A YEAR IN REVIEW: INDUSTRY COMMENT How was THE 2018
“There is no doubt that 2018 was another year in which the garden retail
sector demonstrated its
resilience in the face of so much uncertainty and the changing retail environment.
The weather – as always – had a big role to play. Many have remarked upon the ‘backwards’ nature of the season, with a slow start and a ‘bonus’ extended sales season in autumn and early winter. However, it was the consolidation of the supply base that 2018 will probably be best remembered for.
The first quarter of 2018 started with the Beast from the East, but this was only the start of things to come. Gardman suffered a devastating fire at its Daventry warehouse. What was most notable was Gardman’s steadfastness during this time, a wholly admirable quality in the face of such adversity. The fire set into motion some significant changes for the sector, and we now end the year with Gardman being absorbed into the Westland portfolio. We are yet to
12 DIY WEEK 14 DECEMBER 2018
see how this will take shape but it’s great to think that one of our most-recognisable brands could continue long into the future. Wyevale was also certainly a hot topic in 2018. A key customer for many GIMA members, the year began with the rumour mill going into overdrive regarding a possible sale. As this quickly became reality, we saw store after store being snapped up. However, with most of the key centres now having been sold, we’re still waiting to find out what the final profile of Wyevale will look like.
On the positive side, we are seeing a re-emergence of the independent garden centre industry with some smaller businesses having a once-in-a- lifetime opportunity to grow their business through acquisition. Whilst this may be creating some administrative headaches for many of our members, the longer- term prediction is one of a strong sector, which we hope will thrive under these new opportunities. Another retailer that provided
for you?
We talk to leading industry figures for their take on the past year and how their respective sectors have fared, as well as a look to 2019
PANEL
Vicky Nuttall Garden Industry Manufacturers Association director
John Herbert EDRA/GHIN general secretary
Mike Gilbert Specialist garden centre property
consultants of Gilbert Evans
Alan Evans Specialist garden centre property
consultants of Gilbert Evans
Martin Elliott Home Hardware chief executive
“SIGNIFICANT CHANGES SET IN MOTION”
GIMA director, Vicky Nuttall gives her take on key developments across the sector this year and what that has meant for the association’s members
the market with some uncertainty was Homebase. The start of the year had many wondering where Homebase’s future lay, however, the sale by Bunnings to the Hilco Group for just £1 certainly set the tone.
already
Many GIMA members were trading cautiously with
the group, but nevertheless the CVA in August and latterly, store closures, will impact on members’ bottom
lines as we move
forwards. However, recent news would appear to show a turning of fortune for the DIY retailer with the recent refinancing and new cash injection, which looks set to support this important retailer in its efforts to maintain its key role in the sector.
Meanwhile, not everything in 2018 was peppered with a sense of uncertainty. Many GIMA members enjoyed strong additional sales opportunities, as a result of the ongoing growth of discount retailers and internet traders. The industry also came together to discuss the evolution of consumer
spending habits,
and how technology is changing buying cycles. Whilst this is still an ongoing topic, the fact that the industry has started the conversation, means we can work together to find solutions. Finding a solution to single- use plastics is another area where the industry collaborated for the benefit of the masses. The challenge now lies in finding commercially viable alternatives, and 2019 will see GIMA keeping a close eye on developments in packaging technology.
Looking ahead to 2019, it’s
hard to say what will be shaping the outcome. It’s safe to expect further market consolidation, and Brexit will of course continue to shape the agenda, but we also have a huge amount of new product innovation to look forward to, as well as a revitalised and refreshed retail picture. They say that a change is as good as a rest – and we’ve seen plenty of change in the last 12 months – so I, for one, am excited to see how it will shape our sector.”
www.diyweek.net
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