Euromonitor's latest report on the UK garden market has revealed an end to consumers putting off big purchases and moving towards more free-spending.
Home & Garden in the UK found that consumers began to trade up in many areas in 2014, from decorative paint to barbecues. But they continue to seek out the lowest possible prices, even when trading up to leading brands and value-added products. As a result, overall sales growth remained low in 2014.
Home and garden remained highly fragmented at the end of the review period, with consumers more focused on product offerings than on brand in many areas. This creates an environment where private label can flourish, accounting for almost a fifth of overall value sales by the end of the review period and continuing to gain share. The leading branded player in 2014 was IKEA, benefiting from its wide range of products and prices.
Internet retailing was the only channel to see double-digit current value sales growth in 2014. It continues to gain share, particularly from home and garden specialist retailers but also other channels such as department stores and variety stores.
Growth is expected but will be slow because of price competition. It will also be constrained by maturity in many areas and by many consumers preferring to turn to professional help for home-improvement projects.
Euromonitor reported that gardening remained a very fragmented category in Germany in 2014 but continued to be led by Gardena, with a four per cent share of value sales, including 39 per cent of watering, 22 per cent of gardening hand tools and 12 per cent of lawn mowers.
In China, Zhejiang Hongyue Seeds Co remained the leading player in gardening in 2014 with an overall value share of almost one per cent. In the USA, Scotts Miracle-Gro had a market-leading nine per cent retail value share in 2014, followed by Husqvarna Outdoor Products and Stihl, each with a four per cent share.
Sales - Figures show improvement in June
HTA figures have shown that June was up 13 per cent on the same month last year. The calendar year to the end of June was 10 per cent up on the same period for 2014.
Garden Centre Association figures show a rise of about eight per cent for the year to date, with furniture/barbecues 11 per cent up, clothing 10 per cent, catering nine per cent, outdoor plants eight per cent, pets/aquatics seven per cent, food hall five per cent, gifts four per cent and garden sundries four per cent.