INDUSTRY REPORT
Patio, Lawn & Garden market resilience in Q2 2025
The Patio, Lawn & Garden category defied typical seasonal patterns in Q2 2025, revealing unexpected shifts in consumer behavior and market dynamics. Despite economic and tariff challenges, the data tells a story of operational adaptations and strategic inventory management.
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Key takeaways
- Inventory growth outpaced sales: On-hand inventory increased 6.3% year-over-year in Q2, while sales declined by 5.3%, indicating potential overstock situations requiring careful management.
- Traffic declined dramatically: Category glance views fell 17.7% year-over-year in Q2, showing a significant reduction in consumer interest compared to the previous year.
- Operational efficiency improved: Q2 filled units increased 72% year-over-year as fill rate reached an 18-month high, demonstrating improved supply chain execution.
- Prices declined despite reduced discounting: Average selling price declined 6% year-over-year in June while discounting hit 18-month lows, indicating consumer preference for lower-priced items.
- Advertising efficiency deteriorated: Ad spend declined slightly (-0.8%) year-over-year in Q2, but ROAS dropped 18.6% with flat CPCs, showing declining effectiveness of advertising investments.
- Out-of-stock issues improved significantly: Revenue loss due to out-of-stock items declined 42% year-over-year in Q2 as RepOOS% hit a 14-month low, representing a major operational improvement.
