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UK Garden Centre Spotlight 2023

14 days ago by

​As Garden Centre recruitment specialists, we're always looking for ways to keep ourselves up to date with the latest industry news.

Savills recently released a report 'UK Garden Centre Spotlight - 2023' we summarised the findings:

  • The garden centre sector in the UK has shown resilience, with consumer spending on gardening goods surpassing pre-pandemic levels. Moreover, operational costs have been affected by factors like wages, energy, and inflation, potentially impacting margins in 2023.

  • Garden centres are implementing strategies to adapt and diversify income streams. The investment market is active, with major brands acquiring smaller garden centre operators. Sale and leaseback structures are becoming more common for growth.

  • Sustainability and ESG considerations are gaining importance, leading garden centres to focus on reducing environmental impact, promoting circularity, and supporting community engagement and employee wellbeing.

  • The industry is depicted as adaptable and resilient, addressing current challenges while preparing for future growth and investment opportunities.

Here are some figures to highlight...

Garden Centre Industry in the UK:

  • There are 2,300 garden centres in the UK.

  • The largest garden centre chain is Dobbies with 80 sites, and the second largest is British Garden Centres with 62 sites.

Financial Performance:

  • The average turnover per square foot is £100.

  • Compared to 2019, the turnover per square foot was 86% in 2020, 107% in 2021, and 113% in 2022.

  • Wages account for 20-30% of the turnover.

Retail Inflation on Garden Products:

  • Foliage Houseplants increased by 8%.

  • Weedkiller increased by 9%.

  • Hardy Plants/Shrubs/Trees increased by 5%.

  • Plastic Pots increased by 12%.

  • Growing Media increased by 10%.

Concessions and Cafes:

  • The top concession is Maidenhead Aquatics with 62 stores, and the second top concession is Sainsbury's Food Hall with 54 stores.

  • Cafe contribution to turnover can be up to 20% at maximum.

Property Valuations:

  • 52% of properties saw a reduction or no change in rateable value as of April 2023.

  • The maximum increase in rateable value was +68%, and the maximum decrease was -196%.

Garden Centre Investments:

  • The yield range for garden centre investments is 5-6%.

  • The buyer profile of the ex-Wyevale portfolio is: Private Equity 26%, Public Sector 5%, Closed 9%, and Other 60%.

You can read the full report here

If you would like to have a conversation regarding your recruitment challenges or career goals within the Garden Centre retail industry, you can contact our Garden Centre team on 01780 480 530 or email info@morepeople.co.uk.