| KN52102 |
| KEY NOTE HORTICULTURAL RETAILING : July 2002 |
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This report covers: Dobbies Garden Centres, Hillier Nurseries, Notcutts, Wyevale Garden Centres, horticultural products, growing stock, seeds, bulbs, house plants, plants, trees, shrubs, garden care, growing media, fertilisers, agrochemicals, garden tools and equipment, lawnmowers, power tools, hand tools, assets, buildings, furniture, ancillaries, distribution, gardens by size, distribution by size, ownership by social grade, age of main gardener, garden orientation by grass, flowers, fruit, vegetables, gardeners expenditure, fertiliser use, weedkiller use, ownership of equipment,
Companies covered include: Dobbies Garden Centres, Hillier Nurseries, Notcutts, Wyevale Garden Centres,
EXECUTIVE SUMMARY
Sales of horticultural products experienced strong growth in almost every sector in 2001, with the market rising to an estimated value of £3.08bn.
Growing stock remains a key sector of the market, accounting for around 30 percent of sales. Other market sectors include: garden care; garden tools and equipment; and assets/buildings, furniture and ancillaries.
Consumer attitudes towards gardening have changed substantially in recent years. Younger homeowners regard the garden as an area of relaxation, and, encouraged by gardening programmes, are looking for products that allow them to obtain an `instant effect' for minimal effort. Therefore, power tools (instead of hand tools), bedding plants (instead of seeds), multipurpose lawncare products, and decking, have increased in popularity.
Distribution is also changing. Garden centres have lost share for many garden products, particularly to the DIY multiples, which benefit from greater buying power, locations and promotional activity.
Garden centres have recognised this trend and have developed strategies to reduce direct competition with these outlets. The result has been successful growth for the horticultural retailing market overall, as well as for garden centres, which are diversifying into non-garden sectors in order to maintain healthy rates of growth.
The DIY sector is very concentrated, with only three major retail groups, reflecting recent acquisition activity. The garden-centre channel, however, remains highly fragmented, with many garden centres and nurseries operating on a regional basis. Wyevale PLC has emerged as the clear leader, operating on a national basis as a result of its acquisition strategy.
Key Note forecasts that the overall market will grow by around 7 percent to 8 percent per year over the next 5 years. This reflects the high level of consumer interest in gardening, partly driven by the media: the many television programmes now dedicated to the subject show consumers how to transform even the smallest gardens into stylish `outdoor rooms'. In addition, rising incomes and changing lifestyles have encouraged more homeowners to improve their garden environment.
TABLE OF CONTENTS
| Executive Summary | 1 |
| 1. Market Definition | 2 |
| REPORT COVERAGE | 2 |
| MARKET SECTORS | 2 |
| Growing Stock | 2 |
| Garden Care | 2 |
| Garden Tools and Equipment | 2 |
| Assets, Buildings, Furniture and Ancillaries | 2 |
| MARKET TRENDS | 3 |
| Rise in DIY Activity | 3 |
| Interest Generated by Media Influence | 3 |
| Climatic Changes Affecting Sales | 4 |
| Increased Consumer Choice | 4 |
| Product Development and Innovation | 4 |
| Smaller Garden Sizes | 4 |
| Population | 4 |
| MARKET POSITION | 5 |
| The UK Housing Market | 5 |
| Household Spending | 5 |
| Table 1: Expenditure on Household Goods (£m at rsp), 1997-2001 | 6 |
| 2. Market Size | 7 |
| THE TOTAL MARKET | 7 |
| Table 2: The UK Market for Horticultural Products by Sector by Value (£m at rsp and percent), 2001 | 7 |
| BY MARKET SECTOR | 7 |
| Growing Stock | 7 |
| Table 3: The UK Market for Growing Stock by Sector by Value (£m at rsp), 1997-2001 | 8 |
| Seeds | 8 |
| Bulbs | 8 |
| House Plants | 9 |
| Plants, Trees and Shrubs | 9 |
| Bedding Plants | 9 |
| Rose Bushes | 9 |
| Trees and Conifers | 10 |
| Garden Care | 10 |
| Table 4: The UK Market for Garden Care by Sector by Value (£m at rsp and percent), 2001 | 10 |
| Growing Media | 11 |
| Fertilisers and Agrochemicals | 11 |
| Garden Tools and Equipment | 11 |
| Table 5: The UK Market for Garden Tools and Equipment by Sector by Value (£m at rsp), 1997-2001 | 12 |
| Lawnmowers | 12 |
| Power Tools and Equipment | 13 |
| Hand Tools | 13 |
| Assets, Buildings, Furniture and Ancillaries | 14 |
| Garden Assets | 14 |
| Garden Buildings | 14 |
| Garden Furniture | 14 |
| Ancillaries | 15 |
| OVERSEAS TRADE | 15 |
| Table 6: UK Overseas Trade in Growing Stock by Sector by Value | |
| (£m at msp), 2000 and 2001 | 15 |
| Imports | 16 |
| Exports | 16 |
| 3. Industry Background | |
| Recent History | 17 |
| Industry Structure | 17 |
| Garden Centres | 17 |
| DIY Chains | 18 |
| Number of Companies and Employment | 18 |
| Table 7: Number of VAT-Based Enterprises Engaged in the Growing of Vegetables, Horticultural Specialities and Nursery Products by Turnover (£000 and percent), 2001 | 19 |
| REGIONAL VARIATIONS IN THE MARKETPLACE | 19 |
| DISTRIBUTION | 20 |
| Market Share | 21 |
| Table 8: Estimated Breakdown of Sales of Garden Products by Type of Retail Outlet ( percent), 2001 | 21 |
| HOW ROBUST IS THE MARKET? | 21 |
| KEY TRADE ASSOCIATIONS | 22 |
| Association of Professional Landscapers | 22 |
| British Association of Landscape Industries | 22 |
| British Bedding and Pot Plant Association | 22 |
| Commercial Horticultural Association | 22 |
| Garden Centre Association | 22 |
| Gardenex | 22 |
| Garden Industry Manufacturers’ Association | 23 |
| Horticultural Trade Association | 23 |
| Leisure and Outdoor Furniture Association | 23 |
| 4. Competitor Analysis | |
| THE MARKETPLACE | 24 |
| Garden Centres | 24 |
| DIY Stores | 25 |
| Other Retailers | 25 |
| Mail Order | 26 |
| MARKET LEADERS | 26 |
| Dobbies Garden Centres PLC | 26 |
| Hillier Nurseries Ltd | 27 |
| Notcutts Ltd | 28 |
| Wyevale Garden Centres PLC | 28 |
| OUTSIDE SUPPLIERS | 29 |
| Growing Stock | 29 |
| Seeds | 29 |
| Bulbs | 30 |
| Plants, Trees and Shrubs | 30 |
| Growing Aids | 30 |
| PBI Home and Garden Ltd | 30 |
| William Sinclair Horticulture Ltd | 30 |
| Scotts Company UK Ltd | 31 |
| Vitax Ltd | 31 |
| Garden Tools and Machinery | 31 |
| Hand Tools | 31 |
| Fiskars UK Ltd | 31 |
| Spear & Jackson Garden Products Ltd | 31 |
| Draper Tools Ltd | 31 |
| Joseph Enterprises UK | 31 |
| Lawnmowers and Powered Equipment | 32 |
| Flymo | 32 |
| Atco-Qualcast | 32 |
| Black & Decker | 32 |
| Mountfield Ltd | 32 |
| Watering Equipment | 32 |
| Garden Furniture | 33 |
| Ancillary Products | 33 |
| ADVERTISING AND PROMOTION | 33 |
| Table 9: Main Media Advertising Expenditure by Garden Centres and Online Garden Retailers(£000), 2000 and 2001 | 34 |
| Garden Furniture and Accessories | 35 |
| Table 10: Main Media Advertising Expenditure on Garden Furniture and Accessories (£000), 2000 and 2001 | 35 |
| Hortichem, Compost and Fertiliser Products | 35 |
| Table 11: Main Media Advertising Expenditure on Hortichem, Compost and Fertiliser Products (£000), 2000 and 2001 | 36 |
| Garden Tools | 36 |
| Table 12: Main Media Advertising Expenditure on Garden Tools (£000), 2000 and 2001 | 37 |
| Lawnmowers | 37 |
| Table 13: Main Media Advertising Expenditure on Lawnmowers (£000), 2000 and 2001 | 37 |
| Bulbs, Seeds, Plants and Trees | 38 |
| Table 14: Main Media Advertising Expenditure on Bulbs, Seeds, Plants, and Trees (£000), 2000 and 2001 | 38 |
| Garden Buildings | 38 |
| Table 15: Main Media Advertising Expenditure on Garden Buildings (£000), 2000 and 2001 | 39 |
| EXHIBITIONS AND TRADE SHOWS | 39 |
| PUBLICATIONS | 39 |
| 5.Strengths,Weaknesses,Opportunities and Threats | |
| GARDEN CENTRES/NUrSERIES | 41 |
| Strengths | 41 |
| Weaknesses | 41 |
| Opportunities | 41 |
| Threats | 42 |
| DIY Stores | 42 |
| Strengths | 42 |
| Weaknesses | 42 |
| Opportunities | 43 |
| Threats | 43 |
| INDEPENDENTS (DIY GOODS, HARDWARE, GARDENING) | 43 |
| Strengths | 43 |
| Weaknesses | 43 |
| Opportunities | 44 |
| Threats | 44 |
| MAIL ORDER (via catalogue and the internet) | 44 |
| Strengths | 44 |
| Weaknesses | 44 |
| Opportunities | 45 |
| Threats | 45 |
| 6. Buying Behaviour | |
| ATTITUDES TO GARDENING | 46 |
| THE MARKET FOR RETAILERS | 46 |
| Table 16: Approximate Size of Garden and Allotment (000 adults and percent), 1992, 1999 and 2001 | 47 |
| CONSUMER PROFILE | 47 |
| By Size of Garden | 47 |
| Table 17: Regional Distribution of Gardens by Size (000 and percent of adults), 2001 | 48 |
| By Social Grade | 48 |
| Table 18: Ownership of Gardens by Social Grade ( percent of adults), 2001. 49 | |
| By Age | 49 |
| Table 19: Distribution of Gardens According to Age of Main Gardener ( percent of adults), 2001 | 50 |
| CONSUMER BEHAVIOUR | 50 |
| GARDEN ORIENTATION | 50 |
| Table 20: Principal Garden Orientations (000 and percent of adults), 1992, 1995, 1999 and 2001 | 51 |
| GARDENING EXPENDITURE | 51 |
| Growing Stock | 51 |
| Table 21: Adults Having Bought Growing Stock in the Past 12 Months (000 and percent of adults), 1999 and 2001 | 51 |
| Seeds, Bulbs, Plants, Trees and Shrubs 52 | |
| Table 22: Gardeners’ Expenditure in Previous 12 Months on Seeds, Bulbs, Plants, Trees and Shrubs (000 and percent), 1992, 1995, 1999 and 2001 | 52 |
| Fertilisers and Weedkillers | 52 |
| Table 23: Gardeners’ Expenditure in Previous 12 Months on Fertilisers and Weedkillers (000 and percent),1992, 1995, 1999 and 2001 | 53 |
| OWNERSHIP OF GARDEN TOOLS AND EQUIPMENT | 53 |
| Table 24: Ownership of Garden Tools and Equipment ( percent of households), 1984, 1992, 1999 and 2001 | 54 |
| 7. Current Issues | |
| CONSUMER DEMAND | 55 |
| PRODUCT DEVELOPMENT | 55 |
| THE ROLE OF THE INTERNET | 55 |
| CORPORATE ACTIVITY | 56 |
| 8. The Global Market | |
| INTERNATIONAL INFLUENCE | 57 |
| Globalisation of Organisations | 57 |
| OTHER MARKETS | 57 |
| The Horticultural Retailing Market in the US | 58 |
| The Bulb Market in the Netherlands | 58 |
| 9. Forecasts | |
| INTRODUCTION | 59 |
| Economic Outlook | 59 |
| Housebuilding | 59 |
| Population | 59 |
| Table 25: Actual and Projected UK Population by Age Group ( percent and 000), 2000-2021 | 60 |
| Table 26: Estimated and Projected Number of Households in England by Type (000), 1996-2021 | 61 |
| FORECASTS 2002 TO 2006 | 61 |
| Table 27: The Forecast Market for Horticultural Products by Sector by Value at Current Prices (£m at rsp), 2002-2006 | 62 |
| Future trends | 62 |
| Distribution Channels | 63 |
| Product Sector Trends | 64 |
| Growing Stock | 64 |
| Garden Care | 64 |
| Garden Tools and Equipment | 64 |
| Assets, Buildings, Furniture and Ancillaries | 64 |
| 10. Company Profiles | |
| Dobbies Garden Centres PLC | 67 |
| Hillier Nurseries Ltd | 69 |
| Notcutts Ltd | 71 |
| Wyevale Garden Centres PLC | 73 |
| 11. Further Sources | |
| Associations | 75 |
| Publications | 77 |
| Directories | 78 |
| General Sources | 78 |
| Bonnier Information Sources | 79 |
| Government Publications | 80 |
| Other Sources | 81 |
| Understanding TGI Data | 82 |
| Number, Profile, Penetration | 82 |
| Social Grade | 83 |
| Standard Region | 83 |
| Key Note Research | |
| The Key Note Range of Reports |
Text © 2002 Key Note
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Last updated by Amanda Porteous February 2004
