Published on 18 - June - 2012
Garden Centre Group plans more concessionsThe Garden Centre Group has revealed that it is looking to boost revenue by developing a strong presence of concessions in its stores to complement its core horticulture ranges.
Plants will provide a third of sales, and concessions a further third
Outlining the plans, Terra Firma, the investment company that bought the 129-strong-chain group earlier this year, said it would also be growing the estate through acquisitions and that new space may be identified for complementary retailers.
Terra Firma believes concessions can provide garden centres with guaranteed regular income, in addition to giving customers a reason to visit, regardless of the weather. CEO Nicholas Marshall said recently that he wanted to see TGCG - the UK's largest garden centre group - grow, with sales comprising "a third horticulture, a third catering and a third concessions".
In a letter to investors explaining the new plans, Terra Firma chairman Guy Hands says: "TGCG is the UK's largest specialist retailer of plants and garden care products and is a classic Terra Firma deal. It has the leading position in a £5bn per annum market that is very fragmented and has good long-term growth prospects.
"Gardening is part of the British culture and appeals particularly to an older demographic. Because this demographic views garden centres as a good value, healthy leisure activity, spending at garden centres is considerably less volatile than UK consumer spending overall."
"We intend to sharpen TGCG's focus in its core garden business while growing a steady concession-based income stream...We will also grow the estate through acquisitions."
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