Industry Analysis & Industry Trends
Competition stunts growth
Nursery and garden stores have faced strong competition from home improvement stores and mass retailers, and the next few years will be no different. Despite improving disposable incomes and home improvement budgets, consumers will increasingly favor large, low-cost retailers to specialty garden stores for their competitive prices and convenient one-stop-shop formats. To stay afloat, some operators will source more of their inputs from low-cost countries to improve profit, while others will focus on developing their own exclusive plant varieties... purchase to read more
Industry Report - Industry Investment Chapter
Capital intensity has increased over the past five years as garden centers have cut back on employment to save money. In fact, for every dollar spent on wages, operators spend $0.19 on capital investments. In 2007, nurseries spent only $0.14 on capital equipment for each dollar of labor. The combination of a smaller work force and lower average wages has decreased overall labor costs to industry participants.
Capital expenditures include the use of sprinkler systems, greenhouses and humidity controls. Currently, human labor is required to tend to nursery and garden stock. However, as technology advances, the need for human intervention in plant maintenance will decrease... purchase to read more