Florists

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Industry Structure, How Firms Opertate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Quarterly Insight, Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 11,900 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 4 workers, and generates about $401,000 annually.

    • The florist industry consists of about 11,900 companies that employ about 49,600 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
                                  Source: Vertical IQ and Inforum

                                  Coronavirus Update

                                  May 8, 2022 - Florists Among Businesses Recruited To Deliver Amazon Packages
                                  • E-commerce giant Amazon is recruiting mom-and-pop shops in rural America to join an experimental delivery program. The company is paying participating small businesses ranging from florists to restaurants to IT shops a per-package fee to deliver Amazon orders within a 10-mile radius to their neighbors’ homes in states like Nebraska, Mississippi, and Alabama. none of businesses are required to have prior delivery experience — just a commitment to deliver Amazon packages seven days a week, around 360 days a year, and a physical location to receive parcels each morning.
                                  • The Wedding Report forecasts a total of 2.47 million weddings in 2022 with an average cost of $24,300. Some 2.24 million weddings with an average cost of $24,900 are forecast for 2023. The number of weddings and the average cost is expected to decrease to pre-pandemic levels in 2024. The average cost of a wedding was $24,675 in 2109, according to The Wedding Report.
                                  • Some wedding planners are asking clients to increase floral budgets by $1,000 to $2,000 to keep up with rising prices. “I think the biggest price increase that we have seen is in flowers, a single rose has gone up just three times the amount and not only are we seeing an increase in the prices but a decrease in the product.”
                                  • Flowers are in short supply thanks to the domino effect of the global pandemic shutdown, large companies buying farms that supplied the open flower market, bad weather, an increase in truck driver demand, and skyrocketing international shipping rates, according to the floristsreview.com industry news site. Pots, vases, and spray paint are also in short supply. Florists say that customers should put orders in early and be open to other options.
                                  • Some businesses that took PPP loans in 2020 but don't apply for forgiveness soon will need to start making payments on the loan plus interest. The PPP loans will automatically convert to a standard loan at 1% interest if a small business does not apply to the SBA for forgiveness within 10 months of the end of the covered period under which they had to spend the money. For some businesses that received a loan when the PPP launched in April 2020, there was an eight-week covered period, which would put the forgiveness application deadline in the middle of July. For most loans operating under the more popular 24-week covered period, that meant a deadline in September 2021.
                                  • The window to apply for Small Business Administration (SBA) COVID-19 Economic Injury Disaster Loan (EIDL) loans, Targeted Grants, and Supplemental Targeted Grants closed on December 31, 2021. The SBA had $11.8 billion in funds remaining across all of its programs as of December 24, 2021, according to The Business Journals. The SBA has been making billions of loans a week, which means the money could run out soon. The SBA will continue processing loan applications received before the deadline, including requests for reconsideration, and Targeted EIDL Advance (grant) applications, including requests for reconsideration. Small business owners who are still struggling with pandemic-related problems will have to look strategically for other grants and COVID-19 relief programs. Options may include private small business grants, state and local government grants and relief programs, and traditional SBA loans.
                                  • Florists have begun placing orders months in advance due to pandemic-related supply chain delays. “During the shutdowns lot of growers were actually going out of business. We couldn’t get the transportation of the flowers here, just because the flights weren’t coming in,” said flower shop co-owner Jennifer Barnard.
                                  • Social distancing has initiated the development of the “microwedding,” according to Catersource. Different from eloping, microweddings include the elements of a traditional ceremony and reception on a much smaller scale. Guest lists that average about 25 to 30 individuals allow the bride and groom to celebrate for a few thousand dollars, a fraction of the cost of a traditional wedding. Scaled-down weddings still involve flowers, but budgets are considerably smaller.
                                  • In the absence of big events that account for a sizable percentage of business, a few New York floral designers have innovated and leveraged the DIY movement. New York floral designer Lewis Miller and other firms ship boxes of 50 to 100 loose stems directly from Dutch suppliers to customers and provide access to online videos that show how to arrange them.
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