UK: Weedkiller sales dampened by rain in 2007
04 March 2008
United Kingdom, Gardening
The total Garden Chemicals category declined by 1.7% in the twelve months to Jan 08, although within this segment there was a stark difference in the performance of Pest & Disease products and Weedkiller products. The former grew 6.6% to £44m while the latter’s sales fell to £43m, a 9.0% decrease, meaning that the balance between the two sides of this market was fundamentally altered in 2007.
Within this declining market, average prices for Weedkillers increased by 5%, but this was clearly not sufficient to prevent the value erosion witnessed across the market. Demand fell dramatically year on year, with unit sales down 13.4% in the Moving Annual Total.
An explanation for this can be gathered from analysing monthly weather patterns in 2007, an analysis which clearly demonstrates that sales of Weedkiller are somewhat dependant on the weather. Sales started off strongly last season, value sales were up by 44.8% in the period Jan-Apr 07 compared to the same four months in 2006. However, the summer proved to be a wash out and by the end of July the Weedkillers market was down 4.4% compared to 2006, a turnaround caused by heavy rainfall across the country.
This same weather stimulated certain areas of Pest & Disease with Slug Killers, Rodenticides and Plant Insecticides all faring well.
In terms of channel performance over the last year, it was the Mass Merchants who lost out most (value sales were down 15.6%) due to them missing out on the bulk of early season sales, followed by being hit by the poor summer once they their ranges were positioned in store. Garden Centres faired best but sales were still down 3.1%; within the Sheds segment sales fell by 8.2%.
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GfK Retail and Technology, www.gfkrt.com