Rising Costs and a Summer of Extremes
Four months ago, I wrote about the growing pressures facing UK garden centres and questioned what might happen if strong trading could no longer mask rising costs.
Halfway through 2026, we’re starting to get an answer.
On the face of it, the sector is holding up remarkably well. Garden centre sales year to date remain just 1% behind 2025 and 7% ahead of 2024. Considering how strong 2025 was, that isn't a bad position to be in.
But the headline numbers don't tell the whole story.
The cost pressures I wrote about earlier this year haven't disappeared. If anything, geopolitical instability has continued to reinforce them, feeding through into fuel, freight, fertiliser and wider supply chain costs.
At the same time, employment and input costs remain high, consumer confidence is weak and businesses are trying to protect margins without simply passing every increase onto customers.
The difference now is that the weather isn't making life any easier.
When the weather stops playing ball
Weather influencing garden centre sales is hardly breaking news. There has always been a sweet spot. Warm and dry enough to get people outside and interested in their gardens, but not so hot that they would rather be anywhere other than walking around a garden centre. Too much rain keeps people at home. Extreme heat can do exactly the same thing. This year we've seen just how narrow that window can be.
June was the UK's second hottest on record, but also saw rain spread across considerably more days than the previous two years. Footfall fell and overall garden centre sales were 2% behind June 2025, while gardening sales were down 5%.
That has been followed by further extreme heat, exceptionally dry ground, drought conditions and water restrictions across parts of the country. For plant sales in particular, that's difficult.
Hard ground makes planting less appealing and hosepipe bans can create uncertainty around buying plants in the first place. Even where restrictions don't prevent customers from watering new purchases, the messaging alone can be enough to put people off.
For garden centres, there is also the added cost of maintaining plant quality through prolonged heat and the margin risk that comes with stock which can't simply sit on a shelf indefinitely. But perhaps one of the more interesting developments this year has been what's happening elsewhere in the garden centre.
Where the money is being spent
Year to date, gardening sales are 5% behind 2025. Non-gardening categories, meanwhile, are 5% ahead, with catering up 7%. That's significant.
The diversification of garden centres isn't a new trend, but years like this demonstrate why it's become so important. Plants and gardening remain at the heart of the industry, but restaurants, cafés, food, gifting, homeware and wider lifestyle retail give customers additional reasons to visit and spend. They also provide some protection when the weather works against traditional gardening categories. That doesn't make businesses immune to poor weather. Extreme heat can reduce overall footfall just as effectively as persistent rain.
What it does mean is that a garden centre is no longer completely reliant on customers deciding it's a good weekend to plant their garden. And in increasingly erratic conditions, that matters.
Less margin for bad decisions
The other thing 2026 is highlighting is the importance of good commercial decision making. When costs are rising and sales can swing significantly with the weather, there is less room to get buying wrong. Commit too heavily to a seasonal category and a change in conditions can leave you sitting on stock. Buy too cautiously and a strong trading period can disappear before you've had the opportunity to capitalise on it.
The same applies to pricing and margin.
Customers remain price conscious, so retailers can't simply pass every increase in labour, energy, freight or product costs straight down the line. Knowing where to protect margin, where to remain competitive and where customers will pay more for quality or experience is becoming increasingly important.
So is finding ways of generating footfall rather than relying on the weather to do it for you. Events, strong catering, destination retail, compelling seasonal displays, loyalty programmes and a genuinely good customer experience all give people another reason to make the trip. None of this is revolutionary garden retail strategy. But difficult trading conditions have a habit of making the basics much more important.
What does this mean for groups and independents?
Four months ago, I argued that the gap between larger groups and independents could widen as costs increased. I still think that's a risk, but halfway through the year the picture is perhaps more nuanced. Groups retain the obvious benefits of scale: buying power, centralised functions, investment capability and the ability to spread risk across multiple sites and revenue streams.
But independents have strengths too. The best can react quickly, understand their local market exceptionally well and make buying and commercial decisions without layers of central approval. In an unpredictable market, agility can be just as valuable as scale. The real divide may therefore be less about groups versus independents and more about which businesses are making the right decisions.
The second half of 2026
We're only halfway through the trading year, so there is plenty still to play for. What's encouraging is that garden centres have remained close to an exceptional 2025 despite everything thrown at them so far. But doing similar sales doesn't necessarily mean making similar money. That's the important distinction. Costs remain elevated, margins remain under pressure and the weather continues to make forecasting difficult.
For the remainder of 2026, I think success will increasingly come down to the things businesses can actually control: buying well, protecting margin, managing stock carefully and continuing to give customers reasons to visit even when the weather isn't playing ball. The first half of the year has shown the resilience is still there.
The challenge now is turning that resilience into profitability.