Association Comment: BHETA A time for adaptability
The Covid-19 pandemic has been and remains a human tragedy, so the fact it has also generated a huge commercial boost for most sectors of the home and garden industry is a positive truth, which is to be acknowledged soberly, says Will Jones, Chief Operating Officer at BHETA.
decorative structures, greenhouses, storage and hard landscaping, as well as furniture, parasols, heating, lighting and BBQs. In all, 26.3% of UK consumers have purchased more gardening products since the outbreak of Covid-19 and 23.8% of UK consumers intend to spend more time gardening or growing their own fruits or vegetables in the foreseeable future. With house prices up to record levels and mortgage approvals up, this must bode well, if we are able to adapt to the inevitable changes.
The rise of online
Which brings me to the rise of online. The change in shopping habits is significant, which for those suppliers and retailers able to adapt quickly enough has also proved positive. Buying local has made a comeback – generally good for independent specialists – and of course the growth of digital channels – supplier and retailer – is phenomenal. Mail order and e-commerce have made a five to ten year leap forward in twelve months. Bricks and mortar is down 3.2% in the garden sector and online up 38.8%, although the long term appeal of bricks and mortar destination shopping in this category is demonstrated by the forecasts of online sales at £2.3M by 2024, while bricks and mortar remains static at £10M by the same date.
Like the DIY industry, garden suppliers and retailers owe it to the industry, employees and the post-pandemic recovery to understand what has been happening and what needs to be done to secure the future.
Speaking anecdotally based on the BHETA’s most recent credit forums, BHETA member garden suppliers ended 2020 on something of a high as the year turned out to be so much better economically than it could have been. This is caveated, of course by the fact that for the garden sector, BHETA is perfect for suppliers of tools and consumables, as well as outdoor leisure, but does not tend to include horticulture - a category which for many has proved a much more challenging Covid-19 experience, thanks to its perishable nature. A key positive for supplier members is that BHETA’s market information
is always current and based on a combination of reports from Globaldata, Google, the Bank of England and BHETA’s own member research.
Consumer refocus
Last year, judged on sales figures alone, clearly shows the negative financial impact of Covid-19, but there have been numbers of mitigating positives. The most obvious change has been the consumer refocus on ‘home and garden’ with the consequent surge in interest in gardening, garden leisure, alfresco dining and general home / garden improvement. For DIY and garden combined 2020 Q3 YOY was up 9.5%, and the sector is projecting 1.7% up overall for the year, despite the pandemic and consequent store closures, the only sector other than food to have exhibited growth. Drilling down to garden and outdoor leisure alone, we see the negative impact of what happened to horticulture. Gardening which includes plants, seeds and growing media as well as sundries, garden tools and watering, while up 3.4% in Q3 is likely to end the year down 4.9%. Outdoor leisure on the other hand is projecting growth of 3.4% on the total year. This category comprises garden buildings,
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The start of 2021, however, combining post-Christmas with lockdown, with poor weather initially and Brexit, has been looking tough. There is much to be positive about, but the challenges around logistics and tariffs are real. Ensuring import and export at affordable freight and duty rates will take up precious time; and the cost of importing a container from the Far East has skyrocketed. While the zero-tariff deal is welcome, there is considerable red tape to be faced, whether that is paying import VAT and customs duties for selling into the EU, changes to rules of origin, or different trading terms for Northern Ireland. There are numerous grace periods still being negotiated, all of which are bound to have repercussions and pandemic restrictions in some form will inevitably continue through to the summer. The situation is also challenging especially as we see that the number of payroll employees has already fallen by 819,000 since February 2020 – with furlough still in place.
Embracing change
But if we can embrace change and acknowledge the significant shift in the economic structure we were used to before the pandemic, then the prospects remain good. The imperative is to adapt. For BHETA, it is all about providing members with up to the minute facts. It is then about getting behind the trends and helping adaptability with ‘how-to’ content on the BHETA website and proactive webinars looking at digital sales and marketing techniques. BHETA is also still able to enable networking opportunities for member suppliers with key retailers and export destinations. Equally, it is about keeping the longer-term challenges – such as the
sale of bladed items, the packaging tax legislation and sustainability in general – on the industry agenda. These are key issues already and critical for the future of this industry, so while we deal with the immediate challenges, we must not allow our rigour on these subjects to slacken. We have a good future ahead, but we need to work together now to ensure it. Adaptability is the word of the moment and to enable that then facts and informed advice are key.
• For further information, visit
www.bheta.co.uk or contact the BHETA Member Services Team on 07946 078566.
GCU February/March 2021
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