online sales
Digital sales are driving garden centre growth
In 2020, the Internet garden products market is estimated to achieve growth of 25%, profiting from the surge in Internet usage as a result of the coronavirus pandemic. GCUreports
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ccording to the latest Internet Garden market report from AMA Research, it is likely that online sales will continue to expand as social distancing measures remain in place, constraining in-store retailing for the remainder of 2020 and potentially into 2021. Online shopping is following an upward trajectory, with 87% of UK adults shopping online in 2020. As both fixed and mobile Internet speeds increase, and smartphone ownership expands, it is likely that more consumers will use the Internet for shopping in the coming years.
Consumers are also becoming increasingly aware that cheaper prices can be found online, with price comparison websites facilitating easy comparisons. Product research via blogs, reviews, social media and YouTube is likely to cause an increase in purchases of garden products online. During April, May and June Internet sales accounted for 31% of total retail sales in the UK, compared to 19% in
2019. Correspondingly, the value of the Internet garden market has risen significantly in 2020. In addition, demand for garden products was notably high during lockdown with consumers spending more time at home during the sunniest Spring on record. Items such as barbecues and grow-your-own products were particularly popular online purchases during the lockdown period, contributing to estimated market growth of 25% in 2020. Jane Tarver, Market Research Analyst for AMA Research comments “whilst in-store purchases currently still
dominate the retail garden sector, into the medium-term, online sales are likely to feature more prominently across all channels in the garden distribution sectors. Garden centres in particular are likely to increase their presence in the online market, which could significantly increase online sales of horticultural products”. Market growth continues to be underpinned by the popularity of ‘click & collect’ services. Whilst home
delivery lead times have improved considerably in recent years with next day delivery being a common requirement, many consumers prefer the convenience of collecting items from a local store. Online promotions have also helped to sustain market growth, retailers regularly offer discount codes, special offers or free delivery on purchases over a certain amount which often encourages consumers to purchase online. It is expected that the Internet garden market will continue to increase to 2024, although the amount of growth will be dependent on the recovery of the retail sector post-lockdown. Lower growth levels are forecast after 2021, assuming that in-store retailing begins to recover, with annual growth of around 8% forecast towards the end of the review period as the market begins to mature.
DownYouHighStreet.com is publishing a new report looking at the evolution of the British High street and how Covid-19 has been a catalyst for change within the retail environment. The report shows that history tends to repeat itself. If we look at the impact of change on Blockbuster, and then again on Borders, we can see that these two once great retailers failed to respond to changes in customer needs and desires. What customers value most has changed considerably in the last few years, and this has been accelerated by C19. Right now, customers want convenience above all else – and it will be the retailers who give them this that will thrive.
Consumer habits have also changed: they are more comfortable than ever answering questions about themselves online, they are less loyal to brands than in previous years; and buying online has increased considerably and continues to do so. Although many independent retailers were already adding online to their bricks-and-mortar saleschannels, the lockdowns have sped up this move. For example,
DownYourHighStreet.com, which helps independent retailers create an online shop, has seen a huge increase in business with more retailers moving online in one day (Monday 2nd Nov) than in the whole of January 2020.
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www.gardencentreupdate.com GCU Winter 2020
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