The Horticultural Trades Association (HTA) has released its August Market Update report, revealing that the garden retail sector has exhibited strength and resilience despite erratic weather patterns and economic fluctuations in 2023. The report highlights various consumer offerings that have contributed to the sector’s steady performance.
Fran Barnes, Chief Executive of the HTA, noted that garden center sales remained steady in July, maintaining parity with the same period in 2022. Despite unpredictable weather and economic changes, strong footfall of customers led to a significant increase in transactions, up by 10% compared to July 2022 and 5% versus July 2021. However, the contents of baskets reflected lower-value items, resulting in an average transaction value decline of 8%.
The decline in demand for garden furniture from 15% of total sales in July 2022 to 10% in July 2023 was attributed to adverse weather impacts and increased discounting strategies to clear excess stock. Consumer Confidence Index data revealed a significant dip of -6 points to settle at -30, indicating the financial strain experienced by consumers.
To address these challenges, garden centers have diversified their consumer offerings, contributing to their success. Non-garden and gardening categories saw a surge of 18% year-on-year, driven by cafes and restaurants. The catering category experienced a 9% increase in sales, while the pet category and food and farm shop category grew by 21% and 13%, respectively. Despite a 9% dip in garden and gardening sales compared to July 2022, the plant sales category performed well.
The Market Updates also reported on inflation rates. Prices for weedkillers, plastic pots, BBQs and heating, and growing media observed notable inflation rates over the past year due to escalating input and ingredient costs. Growing media prices saw a 6% increase, responding to manufacturing expenses and the potential 2024 retail peat ban.
The HTA Market Updates provide valuable insights for members, helping them understand their positioning within the membership and identifying areas of resilience, challenges, and opportunities in the garden retail sector.