Industry Analysis & Industry Trends
Declining revenue, slim profit margins and exiting operators have characterized the Nursery and Garden Stores industry over the five years to 2015. While demand for discretionary nursery and garden products has improved since the economic downturn, intense price-based competition from home improvement stores and mass merchandisers has limited the benefits accrued by the industry. As a result, revenue has declined throughout most of the period, and both employment and establishment figures have dropped. These trends will continue in the five years to 2020, exacerbated by slowing growth in the population aged 50 and over, the industry's largest market... purchase to read more
Industry Report - Industry Investment Chapter
The Nursery and Garden Stores industry has a moderate level of capital intensity. IBISWorld estimates that for every dollar spent on wages, industry operators will invest $0.12 in capital. Capital investment is mainly in the use of sprinkler systems, greenhouses and humidity controls. Since the recession, companies delayed upgrading their greenhouses and control systems in an effort to cut operating expenses. Lower depreciatory costs have also been due to a decline in the number of industry establishments, which has fallen at an annualized rate of 2.1%.
Industry operators also reduced labor expenses over the past five years. The number of employees in the industry fell over the period, declining at an average annual rate of 1.1%... purchase to read more