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Flower Shops Are O’ So Rosy
May 2009 | Issue Four 
The estimates and data contained herein are made using publicly available information and data and rules of thumb for different industries. BizEquity does notrepresent or endorse the accuracy or reliability of any advice, opinion, statement or any other information displayed or distributed through this report or its website.
 
 
Flower Shops Are O’ So Rosy
Springtime. It's been a long, awful winter. Now that the bad weather is over, consumers are looking toengage that wonderful rite of passage that begins in May and carries on throughout the summer. I'm talkingabout the wonderful world of flowers. Such a pretty business model!
FLORISTS LOOK FORWARD TO THE MAY FLOWERS THAT APRIL SHOWERS BRING
After a winter-long hibernation, people just can’t seem to get enough of the outdoors come spring. Somuch so that they often want to bring the outdoors inside and out, or give the outdoors to others. And by‘outdoors’ I mean flowers, of course. What better way to celebrate the season than to be surrounded byflowers while you’re having a bbq get together, or just staying in?And it's not just women who are so taken with flowers. Indeed, men patronize the local florist shop as well.No, not every guy is fascinated with roses and petunias. But just about every guy wants to make sure thatthe landscaping on his property looks as good as the next-door neighbor's. In addition, the value of a pieceof real estate can be positively affected by the addition of flower beds and various bushes and tree species.It can be seen, therefore, that the appeal of a business based on floristic concerns can cross both genders.This is an important point to keep in mind when thinking about the marketing aspects of a flower store.
ECONOMIC DOWNTURNS DO HAVE A NEGATIVE EFFECT ON THE FLOWERINDUSTRY
Of course, even though the cultivation of plants for aestheticenhancement is a worthwhile business undertaking, let's not kidourselves here -- the recession has not been kind to florists. At theend of the day, it all comes down to the bottom line. Money is tight;discretionary money is even tighter. Consumers have choices tomake. Not everything is essential.As you can imagine, the valuation of florists is therefore notnecessarily on the upswing in every city. Since people have decidedto pullback their spending patterns in response to the recession, purchasing floral arrangements andgarden materials is not high on the list of absolute needs.
 
 
LET'S HAVE A LOOK AT THE BEAUTIFUL DATA
BizEquity has generated a data set that will give you an idea of the changes in valuation that have occurredfor this industry in some major cities around the country.
 
City FrequencyCurrentValuationOldValuation Change
Los Angeles 635 $109,417 $132,240 -17%Miami 633 $166,765 $351,282 -53%Houston 630 $89,579 $85,862 4%New York 439 $81,669 $141,813 -42%Chicago 381 $104,678 $98,024 7%San Antonio 355 $100,574 $95,703 5%Dallas 339 $129,699 $138,096 -6%Brooklyn 332 $80,720 $78,010 3%San Francisco 314 $105,173 $116,729 -10%San Diego 303 $87,100 $79,257 10%Portland 248 $156,968 $91,200 72%Cleveland 231 $96,819 $95,721 1%Las Vegas 228 $75,539 $98,510 -23%Atlanta 193 $115,673 $132,043 -12%Austin 184 $120,282 $66,738 80%Philadelphia 177 $73,090 $44,230 65%Seattle 172 $90,392 $110,715 -18%San Jose 169 $74,767 $50,692 47%Columbus 166 $116,328 $70,523 65%Orlando 165 $88,432 $111,348 -21%
You'll note that the above table is ordered by frequency. Los Angeles has the most shops in our survey.Hey, what else would you expect from the City of Angels, right? Unfortunately, the valuations there havedeclined by 17%.Don't fret, LA. You weren't the home of the biggest drop -That title goes to Miami. The party city is lookingat a more than 50% evaporation in valuation.The biggest gainer in valuation can be found in Austin. Business owners in this Texas location will behappy to note that their chosen line of work has seen valuations rise by a whopping 80%! The continuedinflux of people moving to Austin, along with the growth of new businesses in the area could certainlycontribute to this hefty growth. Or maybe Austinites just like smelling the roses.Fortunately, our data suggests that the florist industry doesn’t necessarily show an overwhelming pattern of decline. Some areas have big gains, while others are on significant downturns. However, there does seemto be a regional aspect to the numbers.
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