The latest Monthly Market Update from the Horticultural Trades Association (HTA) reveals a sunny surprise for the UK garden retail market, igniting optimism for the sector as it approaches the final quarter of the year.
Laura Jeffery, HTA Market Research Manager, observes, “September 2023 continued the trend of uncharacteristic weather for the time of year, with 1.2 times more sunshine hours and temperatures almost two degrees warmer on average compared to the previous year. We can see from the report that this translated into an increase in garden retail sales, with the notable exception of weak sales of garden furniture.”
In a remarkable turn of events, overall sales and transactions surged by +8% compared to September 2022. Key categories such as garden tools and plants experienced robust performance as individuals commenced their autumn planting endeavors. This seasonal fervor also translated into notably strong bulb sales, registering an impressive +10% growth. Furthermore, the non-garden/gardening categories saw an +11% boost in sales compared to the previous year. The increased footfall into cafes and restaurants within garden centers, combined with transactions up by an astounding +19% compared to September 2022, further underscored the sector’s vitality.
Taking a broader perspective, the Consumer Confidence Index ascended by +4 points in September, marking a substantial +27 point improvement compared to the same period in 2022. Wage growth outpacing inflation earlier in the year, a first in two years, has likely contributed to an increase in disposable income and consumer confidence. However, this has also placed pressure on business overheads and recruitment efforts. Despite the surge in confidence, it is important to note that consumer confidence still resides in negative territory, with people grappling with elevated costs and financial uncertainty. The modest +1% increase in the value of shopping baskets, amid price inflation, suggests a possible preference for lower-value items compared to the previous year. Nevertheless, the report instills optimism, highlighting a more favorable market position than the preceding year.
As the garden retail industry marches forward, it remains adaptable and resilient, accommodating shifts in consumer behavior and economic conditions. The recent numbers for September and the preceding months indicate a positive conclusion to the year. However, businesses remain keenly aware of the fine balance between encouraging signs and persistent challenges. High input costs, especially energy expenses during the winter months, continue to affect their operations and customers.
In addition to the monthly update, the HTA has also recently unveiled a report exploring the Value of Plants. This comprehensive report combines extensive literature reviews on the value of plants with original research conducted among 2,000 consumers regarding their plant purchasing behaviors. The report reveals that consumers in the UK spend nearly £3 billion annually on plants and trees for their homes and gardens. Approximately half of this expenditure occurs in the country’s garden centers, which collectively receive around 200 million visits each year. These findings underscore the enduring allure of plants and greenery in people’s lives, making them an essential part of the retail landscape.