Report: Garden Products Retailing - UK

Issues in the Market
Key themes
Definitions
Abbreviations
Market in Brief
Challenging performance
Weather and seasonality
Mixed picture
Changing hands
Garden centres' appeal endures
Green revolution
More gardens should be an opportunity
Garden products and a strong supporting cast
Challenge of striking a good balance
Investment in buildings
Powerful pensioners
Young pretenders
Product confusion
Media cool
The future' s bright, the future' s green
Industry Insights
Key points
Bloom or doom?
Growing importance of a supporting cast of extras
Grow your own on the up or over-inflated?
Getting them young
Green-fingered gardening has a new meaning
Enter the big guns
Building leisure appeal
Celebrity attraction
Gardening is about lifestyle
Netting more sales
Future growth
Internal Market Environment
Key points
Weather a perennial issue
Garden products and beyond
Alluring allotments
Garden ownership
- Figure 1: Proportion of adults with garden/allotment, 2003-07
- Figure 2: Proportion of adults with garden/allotment and size, 2003-07
Growing habits
- Figure 3: Contents of the garden, 2003-07
The new modern gardener
Gardening hits the streets
Green garden habits
Growing things online
Changing the law
Investment in buildings
Broader Market Environment
Key points
The great 2007 divide
- Figure 4: PDI and consumer expenditure, at current and constant 2003 prices, 2003-13
- Figure 5: GfK NOP consumer confidence index: 12 months August 2007-August 2008
Demographic factors
Ageing population a real boost
- Figure 6: Trends and projections in UK population (' 000s), by age group, 2003-13
Rising long-term affluence
- Figure 7: Population, by socio-economic group, 2003-13
Housing market undermining confidence levels
- Figure 8: Annual average house prices, 2003-13
Housing equity withdrawal
More smaller households
- Figure 9: UK households as a percentage of the popualtion, 2003-13
Weather, climate and seasonality
Market in Context
Key points
Considered expenditure
- Figure 10: Changing shares of main categories of spend, at current prices, 1997 and 2007
- Figure 11: Changing shares of individual categories of spend, at current prices, 1997 and 2007
- Figure 12: Top ten expenditure priorities, 2007 and 2008
Competitive areas of spend
- Figure 13: Estimated household spend on other areas versus garden products, 2002-07
Strengths and Weaknesses in the Market
Strengths
Weaknesses
Market Size and Forecast
Key points
Disappointing developments
- Figure 14: Estimated household spend on garden products, 2003-13
Current performance
Slow growth at real prices due to delayed spending plans
Statistical projections -- a best estimate
The future
Factors used in the forecast
Segment Trends
Key points
Growing stock
Garden furniture and barbecues
Garden buildings and other structures
Enhancement features and sundries
Garden equipment and tools
Garden chemicals and growing media
Where They Shop and What They Buy
Key points
Purchasing trends and visits to garden centres
Growing stock purchases
- Figure 15: Growing stock purchases in the last 12 months, 2003-07
- Figure 16: Amount spent on seeds, bulbs, plants, trees or shrubs in the last 12 months, 2003-07
- Figure 17: Amount spent on fertilisers and weedkillers in the last 12 months, 2003-07
Visits to garden centres
- Figure 18: Consumers visiting and buying from garden centres in the last 12 months, 2003-07
Purchases from garden centres
Gardens still central
- Figure 19: Products purchased from a specialist garden centre or nursery in the last 12 months, 2004-08
Changes over time
Women like the finer things
Pots make purchases with the young
Not all things for all men and women
Empty nest but a full patio
Cafe society
Practical applications
Purchases from DIY stores
Plants plus practical purchases
- Figure 20: Garden products purchased from a DIY store in the last 12 months, 2006 and 2008
Changes over time
Starters but not finishers
Branded price appeal
It' s a family affair
All outlets used for buying garden products
DIY stands out
- Figure 21: Outlets used for garden products in the last 12 months, 2006 and 2008
Supermarket creep
Is Wyevale missing out on the ladies?
Dobbies dominates in Scotland, but can this be replicated?
The young are DIY gardeners
Supermarkets may win price battles
Time to decide
Number of outlets used
No promiscuity in the mixed beds
- Figure 22: Numbers of outlets where garden products purchased, June 2008
B&Q attracts more loyalists
- Figure 23: Outlets, by degree of loyalty, June 2008
Channels of Distribution
Key points
Market shares
- Figure 32: Retail market shares of types of outlet selling garden products, 2002-07
Retailer Competitor Analysis
Key points
Retailer comparison
Figure 33: Leading specialist retailers and DIY chains compared, 2008
Retailer Profiles
Key points
Outlet numbers
- Figure 34: Leading garden products retailers, by number of outlets, 2004-08
Wyevale
Strategic evaluation
Background
Financial performance
- Figure 35: Wyevale, financial performance, 2002-06
Store portfolio
Retail offering
Marketing and operational issues
E-commerce and home shopping
Dobbies Garden Centres plc (Tesco)
Strategic evaluation
Background
Financial performance
- Figure 36: Dobbies Garden Centres plc, financial performance, 2003-07
Retail offering
Marketing and operational issues
E-commerce and home shopping
Klondyke Group Ltd
Strategic evaluation
Background
Financial performance
- Figure 37: Klondyke Group Ltd, financial performance, 2003-07
Store portfolio
Retail offering
Marketing and operational issues
E-commerce and home shopping
Strategic evaluation
Background
Financial performance
- Figure 38: Blue Diamond, financial performance, 2003-07
Store portfolio
Retail offering
Marketing and operational issues
E-commerce and home shopping
Country Homes and Gardens Plc
Strategic evaluation
Background
Financial performance
- Figure 39: Country Homes and Gardens, financial performance, 2003-07
Store portfolio
Retail offering
Marketing and operational issues
E-commerce and home shopping
Hillier Nurseries Group Ltd
Strategic evaluation
Background
Financial performance
- Figure 40: Hillier Nurseries Group Ltd, financial performance, 2003-07
Store portfolio
Retail offering
Marketing and operational issues
E-commerce and home shopping
Notcutts
Strategic evaluation
Background
Financial performance
- Figure 41: Notcutts nurseries, financial performance, 2003-07
Store portfolio
Retail offering
Marketing and operational issues
E-commerce and home shopping
Squires
Strategic evaluation
Background
Financial performance
- Figure 42: DJ Squire & Co Ltd, financial performance, 2003-07
Store portfolio
Retail offering
Marketing and operational issues
E-commerce and home shopping
The Garden & Leisure Group Ltd
Strategic evaluation
Background
Financial performance
- Figure 43: The Garden & Leisure Group Ltd, financial performance, 2003-07
Store portfolio
Retail offering
Marketing and operational issues
E-commerce and home shopping
Haskins
Hurrans
Capital Gardens
Non-specialists
B&Q
Company overview
Garden products offering
Recent developments
Homebase
Company overview
Garden products offering
Recent developments
Focus (DIY) Ltd
Company overview
Garden products offering
Recent developments
Argos
Company overview
Garden products offering
Recent developments
John Lewis
Company overview
Garden products offering
Recent developments
Wilkinsons
Company overview
Garden products offering
Recent developments
Woolworths
Company overview
Garden products offering
Recent developments
Robert Dyas
Company overview
Garden products offering
Recent developments
Tesco
Company overview
Garden products offering
Recent developments
Asda
Company overview
Garden products offering
Recent developments
Direct selling
Other retailers
Retailer Advertising and Promotion
Key points
Advertising spend versus sales
- Figure 44: Advertising spend versus garden products sales, 2004-07
- Figure 45: Top 30 main monitored media advertising expenditure by garden centres, 2004-07
Appendix -- Where They Shop and What They Buy
- Figure 46: Products purchased from a specialist garden centre or nursery in the last 12 months, by gender, age, socio-economic group, lifestage, presence of children, Mintel' s Special Groups, working status, tenure, region, ACORN category, media usage, supermarket usage, household size and car ownership, June 2008
- Figure 47: Products purchased from a specialist garden centre or nursery in the last 12 months, by gender, age, socio-economic group, lifestage, presence of children, Mintel' s Special Groups, working status, tenure, region, ACORN category, media usage, supermarket usage, household size and car ownership, June 2008
- Figure 48: Products purchased from a specialist garden centre or nursery in the last 12 months, by gender, age, socio-economic group, lifestage, presence of children, Mintel' s Special Groups, working status, tenure, region, ACORN category, media usage, supermarket usage, household size and car ownership, June 2008
- Figure 49: Garden products purchased from a DIY store in the last 12 months, by gender, age, socio-economic group, lifestage, presence of children, Mintel' s Special Groups, working status, tenure, region, ACORN category, media usage, supermarket usage, household size and car ownership, June 2008
- Figure 50: Garden products purchased from a DIY store in the last 12 months, by gender, age, socio-economic group, lifestage, presence of children, Mintel' s Special Groups, working status, tenure, region, ACORN category, media usage, supermarket usage, household size and car ownership, June 2008
- Figure 51: Outlets used for garden products in the last 12 months, by gender, age, socio-economic group, lifestage, presence of children, Mintel' s Special Groups, working status, tenure, region, ACORN category, media usage, supermarket usage, household size and car ownership, June 2008
- Figure 52: Outlets used for garden products in the last 12 months, by gender, age, socio-economic group, lifestage, presence of children, Mintel' s Special Groups, working status, tenure, region, ACORN category, media usage, supermarket usage, household size and car ownership, June 2008
- Figure 53: Number of different outlets used for buying garden products in the last 12 months, by gender, age, socio-economic group, lifestage, working status, tenure, ACORN category, commercial TV viewing, region, media usage, supermarket usage, presence of children and Mintel' s Special Groups, June 2008

Garden Products Retailing - UK - September 2008

Table of Contents