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The total UK Garden Products market within
our definition is valued at an estimated £5.2billion in 2005 and
covers 6 broad product categories. Since 1991, the market has more than
doubled illustrating the strong growth within the sector
Garden product
sales experienced substantial growth through the latter part of the
1990’s and the early part of this decade, which stimulated growth across
several distribution channels, in particular the DIY multiples.
However, over the
last two years, the market has not performed as well as previously
witnessed with poor weather affecting key trading periods, in addition
to the economic climate affecting overall performance.
Overall, the DIY
multiples have continued to take share from the garden centres. In 1991,
garden centres accounted for around 33% of the total domestic
garden products market, but in 2005, this share is estimated at 22%. In
contrast to this, the share taken by the DIY multiples has risen from
27% by value in 1991 to 35% in 2005.
Within the garden
centre market, there has been a shift away from high volume/low margin
products to higher value products, while many centres are concentrating
on becoming “destination centres” where consumers can spend a day out.
In the longer term, an ageing UK population is likely to provide a key
growth area for garden centres.
The catalogue and
mail order channel has seen a move away from lower value goods to a mid
to higher priced range in certain product 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. There is an increasingly
blurred line between catalogue and internet suppliers, with some
catalogue suppliers now offering online sales and some internet
suppliers offering supplementary catalogues.
Other channels
such as supermarkets have also increased their product ranges in the
last few years, including Tesco with a greater focus on non-food
items, whilst Morrisons have garden centre areas within some of
their retail outlets. The grocery multiples stock a range of
primarily lower value garden products, although this tends to be on a
seasonal basis at present.
Within the more
traditional sectors of the market, particularly horticultural products,
garden centres are still strong, accounting for almost 40% by value.
Garden centres in general are able to offer greater product knowledge
for horticultural products and are perceived to provide better service,
and care and maintenance of stock than other outlets. Garden centres
can also provide a more relaxing outlet, particularly for the older
customer, while the 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 important for
garden centres and accounted for over 20% of their revenue in 2005.
DIY multiples have
a relatively limited share of the horticultural sector, although they
have increased their product range in recent years and are continuing to
improve service via staff training. A policy by some of the multiples
to employ “older” staff means that, in some cases, more knowledgeable
employees specialise in certain areas.
Many DIY multiples
are now focused on improving and extending existing stores, rather than
opening high numbers of new outlets, meaning they can offer an
increasingly larger and more competitive product range. DIY multiples
are also increasing their offering of higher value products such as
furniture and garden buildings.
Grocery multiples
are providing some competition with Tesco operating marquees from car
parks of around 100 of their outlets during the summer months, selling a
range of horticultural products.
Within the Garden
Centre market, Wyevale are the clear market leaders with a share
of 13%. 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 is highly concentrated with B&Q, Focus, Wickes and
Homebase accounting for over 90% of the market, making it one of
the most concentrated markets in Europe.
Future prospects
for the market are heavily dependent on the weather, although a number
of key underlying economic trends such as further interest rate rises,
the performance of the housing market and a weakening UK economy are
likely to restrict overall growth levels.
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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