The landscape of French garden centers has undergone significant reshaping in recent years, with Gamm Vert at the center of strategic movements. Between the reintegration of franchises, TERACT’s refocusing on its historical brands, and the redistribution of stores to regional cooperatives, the signals are numerous. What parameters allow us to measure the extent of this restructuring?
Gamm Vert and TERACT: Key Figures of the Garden Center Repositioning
The TERACT group, the parent company of Gamm Vert, reported a revenue of €397.3 million in the first half of 2023-2024, an increase of 11.6% in published data. This growth masks very different dynamics depending on the segments.
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| Indicator | S1 2022-2023 | S1 2023-2024 |
|---|---|---|
| Share of food in total revenue | 6% | 18.5% |
| Change in garden center sales (published data) | – | -3.3% |
| Stores converted to franchise during the period | – | 22 stores |
| Mission-driven company status | No | Yes (December 2023) |
The 3.3% decline in garden center sales is partly explained by the conversion of 22 stores to franchise, linked to the management strategy of the network. This figure reflects a deliberate movement to reorganize the network, not just a simple commercial downturn.
To better understand the acquisition of Gamm Vert and its franchise, it is essential to place this data in the broader context of the refocusing carried out by TERACT since the abandonment of the merger with Casino.
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Acquisition of Gamm Vert Franchises: The Logic of Reintegration
TERACT has made the reinternalization of franchised Gamm Vert stores a central axis of its refocusing plan. The group now more clearly distinguishes between integrated stores (under direct control) and franchised stores in its financial communications.
This strategy responds to a specific objective: to secure a base of points of sale whose profitability is controlled. After the failure of the Casino project, TERACT redirected its investments towards its garden and pet store brands, disengaging from certain physical food projects.
Why Reinstate Rather Than Franchise
The transition from franchise to integrated allows the group to control pricing policy, supply, and brand image at each point of sale. In a garden center market under pressure (unfavorable weather, constrained purchasing power), this direct control offers better responsiveness.
- An integrated store generates margins captured directly by the group, without any retrocession linked to the franchise contract
- The centralized management of stocks and exclusive brands (recently launched by TERACT) requires a homogeneous network
- The development of Gamm Vert websites assumes consistency between online and in-store offerings, which is easier to guarantee in an integrated model
On the other hand, franchising remains a relevant model for low-density areas, where the group’s direct investment would be disproportionate compared to the expected revenue.
Regional Redistribution: The Case of Cavac and Cooperatives
Alongside the reintegration, some Gamm Vert stores are changing hands in favor of regional agricultural cooperatives. Cavac Distribution has taken over 8 Gamm Vert stores, illustrating another aspect of the network’s restructuring.
This type of acquisition by local cooperative actors modifies the network’s map without reducing the number of points of sale under the Gamm Vert brand. The franchisee changes, but the brand remains. For the consumer, the continuity is almost transparent.
Gamm Vert Franchise: Conditions and Profile of Buyers
The Gamm Vert network is one of the most established garden center brands in France, with a dense territorial network. The franchise model is based on several parameters that potential buyers evaluate:
- A required personal contribution, the amount of which varies according to the size of the store and the geographical area
- Support from the group’s purchasing center, which negotiates supplier prices for the entire network
- Access to exclusive brands developed by TERACT, a differentiation lever against Jardiland or DIY-home improvement brands
- The possibility of integrating a pet segment, a growing area in French garden centers
Cooperatives like Cavac have a structural advantage: their local roots and knowledge of the agricultural fabric facilitate the integration of the garden center offer into a broader ecosystem (seed sales, agronomic advice, supplies for rural housing).
Garden Center Market in France: Pressures and Perspectives
The garden center sector is going through a phase of consolidation. The weather and purchasing power weigh on sales, while brands seek to diversify their revenues towards food, organic products, and snacking.
TERACT has also adopted the status of a mission-driven company in December 2023, formally embedding a responsible commitment in its statutes. This positioning aims to attract a clientele sensitive to environmental issues, a segment that is expanding in the garden market.
The development of exclusive brands and the launch of websites for the group’s brands are the other two identified growth levers. Online sales represent a channel that TERACT is gradually structuring, in addition to the physical network.
The distinction between integrated and franchised stores will continue to shape the group’s announcements in the coming fiscal years. Data from the second half of 2024-2025 will allow us to measure whether the reintegration strategy produces the expected effects on profitability per point of sale, a parameter that TERACT now emphasizes in its communications to investors.