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Garden centres plot further growth

Branches everywhere Garden centres are big business – so big that one operator chose not to cash in on a potentially lucrative connection with a very famous young wizard. Noella Pio Kivlehan goes digging

When US cinema studio giant Warner Bros asked Dobbies Garden World if it could use its name in a film about a very famous boy wizard, the only answer the movie moguls were hoping for was “yes”.

“We could possibly have made some money out of it,” admits Dobbies chief executive James Barnes, “but we couldn’t do that.” So the young mage was able to use the book-name of the troublesome house-elf Dobby when he made his appearance in the big-screen version of Harry Potter and the Chamber of Secrets.

Extra cash is always handy, but Dobbies certainly didn’t need the extra publicity. It is already well known within the garden centre world, being the second-largest in the UK behind Wyevale.

The growth of the garden centre is itself something of a Hollywood story. There are now an estimated 2,500 centres of varying size throughout the UK, which attract an annual spend of £5.6bn.

Given the statistics, some companies have substantial plans to grow. Scotland-based Dobbies has 19 sites, 11 in Scotland and eight in England, and has already identified a further 100 potential sites across the UK, clustered around major cities.

A planning application has already gone in for a 10-acre (4ha) site near Lisburn in Northern Ireland, while expansion into the Republic of Ireland has not been ruled out.

Wyevale, which is way out front with 114 centres, has plans to develop some of its existing sites, while the third-largest operator, Blooms of Bressingham, with 10 centres, is set to redevelop its 26-acre (10.5ha) site at Bicester, Oxfordshire, among others.

Despite some in the market believing that the future is more about refurbishment than expansion of these centres, one common denominator driving the growth is their diversification. Today’s garden centres are set aside from those at B&Q because they are rapidly turning into destinations not only for the garden enthusiast, but for the casual shopper looking for a relaxing day out.

Eateries are big business, with independent centres – such as at Petersham Nurseries in Richmond upon Thames – containing award-winning cafés. Activities are also gaining in importance. Dobbies’ centre at Atherstone, Warwickshire, has the world’s largest permanent maze, while a number have education centres – otherwise known as “plant interpretation” centres.

Dobbies’ Barnes says the average shopper spends up to four hours at a garden centre, and that “big impulse purchases” are common. So popular are the centres that they no longer close during what used to be the quiet months of December and January.

This is music to the ears of the big retail brands in this age of government restrictions on out-of-town schemes. While, inevitably, there are planning restrictions, and garden centres cannot just be seen as new retail parks, Andrew Hamilton of Hammond Phillips says: “If a garden centre planning application goes up against a retail park application, some authorities believe it’s not going to impact as much. It’s a lot softer use, in terms of heavy landscaping.” And it is cheaper space. “Most retail parks’ rent is up to £30 per sq ft; at garden centres, it’s between £15 and £20 per sq ft,” says Hamilton. But they need to tie in brands – bringing the “indoors outdoors and outdoors indoors”, as Barnes puts it.

Laura Ashley already has a unit at Blooms just off junction 12 of the M5 at Gloucester. This was an old site already owned by Blooms that was totally redeveloped, increasing its retail capacity. Cotswold World, Cotton Traders and Rohan have also taken units in similar centres up and down the country. Barnes admits that Dobbies has been approached by Cotswold World and Laura Ashley, although he won’t be drawn on how far these discussions have gone.

“Garden centres attract so many different types of retailers,” says Hamilton. “These can range from aquatics to gifts to china and glassware companies – and farm food shops, to the more obvious plants.”

At Blooms’ £10m Bicester development, next to Value Retail’s factory outlet, Borders is said to be looking into taking a unit. Such is the potential of the sector that there is considerable consolidation, with the larger companies seeking to buy small independent companies. Investors are also starting to show an increasing awareness in the centres.

If the sector continues to grow, maybe it will be Harry Potter and the Ever-growing Garden Centre coming to a cinema near you.

HOW DOES THE GARDEN GROW?

Garden centres fall under the premise of sui generis, which means they are under a restricted A1 consent. This allows the sale of associated goods, but not electrical items or solely fashion. There is a restriction on the size of the unit, and this depends on the site and what the operator wants on it.

Planners have been known to be more favourable to garden centres, but they are still wary of them becoming out-of-town retail parks. Brownfield and greenfield sites are adaptable.

Dobbies chief executive James Barnes says his firm requires brown- or greenfield sites of 5-6 acres (2-2.4ha). The company prefers new build to existing, and is looking at sustainable developments.

               

                

                  

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