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Florists

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                Executive Summary

                Brief Excerpt from Industry Overview Chapter:

                The US florists industry includes about 16,000 retail flower shops with combined annual revenue of
                about $5 billion. No major companies dominate the industry, which is highly fragmented: the 50
                largest companies account for less than 10 percent of revenue. Companies such as 1-800-
                FLOWERS.COM, FTD, and Teleflora serve as sources of orders for independent florists as well as
                sources of competition.

                COMPETITIVE LANDSCAPE

                Demand for flowers depends on discretionary consumer spending. The profitability of individual
                shops depends on effective marketing. Companies focus on a local or regional market and compete
                based on convenient location, price, and customer service. Florists also compete with supermarkets
                and mass merchandisers selling flowers, which can often sell at lower prices because of volume
                purchases from growers or wholesalers. The industry is labor-intensive: annual sales per employee
                are about $65,000.

                PRODUCTS, OPERATIONS & TECHNOLOGY

                Major products are cut flower arrangements (about 55 percent of industry revenue), potted plants
                (12 percent), and loose cut flowers (12 percent). Stores may also sell vases, artificial flowers, and
                other gift items. The top-selling flowers are roses, carnations, and lilies.

                Florists buy product from one, or several, of about 1,000 wholesalers and importers, who in turn
                buy from several thousand growers. Imports, mainly from Colombia and Ecuador, account for about
                70 percent of cut flowers sold in the US. Wholesalers typically deliver cut flowers several times per
                week. Store operations consist of caring for flowers, ...



Contents:       Industry Overview
                Quarterly Industry Update
                Business Challenges
                Trends AND Opportunities
                Call Preparation Questions
                Financial Information
                Industry Forecast
                Website and Media Links
                Glossary of Acronyms



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