| A research report by “Plimsoll” has revealed a very worrying situation for UK garden centres in 2006. Research suggests that over half of the 500 most important garden centre retailers in the UK are in financial trouble following an accumulation of debt over the last 3 years. More than a third of these (about 176 garden center retailers) are classified as being in danger of financial ruin. In the last few years, garden centres have been facing a number of negative influences that include: bad and unpredictable weather (bad spring weather that stops consumers working in the garden and good autumn weather that has also changed consumer habits and reduced purchasing).. Costs continue to increase. Labour costs have just increased by 5%. This adds to heavy increases in energy costs, insurance policies and the administration costs associated with increasing bureaucracy that aims to protect staff and consumers. No less an influence is the increasing competition in the garden market from the supermarkes, DIY and multiple stores (GDO). The report entitled ‘Plimsoll Portfoglio Analysis – Garden Centres’ can be purchased from www.plimsoll.co.uk "Il Giardino" (RHS), Ottobre 2006 www.rhs.org.uk/publications |
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