State of the Industry: ‘Level is the new up’

When I was asked to comment on the state of our industry in the United Kingdom for this issue of Garden Center magazine, I was immediately reminded of a phrase that seemed to surface at our main garden trade show, Glee, last September, which was, “Level is the new up!” These five words put a completely new perspective on our aspirations and the challenges that face us in the garden trade worldwide with sales on a plateau after having been in decline for some time.

There was, of course, a time when we all discussed how much we were up in sales from the previous year but for a long time now this has seemed a distant memory. Having said that though, this current season (so far, at least) is proving to be much more positive and optimistic. This must, in no small part, be due to a much higher level of optimism as the UK economy starts to rear its head out of one of the longest recessions on record.

Of course, we are also a group of very small islands located in the North Atlantic at the mercy of the jet stream and its seemingly unpredictable passage over some 3,000 miles of water from the coast of North America. This has had the effect of causing severe droughts followed by the wettest April to June weather on record during 2012. The weather this year has been much kinder, resulting in almost perfect gardening conditions in the early months of 2014. These two factors, probably more than others, have combined to give UK garden retailers a much needed and long-awaited boost. At the end of April, sales were running at nearly 19 percent up on the same period last year and sales of outdoor furniture and barbeques at 23 percent up. The sales of outdoor plants however, fell by 4 percent.

Having said that, the Garden Centre Association figures revealed that May was only 2.9 percent up on May last year with annual gains now running at 15.8 percent.

Credit must also be given to the retailers for embracing their catering (cafes, restaurants and the like) with such gusto. This sector is so important and dominant within the trade now that it represents anything between 15 and 25 percent of revenue ... and a very profitable chunk of revenue it is, too. With Christmas sales also accounting for some 20 to 25 percent of annual sales, it is clear that the traditional gardening portion of the sales is taking a hard hit.

The leaps and bounds made by garden centres with their restaurants and cafes have made such a change to consumer behaviour that they are now challenging the traditional British “pub” as customers realise they can enjoy top quality eating experiences in family friendly establishments with unrestricted hours, ample car parking facilities and welcoming environments. The addition of other niche markets such as farm shops, giftware, cook shops and pet departments has also added to the appeal of a trip to the garden centre for a family outing.

Overall, life is not as easy as it may have been in past times, though there are glimmers of optimism and hope on the horizon. And this is backed up by a surge in planning applications and new builds as owners gain in confidence and are starting to consider expansion plans, which have been on hold for the last few years.

The challenge now for the industry is to engage and enthuse the new generation of gardeners and to understand that the garden centre has become a fashionable and trendy place to go. The food offer, in most cases, is the driver for this, but opportunities abound to build an exciting and interesting destination for people to visit in order to enjoy themselves in a relaxed atmosphere and to feel happy that there is sufficient interest for all in the family. They can buy plants and products that will give them great pleasure, enhance their lives and make them feel good about themselves.

Kevin has worked as an independent garden center consultant to retailers, suppliers, DIY stores and trade organizations all over the world since 1995. Before that time he was a garden centre manager with three leading UK garden retailers. kevin@thegardenworks.co.uk