UK DIY News
HTA: Garden Centres See Steady Sales In July
The latest Horticultural Trades Association (HTA) Market Update for August 2024 reveals steady garden centre sales in a year marked by very wet and unpredictable weather. This was primarily thanks to strong catering, food, and farm shop performance counteracting subdued plant and core gardening sales, which has largely been the story of 2024 so far.
Fran Barnes, Chief Executive of the HTA, commented:
"The impact of the weather on garden centre sales this year has been quite significant, and July was no exception. Despite being drier and sunnier than July 2023 by the end of the month, some parts of the UK experienced more than the normal monthly rainfall in just the first couple of weeks.
“Sales of plants struggled, with hardy plants down 9% compared to July 2023. Garden furniture sales also took a hit, down 19% against the same period last year. This downturn in garden furniture sales contributed to Average Transaction Values about par with July 2023 despite inflation and down 8% compared to the warmer, drier July 2022.
“However, sales of associated core gardening products like tools and equipment, plant care, and garden features increased by 8%. BBQs and heating sales were boosted by the warmer end of July 2024, rising by 28% compared to the wet July 2023.
“I am pleased to report that garden centre sales overall finished the calendar year to the end of July up by 3% compared to 2023, largely buoyed by strong performances in catering, food and farm shop departments, which saw a 15% year-to-date increase, even as garden and gardening category sales suffered, down 2% year-to-date.
“Our report also shows that consumer confidence continued to improve marginally in July, reaching levels significantly above the prior year, and the inflation rate has stabilised at around 3%. Combined with the appeal of garden centre hospitality, this is promising for footfall and spending as we head towards autumn and Christmas preparations.
“Although positive sales trends in summer months are welcome, these are typically smaller months for garden centre sales, and the broader economic environment remains difficult. Retailers are contending with rising input and labour costs, which place significant pressure on profit margins. We will continue to work closely with our members and the government to advocate for the support our industry needs to navigate these challenges and to ensure its long-term sustainability.”
Source : HTA
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