American Floral Endowment Update - Fall 2002

Consumer Tracking Study - A Marketing Research Update

A Profile of ConsumersÕ Floral Buying Habits at Garden Centers

By Doreen Zavada, Ipsos-NPD, Inc.

Setting the stage

This past crop year (Sept. 00 - Aug.Õ01) was a relatively good year for the group of outlets classed as Garden Centers. Consumers spent 10% more on floral product purchases at these places than they did in the year prior. That lift in spending was supported by an increase in the number of purchase occasions made - not from customers paying more for their purchases.

These gains were stronger than those noted for the entire floral industry and as a result, the share of consumer spending for floral products accounted for by Garden Centers moved from 20 to 21%, and their share increased from 15% to 16% of all floral purchase occasions. Expressed another way. Garden Centers command one in every five dollars spent on floral products and one in every six floral purchase occasions.

Purchase Characteristics

The dollar return to the retailer on each floral product purchase occasion made at Garden Centers ranks as the third largest among the major channels of distribution:

When making a floral purchase at a Garden Center, customers tend to buy two different products on each store trip Ñ as they do at Home Centers. This is unlike the pattern at Florist Shops and Supermarkets, where the customer is more likely to buy just one type of product at a time:

Transactions per Occasion
Sept. ‘00-Aug. ‘01
Garden Centers 1.9
Home Centers 1.9
Discount Chains 1.7
Supermarkets 1.2
Florist Shops 1.2
Internet Retailers 1.2

Product Mix

Garden Centers (as their name reveals) primarily sell outdoor bedding plants. Their floral business is more dependent on this product segment than is the case in any of the other outlet types. Nearly eight of every ten floral transactions in Garden Centers are for bedding plants. Further, it was increased buying of bedding plants at Garden Centers that supported their stronger position in the market this crop year.

Garden Centers
% Total Dollars % Total Transactions
Year End August 2000 2001 2000 2001
Outdoor/Bedding Plants 75 79 76 79
House Plants 10 8 11 10
Foliage Plants 10 8 9 8
Fresh Cut Flowers 3 3 3 2
Artificial/Dried 2 2 1 1
Total 100% 100% 100% 100%

As a result, the share accounted for by Garden Centers of all bedding plant purchases made this year increased two points. Discount Chains also fared well with bedding plants this year. Share points were gained by Garden Centers and Discount Chains as Supermarkets, Home Centers, and the group of Other Specified Outlets lost standing in the bedding plant market.

% Share of Outdoor/Bedding Plant Transactions
Bedding Plant Transactions
Year End August 2000 2001
Garden Centers 34 36
Home Centers 21 20
Discount Chains 17 19
Supermarkets 8 7
Other Specified Outlets 14 12
All Remaining 6 6
Total 100% 100%

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