Landscape Juice

Why Tesco results are a warning to us all

There's still no doubt that Tesco is one hell of a success story but in terms of its trading for the last quarter of 2011, Tesco still fell way short of analysts' expectations.

Tesco, Britain's largest retailer this morning reported like-for-like UK sales dropped by 2.3% over the festive period.

The results for the six weeks to 07 January 2012 came in significantly below expectations and disappointed markets with 14% wiped from Tesco's market cap.

It's the biggest one day fall in Tesco stock since 1988: Tesco has lost nearly one quarter of its market cap this year.

Sainsbury and William Morrison both dropped sharply on the news.

Other major retailers have also reported sharp trading declines. Argos down 8.8% in the last quarter; Homebase down 2.6%; Mothercare down 3%; Thorntons down 4.2%; Halfords 4.8%.

Marshalls says its domestic landscaping market remains subdued

Marshalls have released a trading update with revenues for the year ended 2011 up by 8%.

Interestingly, domestic sales rose 7%.

Marshalls don't however separate international domestic sales from the UK market but reading between the lines, reading this:

"In the domestic end market volumes remain subdued against a background of low consumer confidence."

Suggests that the UK domestic market's outlook hasn't improved significantly.

Do you do hard landscaping? What's your view on the hard landscaping market and what's your view on the prospects for 2012?

UK headed for a double-dip recession

The United Kingdom is now almost certain to re-enter recession according to the Organisation for Economic Co-operation and Development (OECD).

The OECD is saying that the UK's gross domestic product will shrink in the last quarter of 2011 and the first quarter of 2012 - If their prediction is correct it will mean the UK will be back in recession.

OECDs estimates that growth will slow to just 0.5% in 2012; way down from the estimate it gave back in May. A triple whammy, of weak demand for exports, the government's austerity measures and the squeeze in consumer spending has led to a deep downward revision.

Monro South in administration

Horticultural supplier, Monro South, has gone into administration.

The horticultural supplier - which started trading in 1899 - is now being controlled by joint administrators Simon Paterson and David McClean of Moore Stephens.

In a statement on the Monro South website, listed creditors, who have not received a creditors report by Friday, 18 February 2011, are asked to contact Sarah Samuels by email - sarah.samuels@moorestephens.com

Monro South is being sold, either whole or in parts and interested parties are asked to contact agent Edward Symmons to express their interest.

Munro Horticulture Limited - download a Retention of Title Questionnaire.

The costs of fuel and ways to reduce it

Crude oil prices are again threatening the $100 a barrel level. Although this is high it is still a lot less than the $150 peak of 2008.

Why then are the figures at the pump going up and up beyond 2008 levels? One reason is that the British pound is now weaker against the dollar. The dollar is the currency for oil. Another reason is that the government is collecting 58.95p in tax per litre of petrol or about 63% of the total, writes Carol Miers.

The effect is an increase of roughly 40% in fuel costs in three years for small businesses.

This is shown from comparing the 2007 hourly rate calculation made in the Landscape Juice report What should I charge?

Are smaller landscaping businesses set for rich pickings?

"Landscape industry dismayed over coalition cuts to school building programme" - a headline on Hort Week today.

Goodness knows where the hell the landscape industry has been for the last 2-3 years? Surely, any sensible business owner (especially those reading Landscape Juice) would be more than aware that this recession is like no other; it has a long way to play out before a real recovery gets under way and there will be a lot more casualties before a recovery happens.

Whilst some pundits were telling you to prepare for the upturn and that the recession is over, I've been trying, through Landscape Juice, to help landscape businesses condition themselves for the longer haul.

Stock market falls fuel double-dip recessionary fears

Stock markets around the world have seen the biggest single day drops in their trading history as fears return that the world is heading for a double-dip recession.

At one point yesterday, the New York exchange Dow Jones index was off nearly one thousand points (just short of 10%) before recovering to close -347 or 3%.

Kildare Growers trade show falls victim to the recession

An established Irish trade show, which has operated successfully for the last twenty four years, will give 2010 a miss due the the harsh recession.

In a press statement on Kildare Growers website, is said: "The Group, who organised the 2009 show in association with Bord Bia (Irish Food Board) have decided to use 2010 to carry out a comprehensive and independent review of the show with a view to setting out a new strategy for its development for 2011 and beyond".

It is hope that the show will return in 2011.

Debate: where will printed publications fit into garden media?

What is the future of printed garden media? It's a question I have constantly asked on this blog over four years now and, to date, the subject has never really got the airtime it deserves.

I have to declare an interest; I have a website: it would appear - to a casual visitor or a magazine publisher - that I want to see the back of print at the earliest opportunity.

This is not the case: don't shoot the messenger: the truth will always out and now, I feel, is the right time to invite all interested parties into a debate.

Preparing your business for 2010 and beyond

I might have gained myself a bit of a reputation as being a harbinger of doom when it comes to talking about the recession but I do think I have called it fairly accurate.

Way back in 2007, while many pundits were oblivious to the gathering gloom, I started to talk about recession and how it was going to change the landscape for land-based businesses.

Indeed the recession came and yes has it changed a lot and boy! has it done some damage.