While the latest Horticultural Trades Association (HTA) Market Update for December 2024 shows a 1% decline in overall garden centre sales compared to December 2023, the 2024 calendar year ended a modest 2% up on 2023 full-year results.
This is despite the many challenges our garden centres faced. December figures were impacted by Christmas sales being pulled forward into November, and it was also marked by milder weather, ranking as the 4th dullest and 5th warmest December on record. This was a continuing trend of unpredictable weather throughout the year. With a cool summer, wet spring and autumn, and a mild winter, 2024 is ranked as the 4th warmest year in the UK on record.
Fran Barnes, Chief Executive of the HTA, commented: “December’s mild weather capped off a year full of challenges for garden centres, with unpredictable weather impacting core categories. Christmas sales held steady, accounting for 26% of the total store sales, and full-year 2024 Christmas sales were up +7%, removing the impact of the sales pulled forward into November. Within this, artificial trees saw a 14% increase in December and +11% for the full calendar year —likely driven by replacement cycles and cost-effectiveness. However, garden and gardening sales fell 4% across 2024 as a whole, as inconsistent performance in key plant categories reflected the tough trading environment.
"Catering continued to provide a bright spot for garden centres, with sales up 11% year-on-year, while non-garden categories grew by 6%. Despite a slight 1-point increase in consumer confidence, the general economic situation remained unchanged, and large purchases were less frequent.
"This month’s update also offers a year-in-review, highlighting the unpredictability of the weather and the highs and lows of 2024. An Early Easter in March led to a 17% sales boost, but this was followed by a wet and cool garden season, with the spring and summer months seeing declines. Christmas sales were pulled forward into November, aided by the month ending on a weekend with five Saturdays, influencing the December performance. The overall trends highlight the importance of diversifying offerings and maintaining customer engagement in the face of external challenges.
“Looking ahead to 2025, I’m sure we will continue to see garden centres growing as vital community hubs, providing exceptional products and experiences. We remain optimistic about their continued success as we hope for more favourable weather conditions. However, with the Autumn Budget National Insurance and Wage hikes alone imposing a £134 million cost burden on the horticulture sector, garden centres face tough decisions on how to mitigate costs. Increased energy, transport, and labour costs, combined with rising National Living Wage rates, are placing significant strain on businesses—particularly those reliant on seasonal and part-time workers.
“These financial pressures, compounded by ongoing economic uncertainty, will likely impact consumer spending and present challenges for garden centres in the coming year. We remain committed to advocating for immediate government support to help our sector navigate these difficult times. We are asking the Chancellor to pause for consultation on the impact of all these changes from the autumn budget and work with us on solutions which help the sector grow.”
HTA members can view further insights in this month’s Market Update on the website.
