Wilting revenue: The industry comes under pressure from supermarket competition

The Florists industry is made up of enterprises that specialise in the retailing of flower products and the provision of floristry services, whether products and services are purchased in store or online. The industry excludes non-specialist online retailers, supermarkets and department stores. Competition from these large external players has been a significant challenge for industry operators over the past five years, pushing traditional florists to the fringes of the market. Supermarkets are increasingly viewed as cheap, convenient and quality places to purchase flowers, at the cost of specialist retailers.Industry revenue is expected to increase at a compound annual rate of just 0.8% over the five years through 2018-19 to £1.1 billion...read more.

Industry Statistics & Market Size
Revenue
£1.1bn
Annual Growth 14-19
0.8%
Forecast Growth 19-24
Profit
Employment
20,751
Businesses
14,024
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Threats from supermarkets and departments stores have placed pressure on performance
  • The quality of supermarket flowers has improved, increasing competition from these retailers
  • A growing proportion of businesses are expected to invest in ethically and sustainably sourced products
  • Industry Report - Industry Products Chapter

    Arranged cut flowersFlorists draw the majority of their revenue from the sale of arranged cut flowers. This segment is expected to generate 55.1% of revenue in 2018-19. Products in this segment include bouquets and arrangements of roses, lilies, orchids, tulips and eucalyptus, among other varieties. Arrangements and bouquets are typically given as gifts, used in weddings and funerals, or purchased for the decoration of homes and offices. Over the five years through 2018-19, this segment is expected to decline as a share of the industry as competition from other retailers has increased in this segment.GiftwareGiftware is expected to account for 23.5% of industry revenue in 2018-19. Thi...purchase to read more.

    Additional Insights for the Florists Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Florists Industry are

  • Having a good reputation
  • Access to highly skilled workforce
  • Proximity to key markets
  • IBISWorld analysts also discuss how external factors such as Real household disposable income and Consumer confidence index in the Florists industry impact industry performance..

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    What's in this report

    What is the Florists Industry?

    This industry specialises in retailing cut flowers, floral arrangements and potted plants. Industry operators purchase these goods from domestic and international flower growers and wholesalers, and then sell them to the general public. The industry excludes non-specialist online retailers, supermarkets and department stores.

    Industry Products
  • Arranged cut flowers
  • Giftware
  • Unarranged cut flowers
  • Plants
  • Industry Activities
  • Cut flower retailing
  • Potted plant retailing
  • Bouquet and gift basket retailing
  • Flower arrangement services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Real household disposable income
  • Consumer confidence index
  • Demand from supermarkets
  • Total online expenditure
  • Marriage rate

  • Current Performance
  • Unstable conditions
  • Restricted growth
  • Branching out
  • Small business support
  • Chart: Revenue Growth

  • Industry Outlook
  • Uncertain conditions
  • Sustainability
  • Competition
  • Table: Florists Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Florists Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Hotels
  • Funeral Activities
  • Consumers

  • Key Selling Industries
  • Confectionery Wholesaling
  • Flower & Plant Growing
  • Flower & Plant Wholesaling

  • Products & Services
  • Arranged cut flowers
  • Giftware
  • Unarranged cut flowers
  • Plants
  • Chart: Florists Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Households
  • Event planners
  • Corporate clients
  • Chart: Major Market Segmentation for the Florists Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchasesRentOther Costs
  • Chart: Cost Structure Benchmarking – Sector vs Florists

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Florists Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Florists Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Florists Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)
  • Wages (2010-2024)
  • Purchases (2010-2024)
  • Profit (2010-2024)
  • Depreciation (2010-2024)
  • Marketing (2010-2024)
  • Rent (2010-2024)
  • Utilities (2010-2024)
  • Other (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Cash And Carry
  • A form of sale in which items are sold for cash but without delivery service.
  • Fair Trade
  • Designation that recognises ethical arrangements between vendor and supplier. This includes fair prices and decent working conditions.
  • Relay Organisation
  • Administrators that coordinate a network of florists to deliver products.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Florists market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Florists:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Florists market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Florists, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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