Greetings from our IGCA President

To our IGCA friends!

As the year winds down, it's a great time to take a look back and get ready for 2024!

Our colleagues from Italy did an excellent job hosting a fantastic IGCA Congress 2023 at Lago Maggiore.

Everybody present enjoyed it, gained many new ideas and inspiration and strengthened old and new friendships. Thanks a lot!

The IGCA board underwent a change after a two-year period, with Martina Mensing-Meckelburg and Timme Weilinga joining as new team members and we bid farewell to Martina Schullian, whose term as Past President came to an end.

Paul Cooling is dearly missed; his impactful contributions and visionary insights into the benefits and activities of IGCA will forever be remembered among us.

From the point of view of Czech garden centers, I rate the year 2023 as average. We expected that life would turn back to its "nice" old way after COVID. Unfortunately (or thanks to) there are many other issues that changed rapidly that we didn‘t count on including customer behavior changes, greater price sensitivity when shopping, life preference and lifestyle changes, market saturation in our product categories after COVID and the green deal challenge. Let's take these new realities as challenges and opportunities to move ourselves and our companies forward for 2024!

Thank you all for your continued support to the IGCA. I wish you a beautiful, relaxed and Merry Christmas and lots of health, happiness and success in 2024.

See you in Quebec/Montreal 2024!

Stepan Smerda

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Overview: IGCA Congress 2023 - Italy

by Karen Moad

I feel very privileged to not only have attended Congress this year, but also to complete my two year term as IGCA president – it was such an honor and an event that I will never forget! 250 delegates were treated to a program that was beautifully curated, featuring gorgeous sights, fabulous garden centres, and incredible hospitality with soul.

Our base for the week was located onthe stunning lakeside of Lago Maggiore, in Italy. The theme was 'Food flowers and fashion'. Each morning the sunrise put on the most spectacular show and our days were filled exploring, networking and having fun from early to late, to early again!

Cultural highlights included our opening cocktail function at La Rampolina – the most gorgeous hillside location looking over the lake, visiting the Barromean Islands via boat with a moving Opera performance in the evening, dinner at the very exclusive Villa Erba on Lago Como.

The Garden Centres were fabulous and filled with beautiful displays each with their own focus and personality. From bands, dancers, singers and a fashion show, there was not a shortage of inspiration and excitement to experience.

We were also lucky to visit Orticolario 2023 -
an incredible event that runs for just four days each year to showcase design, art and thematic gardens, together with rare, unusual and collectible plants, and artistic craftsmanship.

There were also educational business sessions, a visit to a horticultural college and tour of La Venaria Reale – formally a royal palace, residence and gardens.

From prosecco to cured meats, cheeses, coffee, classic Italian fare and of course pizza, we were finely wined and dined each day!

Our week ended with a black tie gala dinner at the hotel and at the end of the evening, we were surprised with the most uplifting and inspiring video that captured the events across the course of the week and brought a tear to many eyes!

Thank you again to Stefano, Chiara, Silvano, Giacumo, Sandro, Martina and Davide and all of the bus leaders, it was truly a wonderful congress!

Karen Moad
IGCA Past President

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Update from Australia

by Leigh Siebler

Hello everyone,

Australia’s politics have been all over the place this year with a relatively new government keen on making changes.

However, neither of our two main political parties won a large number of seats at the last election so neither are really popular and that affects consumer confidence.

The Australian economy is generally strong with low unemployment. High interest rates are hurting everyone and particularly those with a large mortgage, usually younger people of course. As usual though, changeable weather affects our industry more than anything else and it has been very variable.

GCA is going through a revamp over the next 6 months or so as we review everything we do. There are too many retail groups in Australia, GCA has the most members, but we always need to look at what benefits we offer to current and prospective members. We do have one excellent new program that should be up and running in 2024.

Our ‘Talk with the Suppliers’ sessions on Zoom this year have been very well received. They are only half an hour and at times we don’t have a large audience. However, they are recorded and we are finding that members sit down with their key staff and are viewing them later.

I feel that we are still in a fortunate position in Australia with a relatively stable economy and positive people running the industry. Plants and Gardens are still the best tonic for Health & Wellbeing.

Australian Christmas Displays

Grow Master Traralgan GCA President's Acorn Mt Evelyn Nursery
Nursery & The Oaks Cafe

My apologies that I am unable to be at the Administrators meeting in South Africa.

Have a Merry Christmas and Best Wishes for 2024.
Leigh Siebler, Manager, Garden Centres of Australia

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Congress 2024 - Canada

The next International Garden Centre Association (IGCA) Congress will be held in Quebec, Canada. Another amazing opportunity to mingle, share and experience over 10 unique garden centres throughout 5 days of touring and connecting with fellow garden centre owners from 20 countries. To learn more visit www.igca24.ca! See you all in Quebec!

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Czech 2023 Christmas time

by Michal Ferencick

This was another challenging year, but in the end it was not bad. The average of our turnovers is nearly the same as last year. And the garden centres near Prague have a slight plus in the total turnover.

Last week we had a lot of snow and it was exactly on the first advent weekend which we were not so happy about. But after that, sales got better.

As an association we started our new brand project. We set up the new brand called FloreniUm. The aim of this project is to support the garden centres with marketing by preparing special and quality products for our customers.

If you would like to know more about this brand you can see our web, FB or Instagram pages:

https://www.facebook.com/people/Florenium/100095507197348/
https://www.florenium.cz
https://www.instagram.com/florenium.cz/

We are all very exited about this project for the upcoming years.

We wish you all the best for the coming Christmas.

Michal Ferenčík – Garden centre Ferenčík, Czech garden centre association - FloreniUm

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Update from Denmark

by Per Boisen Andersen

An overview of the Garden Center Industry and the Danish economy

Like in rest of the world the weather has been a challenge this year. A freezing cold March, a very dry May and June.

Cold and rainy July, and the wettest and stormy autumn ever, which resulted in flooding in low lying and coastal towns. This resulted in a short season. The index for the industry were ending October 97,6% compared with last year. The sales in November were very bad, and Christmas sales are slow, so we expect the index for 2023 will be around 96% or less.

The Danish Garden centers experience structural changes like Norway and Sweden did years ago. Capital chains like Plantorama and Billig Blomster acquire independent garden centers, and small garden centers in the countryside can’t be generational changed, so the total amount of garden centers is reduced every year.

A general view of the state over the Danish economy shows a quite strong economy. The core inflation is 3,3%. The consumer price index 0,1%. Economic growth (GPD) - 0,1, and government surplus (GDP) 3,3%. Unemployed 2,4%. Interest rates 3.80%

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News from France

by Thomas le Rudelier

In recent months, inflation in France has remained around 4.5%. The autumn season has been characterized by a decline in income and a decrease in store attendance.

The availability of water resources has been a significant issue in France in certain regions.

In September, 66% of groundwater levels are below monthly averages. Efforts and restrictive measures are being maintained for 2024. In this regard, the Federation is currently conducting a study on water usage in gardening to promote best practices and gather quantitative data for discussions with authorities.

The French industry has decided to cease the use of horticultural pots containing carbon black to facilitate the recycling of these waste materials from January 1, 2024.

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Feedback from Germany

by Thomas Buchenau

In our country, the economy is under pressure. Personnel costs are rising, energy costs are high, and material procurement remains tense.
It is feared that numerous insolvencies will follow in the coming year. This situation also has implications for our industry in parts.

Garden centers are indeed less burdened than other companies, yet we are facing a worse financial situation and a decline in the number of units sold compared to the previous year. Our members can still be satisfied, as other industries such as construction have an even harder time. The outlook for the coming year is not better.

Of course, we in Germany are pleased to have been awarded the IGCA to host the International Garden Center Congress in 2026. We are very happy to welcome all of you to our beautiful country! We have already started planning, and our anticipation for the grand event is steadily growing.

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Update from Ireland

by Fergal Doyle

Garden Centres in Ireland continue to trade flat to marginal growth (0% to +5%) compared to the same period last year, spanning November and early December. Christmas stock continues to perform but not as strong as last year, while Christmas related products started to sell earlier this year, it has slowed down in recent weeks as consumers tighten their budget this year with the cost of living crisis.

Real Christmas trees began to see a pickup in demand in the first weekend of December, but sales are still considerably down on previous years. Artificial Christmas trees continue to grow in demand and are selling well, but there is a noticeable price war happening with 20% off discount being widely applied.
Winter plants performed reasonably well in November as the weather was quite mild. Gifting and homeware related products are performing well with some promotional activities planned closer to Christmas.

On a positive note instore cafes and restaurants continue to perform well as consumers treat themselves to experiential experiences rather than goods & products. With a couple of big weeks of trade ahead, Garden Centres in Ireland are hoping for trade to continue to pick up and hold strong.

OUTLOOK FOR 2024

Retailers in Ireland face significant challenges including high energy, wages, borrowing costs and warehoused debt.
Online competition will remain strong as a stretched consumer seeks value.
Positively, retailers will embrace technology - AI, augmented / virtual reality - to enhance efficiency and the customer experience.
Consumers will continue to seek out sustainable brands. Some of our members are investing significantly in green tech in the redevelopment – rain water harvesting system, solar and modern heating and cooling systems.
Growing demand for community-driven shopping, peer-to-peer commerce, and social shopping experiences will continue to drive the evolution of retail.

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Feedback from Japan

by Akihiro Ozaki

As a result of record-breaking heat this summer, garden centers suffered from a devastating drop in sales, and gardening products across the industry were struggling to sell. Since October, we have finally found relief from the intense heat, and sales are on the road to recovery.

However, there is no change in the fact that prices, especially energy prices, continue to rise, and the business environment is becoming increasingly difficult as wages rise.

Sales of pansies and violas play a very important role in Japan's winter sales season, when Christmas demand only accounts for a small portion of sales.

In recent years, in Japan, in addition to conventional varieties, many varieties that have been improved by numerous breeders have appeared on the market, and unusual varieties have become so popular that it has been called a winter boom. The price is five times that of regular pansies, and there are restrictions on the number of purchases, but some varieties are still so popular that they sell out the moment they arrive. It has now become an important winter item in Japan.

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Update from Poland

Economic Situation
In Poland, the economic situation is currently improving. Inflation is gradually slowing down. The labor market remains stable, unemployment is relatively low. After the elections in October, consumers are in a better mood. We expect Poland's position to be strengthened on the international arena, respect for the law and better functioning of the justice system and education, as well as greater concern for the environment.
Last season ended well in the gardening industry. However, there is concern about next year's season, especially anxiety about what will happen in the world and what the impact of the global economy will be on the Polish market.

Trade conditions in the horticulture industry
We continue to notice an increase in the popularity of specialized and BIO products, as well as those in small, handy packages. For several years now, the plant nursery has been steadily growing interest and demand for deciduous trees, shrubs and perennials.

Nevertheless, there is still a shortage of good plant material on the Polish market.

Garden centers are struggling primarily with the problems of rising labor costs and the shortage of employees, their recruitment, motivation and retention.

The cooperation of Polish nurseries producing plants with Polish gardening centers has become closer. This is influenced by the war in Ukraine and the inability to export plants to the eastern market.

In November 2023, two large exchanges of Polish plant nurseries were held:
Green Show Room near Łódź https://www.zielonashowroom.pl/ and Silesia Plants in Katowice https://targi.silesiaplants.pl/, where owners of garden centers could place orders for the new season.

Plant nurserymen were satisfied with the number and size of orders placed. In November, the largest gardening fair in Poland, Gardenia 2023, took place in Poznań https://targigardenia.pl/en, where you could meet the entire gardening industry, learn about trends for the new season and place orders for goods.

News from our Association
In the Polish Association of Garden Centers (PSCO), autumn was an intense time, full of important events.

In September, like every year, we organized a Garden Fair for our members, owners of garden centers, and invited 45 companies from the gardening industry to present their products for the 2024 season. The fair, which has been organized for years, enjoys great interest and enables garden centers to place their first orders for the next season.

In November, the annual General Meeting of PSCO was held, during which we set the goals and activities of the Association for the next year.

Autumn is the time to place orders for goods to garden centers for the next season and the time for training. Training takes place stationary, e.g. on the occasion of the General Meeting of Members, and every week online via the Zoom platform. The topics are diverse, from advertising, social media, through team management, customer service to product training. We train our members, garden center owners, but also center employees. This is time well spent when there is less traffic in gardening stores.

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News from Spain

by Santiago Gonzales

The current economic situation is regular, there´s a change of Government and that leads to uncertainty. The gardens have had a stable year but assuming a lot of cost and margin on the products due to the rise in costs of everything.

One of the great novelties of our association this year is the new market study commissioned from NIELSEN to understand the consumption habits of plants and flowers in our country. After almost 1,000 personalized surveys, we are surprised by some data on fans who buy plants and flowers, how often they do so, how much they spend and where they usually buy. Garden centers emerge as the preferred establishment to buy plants, followed by florists and large stores. The study has been fully financed by the AECJ and has been highly valued by both the gardens and the collaborating companies that make up the association.

And, the second novelty is a manual published by the AECJ on the Integral Management of a garden center. This manual, which was printed for members to deliver at the Iberflora fair, has also been sent to members in digital format. The manual gives general advice based on the experience we have acquired over the years, on garden staff issues, planning, cross-selling, a garden welcome manual, how to attract talent, among other aspects.

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Feedback from South Africa

by Gerdie Olivier

South Africa continues to wrestle with a challenging economic landscape, as consumers bear the brunt of persistent hikes in essential services and food prices. Inflation, escalating from 4.7% to 5.9% since August this year, has added to the financial strain on consumers.

However, despite the economic challenges, interest rates have not seen an increase since May 2023, providing a slight reprieve.

The issue of electricity load shedding persists due to Eskom, our power utility, struggling to meet demand. Unfortunately, this problem is anticipated to continue into the foreseeable future.

As a water-scarce country, concerns about water supply linger. In Gauteng, the water supply utility regularly faces difficulties meeting demands due to maintenance issues and intermittent power supply for water pumping. The constant heatwaves exacerbate the situation with high temperatures posing additional challenges.

This season, garden center and supplier sales have been average, reflecting the impact of reduced consumer spending power.

Our ongoing consumer marketing campaign, "Life is a Garden," proves invaluable in communicating with consumers on gardening-related topics. Emphasizing social media channels such as Facebook, Pinterest, Instagram, and YouTube, the campaign utilizes our recently revamped website as a central information portal.

Regular articles in print media and available posters for retailers in garden centers further enhance the campaign's reach.

Initiated in September, our three-month Water Warrior consumer marketing campaign aims to educate consumers on responsible water use while maintaining their gardening practices.

Articles were published in a popular gardening magazine ccompanied by additional highlights shared across various social media platforms.

During the last quarter of the year, we conducted consumer market research, focusing on gardening habits and requirements, decision-making procedures, buying patterns and retail, and gardening trends and natural surroundings. This valuable information aims to enhance nurseries and retail spaces for consumers.

In our Executive Council meeting at the end of November, we elected the president-elect, Louis Hecker, who will succeed the current president, Kathy Varney, in June 2024.

Our IGCA congress organizing team is diligently preparing for IGCA 2025, promising an exceptional event. In February 2024, we will host administrators and board members in Cape Town for the annual administrator meeting, offering a sneak preview of the upcoming congress. Stay tuned to the IGCA social media pages for event photos.

As the year comes to a close, we extend warm wishes to our Association friends and fellow IGCA members for a joyful holiday season. We eagerly anticipate a fantastic 2024 for the green industry.

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Update from The Netherlands

by Frank van der Heide

The economic situation in The Netherlands is not very strong. A lot of retailers (in general) are struggling with their turnover. But garden centers are doing quite well. On the average they achieved a plus of 4-5% in turnover. In quantity of products somewhere around 0.

Christmas is going very well at the big and medium-big garden centers who really focus on this theme and make a big show of it. Smaller garden centers are having more difficulties with their turnover in this season. What we also see is a kind of pre-COVID behavior of consumers. They are willing to travel large distances for great shows at garden centers - 75 to 100km is really not an issue.

A big issue for garden centers are the enormous increase of the minimum wages and so also the other wages. The last 1,5 year wages were increased with ca 20% and next January the minimum wages will increase again with 9,35%.

As association we are working hard on our climate squares and greening gardens. We are in consultation with the government for a subsidy project for realizing more of these squares. They are very enthusiastic about the theme and so we hope this will work out. In November and December we opened 2 climate squares in France and also 2 in Germany.
Next to this project we started 3 Expert Groups, each with ca 18 (garden) retailers, suppliers and experts from outside our business to discuss and think about garden retail in 2030. How will our sector look like in 2030 on the themes: Staff, Sustainability and Retail & Innovation and what do we need to do today, tomorrow and the coming years to get there.

Last but not least we like to share that we are piloting robots in garden centers. What role can they have in future in our business.

The robot in this particular garden centers is selling house plants and fertilizers

From our association and on behalf of our members, we wish every body a very merry Christmas and a wonderful start of the year 2024!

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News from UK

by Peter Burks

The economy has improved slightly during the year as energy costs have dropped, inflation has also fallen to 4.6% and the number of people in employment has risen significantly. That said the squeeze on household incomes remain and is a big talking point. We are hoping that Christmas will be good as the trade needs the cash flow.

Overall our GCA Barometer of Trade, that gathers information from 77 members, shows a year to date increase in sales of 2.2%. The highlights are Catering +17%, Food halls and Farm shops +12% and Plants, seeds and bulbs +9%. The biggest issue all year has been Furniture and BBQ sales, down by 26% which is a big category for our garden centres. This has been tough for those who stocked up post covid and carried too much stock into 2023. Added to this the falling cost of shipping containers from China has driven an urgent need to get rid of this stock as new deliveries are going to be 30-40% cheaper on the shop floor next year. Landscaping products has been our other big faller being down by 10%.
We are now in full swing selling tickets for our annual conference from 28^th-31^st January 2024. The main theme is “The Future of Garden Centre Retailing” with some great speakers lined up. Leanne will be coming to promote the IGCA Congress in Canada next year. We have our next webinar on “Recruiting and Retaining Staff” in early December.

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