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Garden Products Retailing - UK - June 2016

Garden Products Retailing - UK - June 2016

“Competition in garden retailing is intensifying as merger and acquisition activity is reshaping the specialist and DIY sectors, creating large multiple chains in an industry which as recently as 10 years ago was dominated by independent companies and small chains. The nature of specialist retailing is also changing with major garden specialists developing a broader offer in restaurants, clothing and housewares to attract customers year round. As well as generating extra revenues, these developments reduce specialists’ dependence on seasonal garden ranges. Meanwhile non-specialists are adding to their garden ranges, ambitious for a share of consumer spending.”

– Jane Westgarth, Senior Market Analyst

How can garden retailers embrace the trend to treat the garden as a room?
How can garden centres encourage people to visit more frequently?
As smartphone ownership grows, how can garden retailers deliver suitable digital content to engage shoppers?


OVERVIEW
What you need to know
Products covered in this Report
EXECUTIVE SUMMARY
The market
Figure 1: Consumer spending on garden products, 2011-21
Figure 2: Garden market segmentation, broad segments, 2015(est)
Figure 3: Attitudes towards time at home, ‘Gardening is my favourite pastime’, by age, socio-economic group and tenure, November 2015
Figure 4: UK average rainfall, mm, by month, 2013-15
Figure 5: Trends in the age structure of the UK population aged 15+, 2010-20
Companies and brands
Figure 6: Distribution of garden products, by type of retailer, 2015 (est)
The consumer
Figure 7: Presence of gardens and allotments, April 2016
83% personally maintain their garden
Gardening can be a shared activity
Figure 8: Maintenance of gardens and allotments, others maintain, April 2016
47% of gardeners garden once a week
Figure 9: Frequency of gardening, April 2016
Confident gardeners are wealthier
Figure 10: Confidence when gardening, April 2016
45% of people with gardens bought from B&Q
Figure 11: Retailers used in the last 12 months for garden purchases, April 2016
Staff knowledge and inspiring displays are the biggest influence on choice of where to shop
Figure 12: Characteristics influencing choice of retailer for garden products, April 2016
81% agree their garden is a good place to relax
Figure 13: Attitudes towards the garden or outside space, April 2016
Three target groups for garden retailers
Figure 14: Target groups for the garden, April 2016
What we think
ISSUES & INSIGHTS
How can garden retailers embrace the trend to treat the garden as a room?
How can garden centres encourage people to visit more frequently?
As smartphone ownership grows, how can garden retailers deliver suitable digital content to engage shoppers? ... 21
THE MARKET
What you need to know
Steady growth predicted for garden sales
Diverse market with many elements
Important to reduce reliance on seasonal markets
Intense competition
1.9 million more over-55s by 2020
Market size and forecast
Market to grow by 12.7% between 2016 and 2021
Figure 15: Consumer spend on garden products, 2011-21
Figure 16: Consumer spend on garden products, at current and constant prices, 2011-21
Forecast methodology
Market segmentation
Figure 17: Garden market segmentation, broad segments, 2015 (est)
Reducing dependence on spring season
Trend to outdoor living
Figure 18: Consumer spending on garden products, by market segment, 2011-16
Channels to market
New competitive pressures
Figure 19: Distribution of garden products, by type of retailer, 2015 (est)
Market drivers
Seasonal planting
Barbecue culture
Garden chemicals
Cordless and robot mowers
Stylish garden buildings add useful living space at cheaper cost than an extension
Wild birds
Figure 20: The garden market, by segment, 2015 (est)
Ownership of gardens
Figure 21: Type of garden, April 2014
Gardening as a favourite pastime
November 2015
Around 1 million allotments in the UK
61% say their garden is a good place for GYO
Revamping the front garden
Rainy days
Figure 23: UK average rainfall, mm, by month, 2013-15
1.9 million more over-55s by 2020
Figure 24: Trends in the age structure of the UK population, 2010-20
KEY PLAYERS
What you need to know
Wyevale and Dobbies combined will be a sector giant
Wyevale has been building profits
Garden centre outlet numbers
Trading online
Importance of in-store restaurants and cafés
Concession sales are building
Innovation in gardening
Investment in stores
Companies and brands
Garden centre turnover
Figure 25: Garden centre operators, turnover (excl VAT), 2010-15
Profitability of garden centres
Figure 26: Garden centre operators, operating profits, 2010-15
Garden centre outlet numbers
Figure 27: Garden centre operators, outlet numbers, 2012-16
Garden centre turnover per outlet
Figure 28: Garden centre operators, sales per outlet, 2011-15
Trading online
Figure 29: Garden centre operators, online activity, 2016
Importance of in-store restaurants and cafés
Figure 30: Garden centre operators, catering summary, 2016
Expanding the product mix
Figure 31: Examples of concessions featured at garden centres, 2016
Competitive strategies
Major takeovers will affect competition
B&Q awarded for sustainable retailing
Convenient shopping at grocery stores
Retailers eager to embrace outdoor living
Rise of the value retailers
Online retailing of gardening products is growing
Concessions taking up more space at garden centres
Digital activity
Loyalty schemes
Linking with celebrities and other trusted brands
Launch activity and innovation
Control your garden with a smartphone
Figure 32: The LG Smart Garden, May 2016
A plant that charges your phone
Figure 33: Bioo phone charger, May 2016
Waitrose re-invents soil
Figure 34: Waitrose, Kado plant, May 2016
Plants targeting smaller spaces
Click & Collect
Drive-in collection point
Biodegradable pots that add to point-of-sale impact
Gas power for fire pits
Figure 35: Solus Decor fire table, May 2016
Garden centre refurbishments
Café and restaurant additions
Space allocation summary
Figure 36: Dobbies, Reading, Wildlife Garden display, May 2016
Figure 37: Garden centres estimated outdoor space allocation, May 2016
Figure 38: Wyevale, Hillingdon, Buzzing Bakery, May 2016
Figure 39: Garden centres estimated indoor space allocation, May 2016
Figure 40: Garden centres Estimated concession/trading partners split by percentage of total selling space, May 2016
Figure 41: DIY retailers estimated outdoor garden space allocation, May 2016
Figure 42: DIY retailers estimated indoor garden space allocation, May 2016
Figure 43: DIY retailers estimated non-garden – Garden space allocation split, May 2016
Figure 44: DIY retailers estimated outdoor – Indoor garden space allocation split, May 2016
Figure 45: Garden products retailers detailed space allocation as a percentage of total floor space estimates, May 2015
Advertising and marketing activity
£40.6 million advertising in 2015
Figure 46: Total above-the line, online display and direct mail advertising expenditure on garden products retailing, 2012-15
B&Q is the largest advertiser
Figure 47: Total above-the line, online display and direct mail advertising expenditure on garden products retailing, shares, 2015
Large retailers boosting spend
Figure 48: Garden retailer advertising, 2012-15
Campaign specifics
Wyevale uses scrapbook images
Figure 49: Wyevale, garden advertising, 2015
Dobbies features ‘your patch’
Figure 50: Dobbies’ garden advert, Spring 2015
Figure 51: Dobbies’ Christmas advert 2015
Television and press dominate media
Figure 52: Above-the line, online display and direct mail advertising expenditure on garden products retailing, by media type, 2015
Embracing social media
Nielsen Media Research coverage
THE CONSUMER
What you need to know
88% of UK households have a garden, outside space or allotment
83% of those with an outside space are gardeners
14% of gardeners are ‘extremely confident’
B&Q used by 45% of people with gardens, allotments or an outside space
Knowledgeable staff and displays that give ideas are the most influential factors
People have very positive feelings about gardens and gardening
Three key target groups for the garden
Presence of gardens and allotments
Village and suburban homes most likely to have a garden
12% of UK homes do not have an outside space
Private renters least likely to have an outside space
Figure 53: Presence of gardens and allotments, April 2016
Maintenance of gardens and allotments
83% of those with an outside space are gardeners
Figure 54: Maintenance of gardens and allotments, personally maintain, April 2016
Engagement with garden services
Gardening is a sociable pastime
Figure 55: Maintenance of gardens and allotments, others maintain, April 2016
47% of gardeners participate at least once a week in summer
Figure 56: Frequency of gardening, April 2016
Over-55s garden most regularly
Confidence when gardening
14% of gardeners feel extremely confident
Figure 57: Confidence when gardening, April 2016
Confident and fairly confident gardeners participate most regularly
Figure 58: Frequency of maintaining the garden, by confidence when gardening, April 2016
Where they buy things for the garden
76% of those with gardens purchased in the last year
Figure 59: Repertoire of retailers used in the last 12 months for garden purchases, April 2016
B&Q is the most used retailer for garden products
Homebase has weakest coverage in the north of England
Value retailers falling short in London
Village/rural shoppers go to garden centres
Wealthiest shoppers use B&Q and the big garden centres
Internet used by 10% of those with gardens or an outside space
Figure 60: Retailers used in the last 12 months for garden purchases, April 2016
Confidence affects choice of retailers
Figure 61: Retailers used in the last 12 months for garden purchases, by gardening confidence, April 2016
Rare gardeners go to B&Q
Figure 62: Retailers used in the last 12 months for garden purchases, by frequency of gardening, April 2016
Characteristics that influence choice of retailer
Staff knowledge is the most influential factor in where to shop
Inspirational displays influence 40%
Attracting families
Cafés are important to 23%
25-44s value an informative website
Other departments increase reasons to visit
Figure 63: Characteristics influencing choice of retailer for garden products, April 2016
Attitudes towards the garden
Figure 64: Attitudes towards the garden or outside space, April 2016
Three main target groups
Figure 65: Target groups for the garden, April 2016
Target groups – Key characteristics
Figure 66: Gardening confidence, by target groups, April 2016
Where the target groups shopped
Figure 67: Retailers used for garden purchases, by target groups, April 2016
Figure 68: Attitudes towards the garden, by target groups, April 2016
Figure 69: Target groups for the garden, by confidence, April 2016
Figure 70: Retailers used in the last 12 months for garden purchases, by target groups, April 2016
Figure 71: Characteristics influencing choice of retailer for garden products, by target groups, April 2016
APPENDIX
Data sources, abbreviations and supporting information
Abbreviations
Consumer research methodology
Market size and forecast
Data sources
Market sizing and segment performance
Forecast methodology
RESEARCH METHODOLOGY
UK Research Methodology
Sampling and weighting
Face to Face Surveys
Brand & Social Media Research
Trade research
Desk research
Statistical Forecasting
The Mintel fan chart

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