Industry Analysis & Industry Trends
The Flower and Plant Wholesaling industry is forecast to struggle over the five years through 2015-16. A number of market factors have contributed to this expected decline, including the increasing dominance of supermarkets in non-food retailing and alongside the subdued economic environment exhibited over much of the period. Flowers and plants are highly discretionary purchases, so consumers tend to cut back their spending on these products when their finances are tight. As a result of the difficult economic conditions at the start of the period, many consumers switched from specialist florists to cheaper non-specialist retailers such as supermarkets, which tend to bypass wholesalers to cut costs... purchase to read more
Industry Report - Industry Analysis Chapter
It has been a challenging five years for flower and plant wholesalers, which have struggled to adapt to weak economic conditions, a volatile market and the rising incidence of wholesale bypass. Plants and flowers are highly discretionary items, which means the industry has been exposed to the abrupt changes in consumer confidence and spending that have occurred during the past five years. Industry wholesalers have also faced tough price competition as a result of the growing influence and buying power of leading supermarkets. These factors are expected to result in industry revenue declining at a compound annual rate of 1.5% over the five years through 2015-16. Improving economic conditions in the current year have done little to stem the industry's decline.
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