Sir Terry Leahy Believes Garden Spend Could Double

Addressing the HTA's Cultivating Retail Conference, Sir Terry Leahy former CEO of Tesco and current investor in Dobbies, explained how retailing has changed.  Garden centres are well placed, gardening spend could double because of today’s issues.

Customers have changed

Sir Terry said when he joined retail it was about making a home and having nice products. It's not the same now because buying a home is out of reach to many people and most already have what they need.

Their dream is to look good and live forever, so it’s lifestyle that it is behind much of the growth in consumer spending.

• People value experiences over ownership of products.
• We are social animals but because we spend so much time in front of a computer, we place a premium on social occasions.
• People plan less therefore will pay for convenience. More ‘Do it for me’ than DIY.
• Customers are looking less for choice and more for a tailored solution.
• They want to consume responsibly. Sustainability is now becoming a mass movement.
• The most important thing in business is to win and keep loyal customers. Too much is spent on trying to find new customers.

Garden retailing

Gardening currently makes up about 1% of consumer spend. This could double because of the relevance we have for today's issues.

The industry is an important part of the natural landscape, cleaning air and cooling cities.

The industry should bang the drum louder and make it clear that we play a vital role in fighting climate change and we should challenge the Government to support our plans.

About Dobbies

When he was CEO of Tesco he bought Dobbies thinking it could become a national chain with the backing of Tesco capital.  The plan wasn’t implemented because Tesco, [under new management] had other priorities.

Sir Terry is happy to be an investor in Midlothian Capital and thus Dobbies, because he believes garden centres are better placed than other retail formats.  They are an experience.  People visit with a leisure mindset; it is not a chore.

Source : Reproduced with permission from GardenForum

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