Garden centre sales reach highest volume since 2018
Specialist business property adviser, Christie & Co, has today launched its annual Business Outlook report, ‘Business Outlook 2023 Finding Clarity’, which reflects on the key market activity, trends and challenges of 2022 and forecasts what 2023 might bring across the industries in which Christie & Co operates, including the garden centre sector.
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The report reveals that Christie & Co’s valuation and agency departments valued over 130 garden centre businesses in 2022 and sales volumes reached their highest level since 2018.
According to key market insights included in the report, freehold garden centre values are holding firm, and the market remained buoyant in 2022, driven by the number of multiple operators who continued to purchase good quality independent garden centres. There was also strong demand for smaller garden centres, farm shops and retail plant nurseries from lifestyle buyers.
Christie & Co has more available garden centres for sale than any other agent, as well as a good range of off-market opportunities. Most of the sites that have been sold or agreed sales on received offers from multiple competing buyers. The report notes that an analysis of those parties who have made offers for garden centres has been enlightening, with around half of all the offers made by new entrants to the garden centre market.
Looking to the year ahead, Christie & Co anticipate that the garden centre market will remain strong as buyers will continue to be attracted by the profitability of garden centres, alongside the strong underlying land value and in some cases the longer-term development potential that these large sites offer.
The report also outlines Christie & Co’s general retail market predictions for 2023 which are:
- The threshold for a viable corporate business has increased again, leading to more and better-quality corporate divestments. This presents an acquisition opportunity for independents
- All sellers will need to be realistic about pricing, to reflect the performance of their business and a new cost base
- Price expectations will be a key focus for 2023
Tom Glanvill, Director of Garden Centres and Retail at Christie & Co comments, “Over the last few years, looking forward has proven challenging at times for those in the garden centre market, but the signs suggest 2023 will be a more typical year. As long as operators can keep control of costs and the weather is kind, we believe most businesses will trade well. The underlying value of garden centres, the large size of sites and strong financial performance of the sector over the last five years will likely result in garden centres remaining an extremely attractive option to those looking to invest in operational real estate.”
Click here to read the full report, ‘Business Outlook 2023: Finding Clarity’.
For further information on this press release, contact:
Bronte Hughes, Corporate Communications Manager
P: 020 7227 0794 or E: bronte.hughes@christie.com