With peak season approaching, UK outdoor and garden merchants must understand shifting consumer finance trends. Exclusive Zopa Bank Retail Finance data shows more high earners using finance, bigger spending, and a strong preference for longer-term options. Adapting to these trends will be key to boosting sales and protecting margins.

Who is buying garden products on finance?

1. Millennials lead the way 

The biggest customer group using Retail Finance for outdoor and garden products are 31–40-year-olds, making up 35% of sales for the past two years. Millennials remain the dominant group in this space.

2. Spending trends on the rise 

The average Retail Finance order for UK outdoor and garden merchants reached £1095 in 2024, up 23% from £891 in 2023. With rising prices and increasing consumer demand, this trend is expected to hold as the sector enters its peak season in 2025. In Q3 2024 alone, spending on home and garden equipment hit approximately £2.1 billion.

3. Higher-income customers driving growth 

Retail finance is no longer just for lower-income shoppers. The income profile has shifted significantly:

• Customers earning £0-30k dropped from 40% in 2023 to 29% in 2024.
• 52% of financed purchases in 2024 were from customers earning £40k+, up from 38% in 2023.
• More shoppers now have stronger credit ratings—66% had a score above 627 in 2024, compared to 55% in 2023.

What finance options do customers want? 

12-month interest-free credit dominates, chosen by 70% of outdoor and garden customers in both 2023 and 2024. Shorter-term options are far less popular:

• 9-month interest-free: 15%
• 6-month interest-free: 10% (down 2.5% from 2023)

While interest-free credit remains king, most customers want to spread payments over at least 12 months. With standard Buy Now Pay Later (BNPL) options of 2-6 months no longer meeting this demand, merchants should consider offering longer-term finance to capture more sales.

Balancing profit margins and finance options

Offering interest-free credit can cut into profits, especially on lower-priced items like gazebos, deck chairs, and lighting. Many long-term finance providers set minimum spend thresholds. Merchants who bundle products into single credit agreements can increase order values and protect margins, while still catering to demand for longer-term finance.

As consumer preferences evolve, businesses must adapt to remain competitive in the outdoor and garden sector. Partnering with a Retail Finance provider who can help build and implement a sustainable strategy that can be adjusted to keep profits high is key.

Source: *This data has been exclusively shared by Zopa Bank Retail Finance in February 2025, which partners with merchants selling Outdoor and Garden products including Grass Warehouse and Dusk.