Garden centre sales dry up in hosepipe ban
Productivity review shows falls in other sectors, writes Samantha McCaughren
THE hosepipe ban turned people off gardening in July, which resulted in a fall off in sales at garden centres, according to new figures.
The Grant Thornton/ Retail Excellence review of quarter three showed that garden centre sales fell 2.28pc in the month, as gardeners cut back on activities. Overall like-for-like sales were up just under 1pc for the three-month period, with Retail Excellence claiming extra spending was driven mainly by a boost to grocery sales.
“If grocery sales growth is removed from the equation, the Irish retail industry is experiencing like-for-like declines,” said Retail Excellence group CEO David Fitzsimons.
Grocery sales experienced robust growth over the period due to exceptional hot weather and a resulting boost in the sale of alcohol, soft drinks and frozen confectionery. August was the most productive month, with the football World Cup driving grocery sales, and brown goods (televisions and sound systems) showing a 4pc jump in July in advance of the event.
Fitzsimons sounded a note of concern about spending in the coming months. “The outlook is concerning for Irish retail, especially so after the delivery of Budget 2019 which delivered little for the domestic economy.”
THE hot weather boosted grocery sales in the last quarter but left other retail segments in the shade, according to the Grant Thornton/Retail Excellence Retail Productivity Review.
A number of segments experienced year-onyear declines for the months of July, August and September, with footwear, children’s wear, lingerie, and pharmacy all down on 2017. IT sales saw a particularly sharp decline in the period, with people buying less frequently and spending less when they do buy devices and PCs.
“Quarter three 2018 proved a challenging period for the Irish retail industry. While revenue trended marginally up at 0.87pc, if grocery sales growth is removed from the equation, the Irish retail industry is experiencing like-for-like declines,” said Retail Excellence group chief executive David Fitzsimons.
He said grocery sales enjoyed “robust growth” over the period due to the hot weather resulting in a boost in the sale of alcohol, soft drinks and ice creams. Grocery sales were up 3pc for the three months.
“August was the most productive month in the quarter with the football World Cup driving grocery sales and brown goods (such as TVs) showing a 4pc jump in July in advance of the event.
“The heatwave in July led to a hosepipe ban which, in turn, resulted in like-for-like garden centre sales declines of -2.28pc, as gardeners stayed away from their gardening duties.”
Investment in the home is a strong trend with furniture and flooring up 5.54pc over the period, with August proving to be the best month in the quarter. While garden centre sales took a hit in July, they strongly rebounded in August and September, ending the quarter up almost 7pc. Gift and homeware sales were also up.
Jewellery sales were flat and while ladies fashion was down in July in August, it picked up well in September.
Research company GfK analysed spending on technology and appliances, and found that while small appliances did well, computing and camera phones have experienced a strong downward trend.
“Desktop computing fell in value by 18pc as volume fell by 23pc, while mobile computing also fell in value by 18pc, against a volume decline of 11pc,” said the report. “Tablets saw a decline of 11pc in terms of value against a 9pc drop in volume. This means that for both mobile computing and tablets, not only has volume declined, but the average price has also declined, meaning consumers are buying less, and spending less when they do buy.”
IT/computing sales were down 16pc and digital camera sales were down 22pc.