NURSERYindustry Multiple Retailers


Slow growth and shifting fortunes in the UK Nursery market


Despite the fact that sales declined by 0.3% in 2013, the Nursery market still grew in value by 3.1% according to recent figures from market research specialist GfK. Naturally the wider economic climate remains very influential, but for the next year and beyond, there is another highly significant factor: a fall in the birth rate, it says.


Safety - a primary concern


Safety grew more rapidly than any category in December 2013. It’s a result driven by sales of equipment such as stair gates, door and bed guards and safety product sets. Reflecting a no-compromise attitude to baby safety, parents paid £2.50 more than in December 2012.


Movement in transport and monitors When compared with December 2012, the baby transportation categories grew in value by 2% thanks primarily to price increases of 10%. The categories really moving here were strollers, baby carriers and slings, closely followed by harnesses and reins.


The last year has witnessed significant growth in both stroller and monitor categories, with monitors up by 15%. Looking at Q4 2013, it is clear that the channels driving


stroller (wheeled goods) sales growth are mother and child specialists and department stores, whereas monitor increases are being driven by mass merchandisers. Baby highchair sales also grew through these outlets.


Since December 2012, stroller prices have increased by 11% and consumers are moving upmarket, with the share of premium £500+ models growing by 9%. One in five strollers were sold over the internet where prices are lower than in traditional outlets and these online sales amounted to £9 million.


The Multiples In Volume terms, two out of five Baby Monitors and one out of two Highchairs (including Booster seats) are sold in the Mass Merchandiser channel which is higher than all other outlets.


Boosters constitute 25% of the Highchairs sales in the Mass Merchandiser channel.


Mothercare in discussions to sell Early Learning Centre? According to an article in Retail Week and several national newspapers, Mothercare is in discussions to sell its pre-school toys and products business, Early Learning Centre.


The mother and baby specialist retailer is said to have asked Lazard to advise the firm as it holds talks with several parties on a 'cut-price' sale of ELC. Earlier reports suggested that Tesco was considering the business to help refresh its supermarkets, but have now reportedly put these plans on hold. Mothercare issued a profit warning last month due to the 'highly promotional' trading environment over Christmas.


For the 12 weeks to January 4th, the firm's worldwide network sales fell 4.4 per cent and group reported sales down 6.1 per cent. Total UK sales dropped 9.9 per cent in the period and UK like-for-like were down 4 per cent.


Seeing potential, seizing opportunity


For 2014, despite the falling birth rate, there will be opportunities for products at the right prices and in the right channels. As Tullika Bhalla, Nursery account manager says: “Even though the economy is on a road to recovery, birth rates have gone down in 2013, which is going to have a direct impact on the Nursery sector in 2014. Growth in the Nursery sector has slowed to 2.6% but there are opportunities to grow sales depending on the channel distribution and pricing strategy adopted.”


More from GfK at Harrogate


The BPA is delighted to present a fabulous line up of speakers at Harrogate International Nursery Fair this year, each presenting a pertinent subject to the nursery industry. These are free of charge to attend - all located in Hall G of the Harrogate International Centre from 23rd to 25th March 2014.


Hall G - Harrogate International Centre Sunday 23rd March 2014 How are customers spending their money? 14.00 – 14.30hrs – GfK


The UK birth rate decreased in 2013 and consequently there was little or no growth in volume sales for the nursery sector. However, would statistics suggest that as the economy recovers, consumer confidence is growing? How does that affect what people are buying and where?


Are new mums prepared to spend more on their babies and how do high end product sales compare with budget priced equivalents? Also, where are new mums buying their products? Do the majority still like to ‘shop’ or are they turning to online retailers? Does online really mean ‘a deal’? GfK is one of the world’s largest market research companies gathering facts and figures from major retailers to give an accurate insight into nursery trends and today’s market. Don’t miss the opportunity to find out how your customers prefer to spend their money.


page 12 www.nursery-industry.co.uk


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