Florists
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 11,200 florists in the US specialize in selling cut flowers, flower arrangements, and potted plants. Major product categories include cut flowers (arranged and unarranged), indoor potted plants (blooming and non-blooming), and artificial/silk flowers, plants, and trees. Companies may also sell gifts, glassware (vases), souvenirs and novelty items, outdoor nursery stock, and seasonal decorations.
Variable Supply Affects Margins
The supply of fresh flowers can vary, and affect margins and a company’s ability to fulfill orders.
Seasonality Requires Working Capital
Demand for florists’ products is highly seasonal, and peaks during certain holidays.
Industry size & Structure
The average florist operates out of a single location, employs fewer than 10 workers, and generates about $428,000 annually.
- The florist industry consists of about 11,200 companies that employ about 63,600 workers and generate $4.8 billion annually.
- The industry is highly fragmented; the top 50 firms account for less than 10% of industry sales.
- Most companies are small, independent operators. Some companies own multiple stores, but generally operate within a limited geographical market.
- Large floral networks, such as FTD, have national and international operations.
Industry Forecast
Florists Industry Growth
Recent Developments
May 3, 2023 - Mother's Day Spending to Reach Record Level
- Consumers plan to spend nearly $36 billion on Mother's Day in 2023, $4 billion more than the previous record high in 2022, according to National Retail Federation data reported in Gifts & Decorative Accessories. The most popular gifts to purchase are flowers and greeting cards, tied for the top spot at 74%. About 60% of consumers are expected to celebrate Mother's Day with a special outing, such as a restaurant meal. The per-person spending expected for the holiday will reach $274.02 in 2023 from $245.76 in 2022, reaching a record in the survey's history. The segment expected to spend the most is consumers aged 35 to 44, spending an average of $384.26. Consumers are shopping for Mother's Day gifts online (34%), and at department stores (34%), specialty stores (30%), local and small businesses (24%), and discount stores (23%).
- Florists may need to make adjustments to protect their profit margins with the continuing challenge of inflation, according to Floral Industry News. Florists feel pressured by higher supply costs that need to be passed on to customers, as well as employees who ask for increased wages to assist with the higher costs of living. Financial expert Paul Goodman suggested using pricing formulas so that price points change automatically as costs rise and ensuring that staff members are comfortable talking with customers about the new price points. Total payroll costs should be 30% of total sales; changes will need to be made if that is not the case. Goodman suggested staffing according to the number of orders typically received, asking employees if anyone would like to work fewer hours, and reducing headcount if necessary. According to Goodman, “By now, every small business owner has experienced inflation woes, including florists. To manage your profit margin, focus on two things: pricing appropriately and controlling payroll.”
- The average cost of a wedding in the US increased year over year in 2022 by 7.3% to $29,195, with the flowers and decorations category showing growth, according to The Wedding Report. The increase follows a 25% gain in cost in 2021 to $27,063 after a pandemic dip in 2020 to $20,290. Most of 2022’s growth comes from higher service demand and inflationary pressure. Average costs for flowers and decorations climbed in nearly all categories in 2022 from 2021. Costs rose for wedding venue flowers and arrangements to $638 (20.7%), boutonnieres and corsages to $191 (11.5%), bouquets to $427 (9.9%), and wedding venue table centerpieces to $391 (8.2%). The report was based on more than 26,000 data samples from people getting married.
- The National Retail Federation (NRF) is projecting US retail sales growth of 4% to 6% in 2023, climbing to $5.13 trillion to $5.23 trillion. In 2022, retail sales grew by 7% to $4.9 trillion. The non-store and online sales segment is expected to grow by 10% to 12% in 2023 to a range of $1.41 trillion to $1.43 trillion. Much of the growth is driven by multichannel sales, which uses the physical store as part of the fulfillment process. Brick-and-mortar stores remain the primary point of purchase for consumers, accounting for some 70% of total retail sales. According to NRF President and CEO Matthew Shay, “In just the last three years, the retail industry has experienced growth that would normally take almost a decade by pre-pandemic standards. While we expect growth to moderate in the year ahead, it will remain positive as retail sales stabilize to more historical levels.”
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