Garden Supply & Pet Food Stores in the UK Industry Market Research Report Now Updated by IBISWorld

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The past five years have been characterised by the financial crisis, which decimated economies around the globe, including that of the United Kingdom. As demand for garden supply, pets and pet food products are closely correlated with the state of the macro economy, the industry has suffered. Discretionary spending and consumer confidence remained low over 2008-09 to 2011-12, which caused sales to decline. Consequently, industry revenue contracted at an annualised 11.2% over the five years to 2012-13, to £4.47 billion. Industry sales were also affected by greater competition from supermarkets and large retailers offering the market similar products at lower prices, afforded through economies of scale. IBISWorld expects the United Kingdom to stage a slow but steady recovery from the financial crisis over the next five years. As a consequence, discretionary spending will grow and this will bode well for garden supply and pet food retailers. The continuing growth in the UK's pet population will ensure registers keep ringing as more pets will necessitate greater expenditure on pet food and accessories. Supermarkets and large retailers will continue to pose a threat, as will e-commerce. Industry revenue is anticipated to grow marginally over the five years through 2017-18. For these reasons, industry research firm IBISWorld has updated its report on the Garden Supply & Pet Food Stores industry.

IBISWorld Market Research

IBISWorld Market Research

Spending on pets will increase, while supermarkets pose strong competition

The past five years have been characterised by the financial crisis, which decimated economies around the globe, including that of the United Kingdom. As demand for garden supply, pets and pet food products are closely correlated with the state of the macro economy, the Garden Supply & Pet Food Stores industry has suffered. Discretionary spending and consumer confidence remained low over 2008-09 to 2011-12, which caused sales to decline. The low levels were a result of government cuts and deteriorating economic conditions abroad, such as the ongoing debt crisis in Greece. Consequently, industry revenue contracted at an annualised 11.2% over the five years to 2012-13, to £4.47 billion. According to IBISWorld industry analyst Kiera Outlaw, “industry sales were also affected by greater competition from supermarkets and large retailers offering the market similar products at lower prices, afforded through economies of scale”. Declining profitability caused businesses to tighten their budgets, this led to a fall in spending on fresh flowers, bouquets and floral arrangements. Lower household wealth resulted in a slowdown in pet purchases, which constrained growth in the sale of pet food and accessories product markets.
IBISWorld expects the United Kingdom to stage a slow but steady recovery from the financial crisis over the next five years. This will mean the industry will benefit from lower unemployment, an upturn in asset prices and higher general household wealth. As a consequence, discretionary spending will grow and this will bode well for garden supply and pet food retailers. Outlaw adds, “the continuing growth in the UK's pet population will ensure registers keep ringing as more pets will necessitate greater expenditure on pet food and accessories”. Supermarkets and large retailers will continue to pose a threat, as will e-commerce. Industry revenue is anticipated to grow marginally over the five years through 2017-18.
Although the Garden Supply & Pet Foods Stores industry does have two major players, Pets at Home and the Garden Centre Group, their combined market share only accounts for an estimated 17.4% of industry revenue giving the industry a low level of market share concentration. The industry is highly fragmented and is mainly characterised by small enterprises. Most of the enterprises are family owned businesses, small franchises, small chains, proprietorships or partnerships
For more information on the Garden Supply & Pet Food Stores industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.

IBISWorld industry Report Key Topics

Establishments in the industry sell flowers, garden supplies, pets and pet food and supplies. The pet operations of the industry involve the sale of pets, such as dogs, cats, fish and birds. Enterprises also sell pet food and pet supplies, including collars, leashes, toys and medication. Garden supply retailers sell flowers and garden supplies directly to the public, including equipment, fertilisers, chemicals and other soil treatment products.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalisation & 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

About IBISWorld
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on many UK industries. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in London, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.co.uk or call (020) 3008 6568.

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