Seed of doubt: Strong external competition has constrained revenue and caused profit to fall

The Garden Supplies Retailing industry captures about half of all garden supplies retail sales in Australia, with the balance generated by competitors operating hardware stores such as Bunnings, discount department stores such as Kmart, and supermarkets such as Coles and Woolworths. Long-term demand for garden supplies is influenced by trends in residential building activity, households' capacity for discretionary spending and annual rainfall levels. Reduced rainfall often corresponds with water restrictions, and weaker demand for traditional plants and lawn seeds. However, low rainfall can also stimulate sales of drought-tolerant plants and water tanks.Industry revenue is expected to grow at a marginal annualised 0.9% over the five years through 2018-19, to reach $2.6 billion...read more.

Industry Statistics & Market Size
Revenue
$3bn
Annual Growth 14-19
0.9%
Forecast Growth 19-24
Profit
Employment
10,100
Businesses
2,265
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Weak trends in housing construction and household income have dampened industry sales
  • Garden supplies retailers have faced increasing external competition over the past five years
  • Ongoing competition from major hardware retail chains is expected to cause profitability declines
  • Industry Report - Industry Products Chapter

    The industry derives just under half its revenue from selling plants, with the balance derived from garden accessories, plant food, insecticides and ornaments.Trees, shrubs and plantsThe industry is expected to derive 48.6% of its revenue from sales of trees, shrubs and plants. This share has gradually declined over the past five years as households have spent more on garden ornaments. Plants are discretionary goods and are therefore sensitive to household discretionary incomes. New housing construction has increasingly favoured multi-unit apartments, dampening plant sales but stimulating demand for vertical gardens and other innovative planting systems.Changing weather patterns and garden trends have also altered consumer demand over the past five years. Hou...purchase to read more.

    Additional Insights for the Garden Supplies Retailing Industry

    IBISWorld has determined the most important Key Success Factors for the Garden Supplies Retailing are:

  • Ability to control stock on hand
  • Proximity to key markets
  • Having a good technical knowledge of the product
  • IBISWorld analysts also discuss how external factors such as Level of annual rainfall and Demand from gardening services in the Garden Supplies Retailing industry impact industry performance..

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    What's in this report

    What is the Garden Supplies Retailing Industry?

    Industry operators sell garden supplies or nursery goods such as seedlings, bulbs, shrubs, trees, pesticides, fertilisers and other nursery stock. These goods are largely purchased from wholesalers and sold directly to consumers online or through retail outlets. Retailers that primarily sell cut flowers are excluded from the industry.

    Industry Products
  • Trees, shrubs and plants
  • Gardening supplies
  • Other gardening products
  • Industry Activities
  • Fertilisers and pesticide retailing
  • Nursery stock and ornament retailing
  • Potted plant retailing
  • Seedling and bulb retailing
  • Shrub and tree retailing
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Level of annual rainfall
  • Demand from gardening services
  • Dwelling commencements
  • Real household discretionary income
  • Consumer sentiment index
  • Demand from house construction

  • Current Performance
  • Sales trends
  • Strong competition
  • Garden trends
  • Profit and consolidation
  • Chart: Revenue Growth

  • Industry Outlook
  • Sales and gardening trends
  • Strong competition
  • Table: Garden Supplies Retailing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Garden Supplies Retailing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Professional Services
  • Consumers

  • Key Selling Industries
  • Ceramic Product Manufacturing
  • Hardware Wholesaling
  • Kitchen and Diningware Wholesaling
  • Livestock and Other Agricultural Supplies Wholesaling
  • Nursery Production

  • Products & Services
  • Trees, shrubs and plants
  • Gardening supplies
  • Other gardening products
  • Chart: Garden Supplies Retailing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • People aged 35 to 54
  • People aged 55 to 64
  • People aged 65 and over
  • People aged 15 to 34
  • Businesses and farmers
  • Chart: Major Market Segmentation for the Garden Supplies Retailing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Rent and depreciation
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Garden Supplies Retailing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Garden Supplies Retailing Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Garden Supplies Retailing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Garden Supplies Retailing Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Diy
  • Do-it-yourself.
  • Pos Systems
  • Point of sale system used by the retailer to complete a transaction. This can include EFTPOS machines, barcode scanners, weighing scales, touch screen terminals and self-scan checkouts.
  • Rfid
  • Radio-frequency identification involves an object or tag being attached to a product, person or animal, for the purpose of tracking and identification using radio waves.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Garden Supplies Retailing market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Garden Supplies Retailing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Garden Supplies Retailing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Garden Supplies Retailing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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