GIMA Barometer of Trade highlights inevitable price rises

by | Sep 12, 2017 | News | 0 comments

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

more latest news ➡

Wellbeing at Pugh's Garden Centre

Wellbeing Winners at Pugh’s Garden Centre

Pugh’s Garden Centre is a well-known, and highly-regarded garden centre in South Wales. Set up by Sydney Pugh in the 1940’s, it originally started as a wholesale fruit and vegetable grower working from a nursery and selling from the gate. In the 1960’s, Sydney’s...

Cherry Lane acquires Norwich garden centre

Cherry Lane acquires Salhouse Garden Centre near Norwich

A garden centre on the outskirts of Norwich is under new ownership and it will be revamped over the coming months. The Cherry Lane group has acquired Salhouse Garden Centre in Honeycombe Road, which is its 18th site. It has garden centres throughout East...

job opportunity at Grimsby Garden Centre

Unique Garden Centre Business Manager opportunity

Grimsby Garden Centre is excited to share this opening for a Garden Centre Business Manager which is rewarding career opportunity that combines retail management with making a difference in the local community. As Grimsby Garden Centre is owned...

Prosper and Yorkshire Garden Centres part ways

Prosper Bidding Farewell to Yorkshire Garden Centres

Prosper, a leading buying group committed to supporting enterprise and growth within our industry, announces the departure of YGC, effective 30th September 2024. Terry Head Retail Director of Stewarts and Chairman of Prosper, stated, "YGC has been a supportive...

Kent & Stowe Autumn promotion

Kent & Stowe autumn promotion to help boost sales

Kent & Stowe, renowned for its high-quality gardening tools that help gardeners achieve extraordinary results has an array of enticing offers to support garden retailers this autumn. These promotions will encourage the nation to keep on gardening and ensure...

Yorkshire Garden Centres joins the Tillington Group

Yorkshire Garden Centres to join the Tillington Group

Yorkshire Garden Centres have announced that they are to join the Tillington Group.  The Bradford based business took over Tong Garden Centre in 2015 and now operate six centres across Yorkshire from the base at Tong. Mark Farnsworth, Managing Director of Yorkshire...

Dobbies charity appeal

Dobbies Garden Centres seeks new National Charity Partner

Dobbies has launched the search for its next National Charity Partner, as part of its 160th year celebrations. The new partnership will commence on 1 March 2025, following the conclusion of Dobbies’ successful nine-year collaboration with the Teenage Cancer Trust...

Banners for marketing

How Banners Generate Business for Garden Centres

In the verdant world of garden centres, where competition blooms as fiercely as the flowers on display, standing out is paramount to cultivating success. Amidst an array of advertising strategies, banners have emerged as a particularly potent tool for garden...

Read GCR's latest edition!

Subscribe ToThe Wednesday Word

Subscribe To
The Wednesday Word

 

Get all the latest news, events & more straight to your inbox every Wednesday.

You have Successfully Subscribed!

Pin It on Pinterest

Share This