Industry Analysis & Industry Trends
The past five years have been characterised by the global financial crisis, which decimated economies around the globe, including that of the United Kingdom. As demand for garden supply, pets and pet food products is closely correlated with the state of the macroeconomy, the industry has suffered.
Discretionary spending and consumer confidence remained low over 2008-09 to 2010-11, which caused sales to decline. Consequently, industry revenue declined by 9.0% over the five years to 2011-12, to £4.34 billion.
Industry sales were also affected by greater competition from supermarkets and large retailers offering the market similar products at lower prices, afforded through economies of scale... purchase to read more
Industry Report - Industry Investment Chapter
As the industry operates within retail, there is a heavy reliance on customer service and satisfaction. As such, the Garden Supply and Pet Food Stores industry is regarded as being labour-intensive, requiring the employment of well-trained and knowledgeable staff with excellent customer service skills. Besides their involvement in handling and processing sales, labour is required to restock shelves, create floral arrangements and displays, manage inventory and provide customers with advice and assistance.
Labour costs, estimated to account for 14.3% of total revenue, are accounted for by the industry's wage expense. Meanwhile, capital expenses are represented by the industry's depreciation expense, accounting for 1.6% of total revenue... purchase to read more