September 21, 2017

Latest:

Smart Garden’s new Flamboya brand sets the industry standard in garden décor -

Thursday, September 21, 2017

GCA Barometer of Trade – Seed and bulb sales soar in August -

Thursday, September 21, 2017

Bents reveal new look for gift department -

Wednesday, September 20, 2017

Fish4Dogs – Could you be a Fishionary? -

Wednesday, September 20, 2017

National Trust Wildlife products launched at GLEE 2017 -

Wednesday, September 20, 2017

Squire’s shortlisted for ‘Best Garden Centre’ by the Express -

Wednesday, September 20, 2017

SBM Life Science: Solabiol – In tune with nature -

Wednesday, September 20, 2017

Hozelock launch new Classic Hose Connector -

Tuesday, September 19, 2017

Stax grows garden offering through distribution deal with E.P. Barrus -

Tuesday, September 19, 2017

Nicholas Marshall joins HTA Garden Futures Conference 2017 line-up -

Tuesday, September 19, 2017

Darlac’s new collections hailed a success -

Tuesday, September 19, 2017

Notcutts group report increased annual sales and profits -

Tuesday, September 19, 2017

Good news for Zest 4 Leisure with new product launches and exciting developments set for 2018 -

Monday, September 18, 2017

Barrus celebrates its 100 year anniversary -

Monday, September 18, 2017

Russian trade visitors at GrootGroenPlus 2017 -

Monday, September 18, 2017

Shruti Designs brings fashion accessories to RHS licensing programme -

Sunday, September 17, 2017

News brands and new products from SBM Life Science -

Saturday, September 16, 2017

Stax and Paroh put pen to paper and agree national distribution deal -

Saturday, September 16, 2017

New president for the HTA -

Friday, September 15, 2017

GIMA Innovators’ Seed Corn Fund 2017 awarded to bio-bean -

Friday, September 15, 2017

GIMA Barometer of Trade highlights inevitable price rises

GIMA
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GIMA’s latest Barometer of Trade, a report that provides overall market analysis through information supplied via members, has highlighted that cost increases are set to become more prevalent. Here the trade association, representing manufacturers within the garden retail industry, shares further insight into these latest findings, and explains what this might mean for the industry.
Now in its third year, the latest edition highlights alarming trends in percentage increases for all base costs, highlighting an entirely unavoidable state of affairs for the industry.
Raw materials have risen in excess of 13% in the last 12 months, with a 5% increase witnessed since the beginning of 2017. This ongoing upsurge could potentially have a negative impact on innovation, with aspects such as packaging, product size and colour becoming the new benchmark for ‘innovation’. . ‘Safe’ products that do little to stimulate shoppers’ interest in the sector as a whole could also become more prevalent if costs continue to keep rising at the same rate.
Freight and logistics services are not exempt from increasing costs, something that will only place further pressure at peak times. GIMA members who participated in the Barometer of Trade have highlighted that importing goods into the UK has been subject to 5% increase in freight costs during the first half of 2017; that is on top of the 5.2% increase in the second half of 2016. Landed rates are also causing concern with a staggering 17% increase in the last 12 months.
Within just this first half of 2017, labour costs have also continued to rise – up a further 4.5%, already outstripping the 4.40% increase experienced in the latter part of 2016. Although some of this can be simply attributed to an increase in minimum wage, and the introduction of the living wage in April 2016, the exchange rate still has a part to play as workers from the EU and other countries look outside the UK for more lucrative seasonal working locations. Admittedly, retailers will also be subject to similar cost rises, but this only means a doubled increase – something that has to be passed onto the consumer.
Vicky Nuttall, GIMA Director, said: “I appreciate that these numbers look slightly daunting, especially when looking at the longterm picture, but it’s not all doom and gloom. We all exist within a buoyant and growing market. Garden centres are continuing to grab market share through ongoing diversification, and our latest research has reflected this. In fact, during the first half of 2017, 63% of respondents reported that they expected some form of improvement, with an additional 20% expecting prospects to greatly improve. Whatsmore, despite the challenges we all face, there is still a marked determination to break through and make the changes that will help safeguard the industry for the future. I’ve no doubt together we will continue to thrive despite larger price tags.”
The Barometer of Trade relies on a wide variety of information given anonymously by participating GIMA members. If you are interested in getting involved in the reports, please contact the GIMA office on 01959 564947 or info@gima.org.uk

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