Garden Centers & Farm Supply Stores

Garden Centers & Farm Supply Stores

Brief Excerpt from Industry Overview Chapter:

Companies in this industry sell garden products such as trees, plants, seeds, bulbs, and sod; some also offer farm supplies, including animal feed. Major companies include Adams Fairacre Farms, Armstrong Garden Centers, Calloway's Nursery, Meadows Farms, and Tractor Supply Company (all based in the US), as well as Blue Diamond, British Garden Centres, and Dobbies (all based in the UK).

COMPETITIVE LANDSCAPE

Consumer income, home sales, and leisure activity trends drive demand in garden centers; the general health of the farming sector, which is tied to crop and livestock prices, weather, and consumer consumption patterns, drives demand in farm supply stores. The profitability of individual companies depends on effective merchandising and marketing, competitive pricing, and the ability to secure convenient locations. Large companies have advantages in purchasing, distribution, finance, and marketing and can better serve large customers. Small companies can compete effectively by offering specialty products, providing superior customer service, or serving a local market. The US industry is fragmented: the 50 largest companies generate about 40% of revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major products sold include farm supplies (about 55% of revenue), home lawn and garden goods (about 25%), and fertilizer, lime, chemicals, and other soil treatments (about 20%). Farm supplies include grain and animal feed. Outdoor nursery stock includes trees, shrubs, bedding plants, bulbs, sod, and seeds. Companies may also sell hardware, automotive fuel, pet food and supplies, and lawn and garden equipment and parts. Services include...