Views on Management

Tim Rhodus
Department of Horticulture and Crop Science, The Ohio State University

The combined value of wholesale, retail, and landscape sales of perennials by PPA commercial members in the U.S. during 1992 was $222 million or 29% of an estimated $775 million in gross sales. Furthermore, perennial sales in 1992 increased over 1991 levels for 81% of all firms. These results were obtained from the 1992 Perennial Sales Survey conducted during January, 1993. Questionnaires were sent to members involved in growing, selling, or using perennials for commercial trade. Of the 992 surveys sent out, 581 (59%) were returned, usable surveys totaled 529, or 53%. This provides a margin of error of less than one percent. Responses were distributed throughout six different regions of the U.S.: South - 58, Great Lakes - 82, Central - 106, Western - 57, Mid-Atlantic - 103, Northeast - 116, and unidentified - 7. A map of the U.S. showing each of these regions is presented in Figure 1.

Sales of perennials in the U.S. were strongest in the Great Lakes region, $58.8 million, but the percentage of gross sales attributed to perennials was highest in the Northeast region, 36.3%, Table 1. While firms in the Southern region recorded a significant level of gross sales in 1992, $117.6 million, perennials accounted for only $8.5 million or 7.2% of regional gross sales.

Sales by firm specialization was determined by categorizing firms by their primary source of revenue. Firms indicating that 50% or more of their 1992 gross sales were generated from a single sales category were classified as specializing in that type of business, otherwise they were considered a "Mixed Enterprise" firm. Overall, wholesaler produced an estimated $159.8 million in perennials during 1992, Table 2. This represented an estimated 43% of gross sales for these firms. At the retail level, perennial sales totaled $34.6 million, or 17% of gross sales. Landscape Services, Mixed Enterprises, and firms specializing in some other field (hardware, home repair, etc.) sold an additional $27.6 million in perennials during 1992, which was 27% of their gross sales. Note: the estimated wholesale value of perennials in the U.S. is reasonably accurate. However, the estimated value of perennial sales through retail and landscape channels understates the true value because of the small percentage of garden centers and landscape firms belonging to PPA. For example, there are 25,000 garden centers in the U.S. Of these, 5,000 can be characterized as traditional (year-round, full-service) garden centers. This survey identified only 155 firms specializing in garden center sales. Similar issues exist for landscape firms.

Changes in sales between 1991 and 1992 were determined for eight different categories of products, Table 3. Overall, sales of perennials increased in 1992 for 81.6% of all firms, more than any other product category. A majority of firms reported increased sales for perennials, annuals, herbs, grasses, ferns, and landscape services. Regional differences can be seen by examining the highlighted values in Table 3. The Northeast region was found to have the highest percentage of firms reporting increased sales for perennials. The Central region had the most firms reporting an increase in the sale of annuals, herbs, and hard goods. The Great Lakes region had the most firms reporting an increase in the sale of grasses, landscape services, and cut flowers. The Mid-Atlantic region had the most firms reporting an increase in the sales of ferns. Changes in sales between 1991 and 1992 were also examined according to firm type, Table 4. Sales of perennials increased for more retail firms than any other firm type. In contrast, increased sales were reported for more wholesale firms for herbs, ferns and cut flowers. Mixed enterprise firms most frequently reported increases in sales of annuals and grasses.

The most popular genus sold in the U.S. for 1992 was Hosta, Table 5. Over 140 different genera were listed by respondents as their "three best sellers" for 1992. Hosta was identified by 14% of all firms as one of their top three sellers, followed by Hemerocallis, Coreopsis, Astilbe, and Phlox. The top 20 genera accounted for 80.8% of all genera identified. Regional differences in the best selling genera are presented in Tables 6 and 7. Generally speaking, there are few differences in the popularity of perennials from one region of the country to another. Of the top 10 best sellers for the U.S., seven, eight, or nine of these genera were found in the top 10 for any given region of the country. Additionally, while 20 genera accounted for 81% of all responses, when viewed by region the top 20 genera in each region accounted for a minimum of 79% of all responses (Western region) to a maximum of 90% of all responses (Great Lakes region).

The market for perennials in 1993 is expected to be increasing for 20 out of 47 selected genera, according to a majority of all respondents, Table 8. Of the top 20 best selling genera for 1992 (genus name is highlighted), sales of 14 of the genera are predicted to increase in 1993. Less than 50% of all respondents indicated growth in sales for Phlox, Campanula, Dianthus, Artemisia, Delphinium, and Chrysanthemum. While increased sales of Hosta are predicted by 75% of all respondents, 60% or more of all respondentssales predicted increased sales in 1993 for: Veronica, Coreopsis, Geranium, ornamental grasses, ferns, Salvia, Astilbe, Echinacea, Hemerocallis, and herbs. Declining sales in 1993 for Gergemoa, Lupinus, Gaillardia, Cerastium, and Geum are predicted by at least 15% of all respondents.

Regional differences in the market outlook for these same 47 genera are presented in Tables 9 and 10. Sales of the top 10 genera are predicted to increase in 1993 in all regions, according to a majority of respondents. The one exception is Astilbe in the Southern region. Only 47% of the respondents indicated that sales are likely to increase for 1993. In contrast, majority opinion differs on the likelihood of sales increases for the second 10 genera across the different regions. Genera predicted to decline in 1993, according to 20% or more of the respondents in that region include: Campanula (South), Delphinium (South and Mid-Atlantic), Gergemoa (Central, South, and Northeast), Lupinus (Central, South, and Mid-Atlantic), Gaillardia (Northeast), Cerastium (Central, South, and Great Lakes), and Geum (all regions).

In closing, the information presented above represents a summary of the information collected in the Perennial Sales Survey. Additional information is being tabulated and will be published in future reports. This author wishes to express sincere gratitude to all those members participating in this study. Without your cooperation this information would not be available.

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