Garden Centre
Friday, June 22, 2007
Gardening in the news
According to this research, British homeowners spent around £4 billion on plants, furniture and gardening equipment in 2006 and – in part – this boom in garden improvements is being driven by the trend for outdoor eating and entertainment.
But that’s not all. And as reported in The Independent, garden centres have endured massive change over the past decade, moving from stores where the serious enthusiast would purchase their specialist plants and supplies into leisure destinations for the whole family, offering food, clothing and entertainment centres.
Sir Tom Hunter was one of the first to see the huge potential in this industry and last year snapped up Wyevale, the UK's biggest garden centre chain, for £310m. Now Tesco is aiming to get into the horticultural trade, by purchasing Dobbies for £228m. However, Sir Tom appears to be aiming to stop the Tesco juggernaut in its tracks – he’s increased his stake in Dobbies to 20.6 per cent. Tim Briercliffe, director of business development at the Horticultural Trades Association is surprised a move by a large retailer didn’t come sooner. "They have seen the big potential, but because the industry is so fragmented it makes it difficult and messy to come in and buy up a lot of little shops," he said.
So we may see more supermarket style plant-selling in the near future. But there’s a downside to this. Bunny Guinness, interviewed on Radio Four, had serious concerns, “People don't realise how serious this is going to be, and consumers will get hit in the end, Tesco is likely to bring in plants and even its cut flower business from places such as China and eastern Europe where they can buy in bulk cheaply. Plants are grown as quickly as possible in polythene tunnels and fully protected environments to maximise profits. But when they are transferred to UK gardens, they are completely unprepared for British conditions. Many don't survive. Gardeners and customers need hardy plants that will survive when they take them home - not just long enough for people to hand over their cash. Buying plants for your home is not like buying a bag of sugar; customers like to get advice and growing tips. Will Tesco be able to do that?”
Will they indeed – we may find out soon!
Labels: Dobbies, garden news, garden research, tesco takeover, Wyvale
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