The market update, which covers the period up to the end of June, captures the performance across all Horticultural Trades Association (HTA) and Association of Professional Landscapers (APL) members, which includes retailers, growers, landscapers, and manufacturers.
The August HTA Market Update revealed that the total transactions for July reached a three-year high, with a 4% increase compared to the same period last year. Nevertheless, the average expenditure remained consistent at £26.37 (excluding VAT), suggesting an increase in foot traffic, as opposed to a rise in individual spending.
Gardening product sales remained largely stable, with revenue increasing by +4% compared to July 2024. Garden furniture was the main driver of growth, soaring by +42% from a relatively weaker July 2024. Expectedly, considering the dry conditions and outdoor plant sales struggled.
In terms of performance, the update showed that HTA members were on average only -0.1% behind sales budget and -0.5% behind profit budget, with two-thirds (65%) of respondents meeting or exceeding their profit expectations.
A steady July means garden centre year-to-date performance remains strong, with total revenues +10% ahead of last year and 2023. The HTA warn that in the coming months, similar performance will be required to maintain the current lead over previous years, with the results of HTA’s Q2 2025 Business Barometer highlighting the profit squeeze on account of higher operating costs. HTA modelling suggests that rising business costs, excluding new Inheritance Tax provisions, require a 11% sales increase for a £2m turnover garden centre to maintain operating profit margins. APL members are particularly affected, with average sales behind budget by -7% at the end of Q2 2025 due to reduced consumer spending on high-value projects.
Commenting on the July data, Fran Barnes, Chief Executive of the HTA, said: “July continued to be an encouraging month for our sector, the weather has helped garden centres build on strong spring sales, with particular growth in sales of garden furniture. Non-gardening departments also continued their strong momentum throughout 2025 with indoor living and homewares posting the most substantial gains. Catering sales also grew, with garden centre cafes and restaurants displaying strong growth year-on-year. Our Q2 Business Barometer also shows that retailers with catering were outperforming their expected profit at the end of Q2 by a larger margin than retailers without catering.
“Other insights from the Q2 Business Barometer reveal short-term and medium-term business outlooks for retailers, growers, manufacturers, and suppliers were broadly level with Q1 – after the sector somewhat recovered from the end of 2024; but remain low in historic terms. On a more optimistic note, long-term business outlooks rose considerably for a second consecutive quarter to their highest level since Q1 2024, despite the Autumn Budget changes coming into effect and the continued uncertainty surrounding the global economy. The strong retail sales across spring 2025 will have offset some of these cost pressures and helped contribute to the positive outlook.”
The prolonged dry and hot weather will continue to bring challenges, particularly to businesses in drought areas and where temporary use bans (TUBs) in place. Consumer confidence dropped slightly by 1 point to -19 in July, remaining broadly stable with recent months. A 7-point increase in the savings index indicates that consumers believe their spending power will constrict in the coming months.
