London, United Kingdom (PRWEB) April 22, 2013
Operators in the Garden Supply & Pet Food Stores industry retail pet food, pet accessories and gardening products including plants, seeds and soil treatments. The industry has dealt with a number of factors over the past five years that have resulted in an overall decline in revenue. The sustained recessionary economic conditions have led to a significant decrease in disposable income for consumers, who have subsequently reduced discretionary purchases. Pet owners faced with financial restrictions and the rising costs of utilities, food and transportation were forced to reduce expenditure on pet supplies. There has been a significant increase in pet abandonment over the past five years as owners face financial strains. The garden supply segments have also been influenced by the unusually bad weather, which has affected gardening activity and sales.
Over the five years through 2013-14, industry revenue is estimated to decrease at a compound annual rate of 3.3%. Operators have also been affected by greater internal competition from large chain stores that continue to dominate the market, and external competition primarily from supermarkets that offer similar products at cheaper prices. This competitive pressure has led to a contraction in profit margins and smaller enterprises have been forced to exit the industry. According to IBISWorld industry analyst Temitope Onabanjo, “the industry's poor performance has been mitigated by consumers with a great affection for their pets, and unwilling to cut back on pet expenditure”. The evolvement of gardening as a pastime activity and the growing interest surrounding eco-friendly products and homegrown vegetables are slowly placing the industry back on track. Industry revenue is expected to post slight growth of 1.9% in 2013-14, to reach £4.7 billion.
The industry is expected to stage a slow and steady recovery over the next five years in line with the eventual recovery of the UK economy. Onabanjo adds, “Growth is likely to be driven mainly by the growing population of pets and the ageing demographic which is expected to result a rising number of gardening hobbyists”. Industry revenue is forecast to return to growth over the five years through 2018-19. However, supermarkets and online retailers are expected to remain a significant threat, keeping growth rates subdued. Larger enterprises within the industry also pose a major threat to smaller independent stores and enterprise numbers are estimated to decline.
The Garden Supply & Pet Food Stores industry has a low level of market share concentration. The level of concentration measures the extent to which the top players dominate an industry. Major companies include Pets at Home and The Garden Centre Group.
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
Operators 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.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalisation & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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