HTA report reveals that café sales rose in August
The report reveals that footfall is strong, but sales are down as customers select lower value items
Commenting on the report, Fran Barnes, Chief Executive of the HTA, says:"Once again, August's results underscore the resilience of our industry amidst the ever-shifting landscape of 2023. Garden centre sales overall grew by +3% compared to August 2022, and the number of transactions also grew by +8%, suggesting strong footfall levels, with robust growth in categories such as bulbs, bedding, and hardy plants, indicating that our plants continue to thrive and capture hearts within a nation of gardeners.
“However, we hear directly from the sector that concerns remain over unsold stock and continued economic uncertainty. Notably, garden furniture saw steeper discounts as retailers sought to clear excess stock with fewer dry days to tempt people outdoors. The sales were down by -42% last year and contributed to 8% of total sales for August, compared to 14% in August 2022.”
August’s Consumer Confidence Index recovered +5 points, showing consumers have more positivity for their future financial outlook. However, as consumers grapple with the ongoing cost-of-living crisis, they've become savvier shoppers, seeking savings amid rising expenses.
The constant success story of 2023 has been the non-garden/gardening categories, witnessing a +14% growth in August compared to the prior year. This vibrant activity extends to garden centre cafes and restaurants, where transaction numbers in catering spiked by +17%.
The report also sheds light on inflation rates within the industry. Over the 12 months leading up to August 2023, noticeable inflation rates were observed in various product categories, driven by escalating input and ingredient costs.
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