During the past 12 months the garden and leisure industry has had a tough time – possibly the toughest since the recession hit the UK.

Having spoken to many garden centre owners and retailers of garden products it is evident that most outlets will have been extremely fortunate to have maintained their level of business from the previous year. Indeed, if businesses haven’t diversified into different markets to the norm, it is hard to see these levels of turnover being achieved. A typical comment from one of our 250 customers across the UK would be that they have "held their own", but it is obvious that there has been an adverse effect on sales figures.

Looking at the economic situation not just within the UK but also all over the world, it is quite clear that we are far from growing our way out of this recessionary period. This, of course, has a huge impact in our sector.

Since the start of the recession, Timber Garden Buildings’ (TGB) sales at individual outlets have fallen by an average of 40% from the level of activity in 2007. As an accountant, while it would be all too easy to put the fall in sales entirely down to the recession, in my opinion the single biggest cause in 2012, more than any other year, is the weather.

The ‘summer sun’ in March gave everyone in the sector a sense of hope after a very difficult winter, but the season was completely ruined by the wettest spring and summer on record. For anyone in the industry there is an obvious correlation between sunny, fine weather and good sales. This has been proven once again with the milder, warmer weather in late August, generating a slight upturn in spending.

The recession has meant that although the market in general has been hit, there has been a gap at each end of the spectrum with regards to the cost. The lower end of the market has been helped by people trying to find a bargain, while at the top end a timber-framed office comes in considerably cheaper than a brick-built extension. Again, everyone seems to be looking to get more for their money and more value. The internet has been particularly successful in achieving this perception of a bargain, even if it
is simply a psychological effect – people often think it will be cheaper on the net.

At TGB Sheds our specific market is a mid-price range of products; they have undoubtedly been hit and have by no means been recession proof. So to combat this, new innovative ideas and new models have been brought into the range.

As well as our traditional range we have introduced, at customer request, contemporary-style buildings. These have been become extremely popular with the younger generation of homeowners in particular, while the traditional style is still going strong for most of our outlets.

Offering a larger range for customers who have many other options has to be key when closing a deal in today’s market. Maintaining quality of product always helps during these economically difficult times but is enhanced by a customer service that is actually what it says it is – a service to its customers.

Our brand has also taken more market share by introducing the range of products into more outlets – as far north as Inverness and as far south as Penzance, where we’ve gained valuable business. And this has been a growth period not only organically but also through the acquisition of the Shedlands business in February this year. This has helped grow the business as well as make it more secure for the customers of both brands for the future. The security of a secondary factory also ensures continuity of service.

As a result, the growth each month of 2012 has been a record, with August being a 40% increase on the previous year’s performance. This year’s turnover is forecast to reach £7.5m.