Nursery and Garden Stores in the US Industry Market Research Report Now Available from IBISWorld

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IBISWorld Market Research

Continuing competition from low-cost home improvement retailers will stifle growth

Los Angeles, CA (PRWEB) June 26, 2012

External competition, low household incomes and fewer gardens have spelled disaster for the Nursery and Garden Stores industry over the five years to 2012. The period has been defined by declining revenue, dwindling profit margins and exiting operators. Prior to the recession, competition from alternative retailers, including home improvement stores and mass merchandisers, pulled customers away from traditional nurseries and pushed retail prices down. “When the recession took hold in 2008, the industry suffered further, experiencing drastic revenue drops,” according to IBISWorld industry analyst Justin Waterman. “A rising number of foreclosures, escalating unemployment and little spending cash diminished downstream demand.”

With industry revenue expected to fall at an average annual rate of 4.0% during the five years to 2012, participants have found it difficult to sustain profit margins and operations. “As price competition intensifies and demand from consumers dies down, nurseries and garden stores are closing up shop,” adds Waterman. Between 2007 and 2012, the number of industry participants has declined at an average annual rate of 1.8% to 11,593. The Nursery and Garden Stores industry is highly fragmented. Most firms employ fewer than 20 people, indicating the small scale of the average operation. The industry is home to many area-specific retailers that service only a specified geographic market. As such, no single firm holds a significant amount of the market. Additionally, the increasing level of external competition from alternative garden supplies retailers is forcing small nursery and garden stores out of the industry.

In the same vein as the past five years, in 2012, IBISWorld expects revenue to decline 0.5% to $27.1 billion. While spending on home improvements is increasing, consumers are seeking out the best deals and making low-value purchases. Rising external competition will likely tarnish the Nursery and Garden Stores industry even further, with revenue anticipated to decline. The declining unemployment rate will lead to higher disposable incomes, spurring demand for home improvement projects and purchases. Nevertheless, budget-minded and time-pressed consumers will continue shopping at lower-priced one-stop-shop retailers like the Home Depot and Walmart, stifling industry growth with still-high competition. Over the five years to 2017, IBISWorld forecasts revenue will decline further. For more information, visit IBISWorld’s Nursery and Garden Stores in the US industry report page.

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IBISWorld industry Report Key Topics

Nursery and garden stores sell a broad range of nursery and garden products including trees, shrubs, plants, seeds and sod. Also included in the industry are stores retailing farm supplies such as animal feed (excluding pet food). This retail industry not only serves households but also satisfies the needs of the farming community.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

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