snows Timbers, Tradelink Wood Products, Q Deck b
Hoppings, Micromark, Lightform UK, Fitzgerald Lighting, TopPave., Ibstock
Building Products, Lakeland Concrete Plasmor, RMC Concrete Products,
Netlon, Sentinel, LBS Group, Tennax, Harrod Horticulture, Pets at Home,
Petsmart, Pet World, Focus Do It All, Webbs of Wychbold, Notcutts.
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