INDUSTRY REPORT
Q3 Patio, Lawn & Garden report: Navigating demand shifts
The Patio, Lawn & Garden category experienced significant headwinds in 2025, with consumer pullback and pricing pressure reshaping how brands compete. Here's what the data reveals about navigating this challenging environment.
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Key takeaways
- Traffic collapsed but conversion improved: Glance views dropped 19.7% YoY, yet conversion rates rose 4.7%, showing engaged shoppers still bought when they visited.
- Inventory reached 18-month low: On-hand inventory fell 22.4% YoY to the lowest level since 2024, reflecting cautious planning and reduced demand expe
- Prices fell sharply despite fewer discounts: ASPs declined 27% YoY while discount rates dropped 6.1%, suggesting brands shifted to lower-priced items to stimulate demand.
- Margins recovered but sales declined: Gross margins improved 11.5% YoY as OPS fell 2.7%, showing profitability came at the cost of volume.
- Retail media efficiency cratered: Ad spend rose 9.7% YoY while ROAS dropped 28% and CPC jumped 22%, indicating brands paid more for diminishing returns.
- High-value OOS drove outsized revenue loss: Revenue lost to stockouts increased 34% YoY despite lower overall OOS rates, showing unavailability hit premium SKUs hardest.
