Industry Overview
Currently there are over 22,000 retail florists/flower shops in the United States. The annual combined revenue generated by these shops is $7 billion. The global number for sales is $24.8 billion. While there are no major chains involved in this industry, there are online florists doing thriving business. FTD and Teleflora are big players in this market.
Florists rely on discretionary consumer spending and require every sales associate to accomplish at least $60,000 per annum in order for a store to be successful. The florist industry is exceedingly labor intensive.
Floral arrangements account for 55% of the sales, with certain holidays relying on certain flowers, such as Valentine’s Day and Roses. Certain flowers have to be imported, such as exotics that cannot be grown here. Most florists are full service, meaning they can provide arrangements for every occasion, from design of bouquets and table pieces for formal affairs, delivery and preparation.
The Society of American Florists has been helpful in providing all forms of assistance and education to the industry. In major cities across the country, there are floral districts, such as New Orleans Floral Center and the extensive florist center of New York City. The delivery of flowers and plants are made to these centers which distribute to the florist shops in the area.
Industry Trends
There are four current trends that move this industry:
- There is growth within the industry
- While the number of chains has not developed, independent florists dominate the industry.
- The number of retail florists has decreased, thanks to the sales of floral arrangements and bouquets at supermarket chains and outlets such as Wal-Mart; the sale of flowers online has become a major factor.
Brand Names
Of course, FTD and Teleflora are the best online names for ordering flowers.