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 11,900 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

                                  Recent Developments

                                  Dec 4, 2022 - “Click-by” Lawsuits Are Increasing
                                  • A steadily rising wave of litigation based on infractions of Americans With Disabilities Act (AwDA) rules is impacting many small businesses. Many of these lawsuits are grounded in physical barriers to access, but “click by” lawsuits are being filed in increasing numbers against businesses for digital violations. Click-by lawsuits are initiated when prospective plaintiffs and their lawyers scan websites in search of site designs that violate AwDA rules. The aim in nearly all cases is to reach a cash settlement with the business owner in lieu of going to court. Experts say that the practice has led to numerous cases filed by super-litigious groups of plaintiffs and law firms. AwDA compliance can be complicated, and experts say that small business websites are low-hanging fruit for predatory litigation. Minimum damages for a first offense in California are $4,000 and can multiply for every site revisit.
                                  • Retail sales are expected to increase between 6% and 8% year over year from November 1 through December 31 to between $942.6 billion and $960.4 billion, according to the National Retail Federation (NRF). The figures exclude spending at car dealers, gas stations, and restaurants. Sales increased 13.5% year over year in 2021 and totaled $889.3 billion. Consumers, especially lower-income shoppers, are grappling with higher prices this year on a range of necessities, but they are still spending, said the NRF. Sales volume — or number of items purchased — is also expected to increase from last year. NRF noted that some holiday shopping may have started before November, as retailers have pushed holiday deals earlier each year, in part to boost overall spending.
                                  • About 15% of couples who responded to a 2022 Wedding Report survey said that they are cutting budgets by as much as 28%. Many are having smaller weddings, with 15% of couples cutting guest counts by as much as 27%. About 87% of couples said that they are not having any issues finding what they need or want, and 10% of couples reported higher prices than before the coronavirus pandemic.
                                  • 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.
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