Britain is a nation obsessed with homes and gardens, and garden centres have increasingly become an attractive asset class for investors.

With a trading property, profit generation and security of income are the key factors for investors and garden centres have qualities that make them ripe for investment. For example, garden centres attract an older age group, a target market that is set to grow due to the UK’s ageing population. Shoppers are also likely to be homeowners, putting the target customers in a more affluent category. Furthermore, the financial performance of garden centres tends to be more resistant to changes in the economy than standard high street retail, which is assisted by the variety of profit centres they offer on site, including cafés and restaurants.

There is strong demand for well-located, good-sized garden centres, particularly from the chain operators and independents who are actively expanding and prepared to pay good sums for businesses with significant potential.

Garden Centres, compared with the general retail and leisure market, remain disproportionally controlled and owned by independent operators and family businesses. The sector has a few larger chains, notably Wyevale, Notcutts, Squires and Blue Diamond, amongst others. The general disparate nature of the market place suggests potential for others to enter the market, further increasing demand and driving growth and we are aware of a number of operators keen to identify new sites.

We anticipate further consolidation in the garden centre market over the next few years, with continued acquisitions, partnerships and alliances. We also expect to see operators taking advantage of the strong economy and making further purchases and expansion in the coming 12 months.

Further information

Contact Savills Retail and Leisure