The UK’s garden centre market is currently in full bloom, with more than 145 of the properties selling in just over a year. In fact, the Wyevale portfolio sale in 2019 was the largest ever garden centre sector disposal, with several selling as individual assets to individual buyers.

Many purchasers saw the benefit of acquiring a business that would profit from growing demand for leisure assets, while other centres have sold for an alternative use or potential redevelopment. The majority, however, will reopen as garden centres, with a number of well-known operators including Hilliers, Blue Diamond, British Garden Centres and Dobbies (who were by far the most prolific purchasers) taking the opportunity to substantially expand their portfolios.

Terra Firma, Wyevale’s previous owner, had stated that it wished to sell all of its garden centres within a reasonable timescale and it needn’t have worried. The final 22 were scooped up by British Garden Centres in early September, less than 12 months after hitting the market.

The sell-off created an unprecedented opportunity for new operators, including lifestyle purchasers, to enter this unique market. However, this foray into flora is likely to pose challenges for some. Rapid growth will, in some instances, double management responsibilities, increase investment in staff, buildings and new product ranges, which will all have to pay off in bigger turnover and profit.

Having assisted in the acquisition of around a third of ex-Wyevale centres, Savills expects further consolidation over the next few years with continued purchases, partnerships and alliances, particularly when it comes to the medium sized and larger groups.

This is partly due to the burgeoning popularity of garden centres, with many seeing them as shopping destinations. It is not difficult to see the appeal, with food and beverage offers, a wide range of retail outlets and a pleasant environment with adjacent car parking often making them preferable to the hassle of the high street.

From a business perspective, garden centre franchises can take advantage of lower business rates (which are often linked to turnover and therefore more affordable), wages, greater purchasing power and general overheads, making them an attractive proposition for operators.

There is also no doubt that garden centres have benefited from recent social trends, including the boom in experience-led leisure and growing environmental concerns, with an ageing population also playing its part. With all this in mind, it’s clear that the sector has a particularly sunny outlook with far more room to grow.

Further information

Read more: Aspects of Leisure