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50 of the Largest Companies Operating in the Florist Sector Occupy 6 Percent of the Market

DUBLIN, Ireland--(BUSINESS WIRE)--June 9, 2006--Research and Markets has announced the addition of the First Research report: Florists - Industry Profile to their offering.

Brief Excerpt from Industry Overview Chapter:

The retail florist industry includes about 22,000 retail flower shops with combined annual revenues of $7 billion. While there are no national florist chains, independent florists are usually linked into national wire services providers FTD and Telaflora. 1-800-FLOWERS.COM has over 100 franchised and company-owned shops and franchisor Kabloom also has over 100 franchise locations. Independent florists are usually linked into wire service providers, such as FTD and Teleflora, which connect customers with florists. The industry is highly fragmented: the 50 largest companies holding just 6 percent of the market. Average annual sales per flower shop are about $300,000.

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 highly labor-intensive, with annual sales per employee of about $60,000.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major products are cut flower arrangements, potted plants, and loose cut flowers. Flower arrangements account for 55 percent of industry revenue, potted plants for 15 percent. Stores may also sell vases, artificial flowers, and other gift items. The top-selling flowers are roses, carnations, and lilies.

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