Garden centres are winning market share again – after 3 years of decline. The half year figures of the GFK consumer market research also supports this fact.
This research shows that in the first half of 2018, consumers purchased in total around 2.2 million euros of garden products. This turnover is divided into two main groups, Product Group Garden includes, paving, wood panels, garden play items, garden sheds, greenhouses and pond products. €806 million was spent on these with an average spend of €57,95 per item. The second group, Garden Continued was made up of all other garden products and had a turnover of €1.4 million, which included €540 million of living products (38.1%) and non-living products were €877 million (61.9%). The average spend per product in Garden Continued was €4.16.
The growth in spending in garden products was specifically in sustainable products, in larger products such as garden sheds, greenhouses, paving and garden wood. This can be explained by the fact that house buying has increased and consumers are daring to make larger investments due to a more attractive economy.
The Garden Centre
If you just look at the figures of garden centres you can see that their turnover has increased by 8%, against an increase of 6% for the whole market. The market share of Garden continues to rise from 34.3% to 36.2%, an increase of nearly 6%. The improved market share is mainly in the growth in green sales. In outdoor green sales in which this category performs particularly well in the whole market, garden centres have achieved between +9% and +10%. The increase lies mainly in flowers and houseplants: a plus of 8% where the total market in this category has seen a decline of 6%. Garden centres are also doing well in garden lighting and Christmas. It is interesting that in recent years the average product price at garden centres has decreased and the number of articles has increased.
DIY stores are also winning market share, where all other retail channels selling garden products are staying the same or even declining. DIY stores are also doing well in outdoor green with an increase of 8%. They are also successful in garden lighting (+21%) and garden furniture (+13%). Garden centres are realizing an increase of garden furniture of 2%, just like the rest of the market. It is interesting to see that DIY stores are not achieving the same turnover in barbeque, pots and vases as they did in the past.
Online is achieving a similar market share for the first time in many years. In Sustainable Garden (garden wood, paving and garden sheds) Online is really succeeding, while the turnover in Garden Continued stays the same. Because the total turnover of Garden Continued is increasing, Onilne is losing market share.