‘It’s great to see garden centres outperforming the high street’
The garden retail industry had plenty to build on coming into 2015, following growth in 2014. GCU spoke to suppliers about how the trade has performed over the past 12 months
015 had a tough act to follow. 2014 was boosted by good weather, an economic upturn and solid consumer confidence, so how did the following 12 months compare? It was an important year for The Scotts Miracle-Gro Company, with the Chapelwood brand joining the company to complement its existing offering. UK vice president and general manager Sheila Hill was pleased by the response from the industry, both for the new additions and the existing ranges. “We are really proud of our launch of ChapelWood Bird Food and the Weedol Power Sprayer but what really stands out for me is the great reaction and feedback we had to our Glee stand in September,” she explains.
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“This was the opportunity to really showcase our brands, our innovation for 2016 as well as remind our customers of the strength of our brands and our position as the industry leader and the investments we continue to make. As a result we feel tremendously positive about 2016 and the support we will receive from our customers.”
2015 has proved to be a consistent year, which given continued trading conditions is a positive. Sheila continues: “I think the best way to describe the market is ‘steady’! We’ve seen lots of great growth in several of our key product areas. But we never rest on our laurels,
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and will be implementing several new initiatives and, as always, will be supporting all our brands and products for an even better 2016.
“2014 was one of the best years ever for the gardening industry, helped by good weather, and so remaining flat in 2015 was a great result. The main factor behind this is the continuing growth in consumer confidence as well as their high engagement in gardening. Consumers still see their gardens as a vital part of their home and will spend their money to produce somewhere beautiful they can enjoy, relax in and spend quality time with friends and family.” Another major player which saw significant change in 2015 was Gardman, bought out by management in June. Marketing manager Rebecca Griffiths explains: “For us as a company, the highlight of the year has undoubtedly been our recent management buy-out. Our new investors, Rutland Partners, have helped us achieve the best financial position we have enjoyed for many years and will enable us to develop our increasingly successful five-brands strategy to its maximum potential.” She adds: “For the wider industry, it’s great to see garden centres generally outperforming the high street and achieving excellent year-round footfall.”
That trend has seen strong performance in terms of sales for the company this year. “In
2015 we have seen a dramatic increase in sales across many of our categories, these include gardening tools, hanging garden and garden leisure,” Rebecca says. “There’s also an apparent trend towards ‘trading up’ from entry-level products to more premium ranges; a good example of this is our garden tooling ranges, including our Moulton Mill brand, which went from launch to around £5 million turnover in its first year.”
Retailers have also played a major role in the performance of the market, by encouraging customers to visit their centres with amenities and great catering offerings. “The economy is improving, albeit still slowly, so consumers are being more and more relaxed about their spending,” Rebecca says. “But the main influence, we feel, is that many garden centres are a really great place to go for a day out. They offer inspiration (and great food) and put people in a good mood to make a purchase, or two! With so many fantastic products available that deliver immediate results, investing in your garden is seen as a good ROI.”
It’s not all been straightforward for the past 12 months, with significant disruption caused by the end of Solus, with Scotts picking up the Solus brands before deciding to continue only with the Chapelwood birdcare brand. Rebecca comments: “The industry has taken time to get used to the massive adjustment
GCU December 2015
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