Views on Management

Tim Rhodus
Department of Horticulture, The Ohio State University


The combined value of wholesale, retail, and landscape sales of perennials by PPA commercial members in the U.S. and Canada during 1993 was $338.4 million or 25% of an estimated $1.37 billion in gross sales. Furthermore, perennial sales in 1993 increased over 1992 levels for 75% of all firms. These results were obtained from the 1993 Perennial Sales Survey conducted during January, 1994. Questionnaires were sent to members involved in growing, selling, or using perennials for commercial trade. Of the 1,161 surveys sent out, 373 (32%) were returned, usable surveys totaled 357, or 31%. This provides a margin of error of plus or minus five percent. Responses were distributed throughout six different regions of the U.S. and Canada.

Sales of perennials by PPA members were strongest in the Great Lakes region, $94.1 million, but the percentage of gross sales attributed to perennials was highest in Canada, 43%, followed by the Northeastern region, 33%, Table 1. Sales by firm specialization was determined by categorizing firms by their primary source of revenue. Firms indicating that 50% or more of their 1993 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, wholesalers produced an estimated $250 million in perennials during 1993, Table 2. This represented an estimated 31% of gross sales for these firms. At the retail level, perennial sales totaled $66.6 million, or 17% of gross sales. Landscape Services, Mixed Enterprises, and firms specializing in some other field (hardware, home repair, etc.) sold an additional $21.6 million in perennials during 1992, which was 12% 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.

Sales of perennials in 1993 exceeded expectations for 31% of all respondents, and were about what was expected for 50% of all respondents, Table 3. In contrast, sales of grasses were below expectations for 33% of all respondents. Overall, 1993 sales of herbs, ferns, annuals, and landscape services were at or above expectations for 77% to 87% of all respondents. Regional differences were found in the percentage of respondents who reported that sales exceeded their expectations, Table 4. Most notably, sales of perennials exceeded expectations for 43% of respondents in Canada. Sales of herbs, grasses, and ferns were also above expectations for 23% to 38% of the respondents from that region. Sales of annuals were unexpectedly high in the Southern region and sales of landscape services were above expected levels for 31% of the respondents in the Central region.

The dollar value of perennial sales increased between 1992 and 1993 for 75% of all firms, Table 5. As observed a year ago, increased perennial sales were more frequent than any of the other five product categories. Perennial sales increased for all reporting firms located in Canada and 81% of those firms located in the Great Lakes region. Sales increases were most frequent for herbs, grasses, and ferns in the Southern region; for annuals in the Western and Canadian regions, and for landscape services in the Canadian region. Increases in sales between 1992 and 1993 averaged 43% for perennials, Table 6. Regionally, average sales increases for perennials ranged from 27% in the Northeast to 74% in Canada. Significant increases in sales were also observed for grasses (74% average increase in the Central region), herbs (49% in Canada), ferns (68% in Canada), annuals (30% in the Western region), and landscape services (55% in the West).

The most popular genus sold in the U.S. for 1993 was Hosta, Table 7. Over 70 different genera were listed by respondents as their "three best sellers" for 1993. Hosta was identified by 17% of all firms as one of their top three sellers, followed by Hemerocallis, Coreopsis, Astilbe, and grasses. The top four selling genera of 1993 were also the top four sellers in 1992. Grasses, which had been #8 in 1992 increased in popularity to #5 in 1993. Phlox, which had been #5 in 1992 slipped to #8 in 1993. Notable increases in popularity were observed for Herbs, Geum, and Heuchera. Decreases in popularity were noticed for Dianthus and Salvia.

The top 20 genera in 1993 accounted for 84.2% of all genera identified as the three best sellers. Regional differences in the best selling genera are presented in Tables 8 and 9. With the exception of the Western region, there were 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., six, seven, eight, or ten of these genera were found in the top 10 for any given region of the country. Other popular genera in the West included: Geranium, Heuchera, Aquilegia, Lavandula, Sempervivum, and Erigeron. Additionally, while 20 genera accounted for 81% of all responses, when viewed by region the top 20 genera in each region accounted for 95% to 100% of all responses.

The market for perennials in 1994 is expected to be increasing for 17 out of 47 selected genera, according to a majority of all respondents, Table 10. Of the top 20 best selling genera for 1993 (genus name is highlighted), sales of 15 of the genera are predicted to increase in 1994. Less than 50% of all respondents indicated growth in sales for Phlox, Dianthus, Iris, 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 1994 for: Geum, Astilbe, Coreopsis, Hemerocallis, Grasses, Salvia, Echinacea, Ferns, Veronica, and Heuchera. Declining sales in 1994 for Chrysanthemum, Lupinus, Bergenia, Oenothera, Gaillardia, Polemonium, Cerastium, and Geranium are predicted by at least 15% of all respondents.

Regional differences in the market outlook for these same 47 genera are presented in Tables 11 and 12. Sales of the top 10 genera are predicted to increase in 1994 in all regions, according to a majority of respondents. The one exception is Veronica in the Northeast region. Only 45% of the respondents indicated that sales are likely to increase for 1994. 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: Gaillardia (West), Lupinus (South, and Mid-Atlantic), Cerastium (South), and Geranium (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.



Table 1. Value of perennial sales and gross sales by region - 1993.



REGION

Perennials

Gross Sales		 Share of

Perennials

Great Lakes $ 94,060,739 $ 352,376,817 26.7%
Mid Atlantic 71,692,761 238,420,031 30.1%
Central 68,019,651 287,692,090 23.6%
Northeastern 49,746,350 150,916,991 33.0%
Southern 36,251,380 282,430,745 12.8%
Western 14,129,205 50,276,573 28.1%
Canada 4,468,689 10,400,055 43.0%
Total $ 338,369,000 $ 1,372,513,000 24.7%




Table 2. Value of perennial sales and gross sales by type of firm - 1993.



FIRM SPECIALIZATION

Perennials

Gross Sales		 Share of

Perennials

Wholesale 250,175,910 802,706,445 31.2%
Retail 66,602,248 393,478,686 16.9%
Landscape Services 10,618,434 108,297,106 9.8%
Other 164,154 1,293,606 12.7%
Mixed Enterprises 10,808,029 66,737,459 16.2%




Table 3. Comparison of sales for 1993 to expectations - by product category (%).

Product Category Expected Above Below
Perennials 50 31 19
Herbs 57 21 23
Grasses 49 18 33
Ferns 63 17 20
Annuals 58 22 21
Services 66 21 13




Table 4. Percentage of respondents indicating 1993 sales were ABOVE their expectations.

Perennials Herbs Grasses Ferns Annuals Services
Southern 34 29 15 30 29 21
Great Lakes 28 16 18 21 21 22
Central 29 20 14 8 24 31
Western 22 38 25 23 19 8
Canada 43 29 22 0 14 20
Mid-Atlantic 34 21 25 18 17 24
Northeastern 32 13 15 14 25 16
Overall 31 21 18 17 22 21






Table 5. Percentage of respondents indicating 1993 sales increased over 1992 - by Region.



Perennials Herbs Grasses Ferns Annuals Landscape

Services

Southern 77 65 60 75 52 35
Great Lakes 81 41 49 52 42 43
Central 63 41 49 43 37 44
Western 77 60 56 50 60 20
Canada 100 63 56 38 50 50
Mid-Atlantic 79 57 50 48 49 48
Northeastern 70 38 52 45 60 45
Overall 43 26 37 28 19 26




Table 6. Average INCREASE in 1993 sales over 1992 - by Region (%).



Perennials Herbs Grasses Ferns Annuals Landscape

Services

Southern 57 17 20 19 25 31
Great Lakes 41 17 27 19 16 30
Central 68 16 74 63 18 25
Western 31 36 25 25 30 55
Canada 74 49 50 68 13 20
Mid-Atlantic 33 31 33 23 17 28
Northeastern 27 32 33 16 19 19
Overall 75 48 52 50 50 43




Table 7. Genera sold most in 1993.

Rank in 1993

Genera

Percent		 Rank in 1992
1 Hosta 16.8% 1
2 Hemerocallis 12.5% 2
3 Coreopsis 8.4% 3
4 Astilbe 7.8% 4
5 Grasses 4.5% 8
6 Phlox 4.1% 5
7 Rudbeckia 3.2% 7
8 Chrysanthemum 2.8% 11
9 Herbs 2.7% 19.5
10.5 Sedum 2.5% 6
10.5 Delphinium 2.5% 10
12 Geum 2.4% **
13.5 Echinacea 2.2% 18
13.5 Ferns 2.2% 19.5
16 Veronica 1.6% 16.5
16 Dianthus 1.6% 9
16 Dicentra 1.6% 14
19 Salvia 1.5% 12
19 Iris 1.5% 14
19 Heuchera 1.5% **
Total 84.2%


** Not in top 20 for 1992



Table 8. Genera sold most in 1993 by region.

SOUTH GREAT LAKES CENTRAL
Rank Genera Percent Genera Percent Genera Percent
1 Hosta 26.5% Hosta 46.0% Hosta 37.3%
2 Hemerocallis 11.8% Hemerocallis 11.1% Hemerocallis 10.2%
3 Phlox 11.8% Coreopsis 9.5% Echinacea 5.1%
4 Grasses 5.9% Grasses 6.3% Coreopsis 5.1%
5 Herbs 5.9% Phlox 4.8% Astilbe 5.1%
6 Coreopsis 5.9% Ferns 3.2% Paeonia 3.4%
7 Ferns 5.9% Astilbe 3.2% Grasses 3.4%
8 Verbena 5.9% Chrysanthemum 3.2% Rudbeckia 3.4%
9 Lobelia 2.9% Campanula 3.2% Phlox 3.4%
10 Helleborus 2.9% Herbs 1.6% Iris 3.4%
11 Echinacea 2.9% Gypsophila 1.6% Dianthus 3.4%
12 Aquilegia 2.9% Liatris 1.6% Chrysanthemum 3.4%
13 Iberis 2.9% Dianthus 1.6% Herbs 1.7%
14 Veronica 2.9% Lavandula 1.6% Sedum 1.7%
15 Salvia 2.9% Geranium 1.6% Aquilegia 1.7%
16 ** ** Platycodon 1.7%
17 ** ** Oenothera 1.7%
18 ** ** Lupinus 1.7%
19 ** ** Delphinium 1.7%
20 ** ** Perovskia 1.7%

** No additional genera identified



Table 9. Genera sold most in 1993 by region.

WEST MID-ATLANTIC NORTHEAST
Rank Genera Percent Genera Percent Genera Percent
1 Hosta 16.1% Hosta 16.4% Hemerocallis 17.9%
2 Geranium 12.9% Hemerocallis 13.4% Hosta 16.4%
3 Heuchera 9.7% Chrysanthemum 11.9% Coreopsis 11.9%
4 Aquilegia 6.5% Coreopsis 9.0% Phlox 10.4%
5 Lavandula 6.5% Grasses 6.0% Delphinium 7.5%
6 Phlox 6.5% Herbs 6.0% Astilbe 7.5%
7 Herbs 3.2% Rudbeckia 6.0% Lavandula 4.5%
8 Sempervivum 3.2% Phlox 6.0% Aquilegia 3.0%
9 Grasses 3.2% Astilbe 4.5% Ferns 3.0%
10 Erigeron 3.2% Sedum 3.0% Campanula 3.0%
11 Lithodora 3.2% Liriope 1.5% Rudbeckia 1.5%
12 Lewisia 3.2% Artemisia 1.5% Erica 1.5%
13 Salvia 3.2% Boltonia 1.5% Vinca 1.5%
14 Hemerocallis 3.2% Solidago 1.5% Grasses 1.5%
15 Cerastium 3.2% Scabiosa 1.5% Platycodon 1.5%
16 Campanula 3.2% Tiarella 1.5% Dianthus 1.5%
17 Primula 3.2% Echinacea 1.5% Chrysanthemum 1.5%
18 Paeonia 3.2% Geranium 1.5% Dicentra 1.5%
19 Lupinus 3.2% Heuchera 1.5% Iris 1.5%
20 ** Ferns 1.5% Artemisia 1.5%

** No additional genera identified



Table 10. Sales outlook for 1994.

OVERALL
Genera Same

(%)

 Incr

(%)

 Decr

(%)

1 Hosta 23 75 2
2 Geum 23 73 4
3 Astilbe 27 71 2
4 Coreopsis 29 66 4
5 Hemerocallis 27 66 7
6 Grasses 29 65 5
7 Salvia 35 63 3
8 Echinacea 35 63 3
9 Ferns 34 62 3
10 Veronica 36 61 3
11 Heuchera 38 61 2
12 Perovskia 37 59 4
13 Pulmonaria 36 58 6
14 Rudbeckia 40 57 3
15 Herbs 35 57 8
16 Sedum 45 52 3
17 Dicentra 46 51 3
18 Phlox 46 48 6
19 Lavandula 46 48 7
20 Artemisia 44 48 9
21 Dianthus 48 46 6
22 Aster 44 45 12
23 Paeonia 50 44 6
24 Epimedium 49 43 9
25 Alchemilla 50 42 9
26 Aquilegia 51 41 8
27 Campanula 53 41 6
28 Iris 57 39 4
29 Brunnera 51 39 10
30 Delphinium 49 38 13
31 Chrysanthemum 47 38 15
32 Monarda 53 37 10
33 Ceratostigma 52 36 12
34 Primula 50 35 14
35 Lamium 59 33 7
36 Papaver 58 31 11
37 Platycodon 59 30 11
38 Achillea 62 30 8
39 Physostegia 61 28 11
40 Lupinus 50 28 22
41 Bergenia 55 26 19
42 Iberis 65 23 12
43 Oenothera 62 23 15
44 Gaillardia 60 17 22
45 Polemonium 68 14 17
46 Cerastium 64 14 22
47 Geranium 58 11 31




Table 11. Sales outlook for 1994 by region.



WEST CENTRAL SOUTH


Genera		 Same

(%)

 Incr

(%)

 Decr

(%)

 Same

(%)

 Incr

(%)

 Decr

(%)

 Same

(%)

 Incr

(%)

 Decr

(%)

1 Hosta 28 72 0 16 83 2 21 79 0
2 Geum 26 74 0 14 80 5 30 56 14
3 Astilbe 44 56 0 19 79 2 35 63 2
4 Coreopsis 29 63 9 18 79 4 32 66 2
5 Hemerocallis 18 72 10 12 81 7 28 63 9
6 Grasses 35 62 3 25 73 2 34 64 2
7 Salvia 35 62 3 35 62 4 16 84 0
8 Echinacea 43 54 3 27 71 2 36 60 4
9 Ferns 39 58 3 35 60 5 21 74 5
10 Veronica 41 56 3 29 68 4 29 71 0
11 Heuchera 49 46 5 32 66 2 36 62 2
12 Perovskia 40 57 3 29 69 2 40 53 8
13 Pulmonaria 39 55 6 33 59 9 22 67 11
14 Rudbeckia 53 39 8 34 62 3 33 64 2
15 Herbs 34 66 0 30 64 6 34 58 8
16 Sedum 36 56 8 38 59 4 40 58 2
17 Dicentra 35 62 3 33 62 6 58 38 5
18 Phlox 47 44 8 44 49 7 43 54 2
19 Lavandula 47 53 0 44 46 10 58 38 5
20 Artemisia 35 56 9 43 45 13 29 71 0
21 Dianthus 54 41 5 53 45 2 51 44 4
22 Aster 58 36 6 33 54 12 45 43 11
23 Paeonia 52 39 10 45 51 4 51 41 8
24 Epimedium 42 45 13 57 33 10 40 49 11
25 Alchemilla 41 50 9 54 44 2 50 31 19
26 Aquilegia 50 42 8 47 49 4 50 48 2
27 Campanula 54 43 3 53 42 5 65 25 10
28 Iris 57 31 11 51 45 4 51 47 2
29 Brunnera 57 37 7 45 51 4 39 45 15
30 Delphinium 53 39 8 50 46 4 50 28 23
31 Chrysanthemum 56 28 17 42 35 24 45 50 5
32 Monarda 59 21 21 50 46 4 53 37 9
33 Ceratostigma 66 25 9 50 29 21 44 44 13
34 Primula 49 40 11 56 33 11 38 46 16
35 Lamium 55 30 15 57 37 6 59 31 10
36 Papaver 58 33 9 62 28 10 54 23 23
37 Platycodon 61 21 18 48 40 12 50 38 13
38 Achillea 62 30 8 56 40 4 55 34 11
39 Physostegia 66 25 9 54 38 8 60 25 15
40 Lupinus 50 26 24 50 34 16 49 17 34
41 Bergenia 53 35 12 50 36 14 49 29 23
42 Iberis 69 22 8 63 23 13 63 27 10
43 Oenothera 63 17 20 66 26 8 63 19 19
44 Gaillardia 58 11 31 68 18 14 59 23 18
45 Polemonium 65 12 24 63 22 15 56 22 22
46 Cerastium 63 22 16 61 18 20 47 15 38
47 Geranium 59 9 32 63 13 25 56 14 31




Table 12. Sales outlook for 1994 by region.

GREAT LAKES NORTHEAST MID-ATLANTIC


Genera		 Same

(%)

 Incr

(%)

 Decr

(%)

 Same

(%)

 Incr

(%)

 Decr

(%)

 Same

(%)

 Incr

(%)

 Decr

(%)

1 Hosta 18 82 0 45 50 5 24 74 3
2 Geum 20 78 2 28 70 1 21 76 3
3 Astilbe 22 77 2 26 69 5 23 74 3
4 Coreopsis 29 68 3 38 57 5 28 71 1
5 Hemerocallis 31 63 6 36 58 7 30 66 4
6 Grasses 30 64 7 30 60 9 28 67 6
7 Salvia 31 65 5 45 51 3 33 67 0
8 Echinacea 30 67 3 45 52 4 28 71 1
9 Ferns 37 59 3 44 52 4 25 74 2
10 Veronica 32 65 3 49 45 6 23 76 2
11 Heuchera 45 55 0 42 58 0 28 70 3
12 Perovskia 24 71 5 39 56 5 52 47 2
13 Pulmonaria 32 64 4 49 45 7 37 61 2
14 Rudbeckia 38 62 0 48 49 2 30 67 3
15 Herbs 45 45 9 40 51 9 25 63 12
16 Sedum 50 48 2 52 45 3 43 55 1
17 Dicentra 43 50 7 53 46 1 45 54 2
18 Phlox 44 50 6 52 41 7 42 55 3
19 Lavandula 53 37 10 44 50 6 33 59 8
20 Artemisia 44 39 16 52 40 7 49 45 6
21 Dianthus 40 49 11 49 45 6 40 51 9
22 Aster 42 42 15 49 41 9 40 47 13
23 Paeonia 54 39 7 48 46 6 48 47 5
24 Epimedium 52 44 4 55 37 8 43 47 10
25 Alchemilla 48 45 7 51 40 9 53 36 10
26 Aquilegia 52 35 13 57 33 9 45 46 9
27 Campanula 46 43 11 52 44 3 50 42 8
28 Iris 63 33 3 64 35 1 53 42 5
29 Brunnera 54 38 8 59 32 10 50 36 14
30 Delphinium 56 29 15 46 44 10 41 34 25
31 Chrysanthemum 52 33 15 54 33 13 38 51 10
32 Monarda 54 37 8 55 34 11 51 35 14
33 Ceratostigma 63 28 9 53 33 14 42 52 6
34 Primula 47 42 10 54 31 15 53 23 24
35 Lamium 55 34 11 60 36 4 64 30 7
36 Papaver 66 25 8 60 32 9 47 39 15
37 Platycodon 58 30 12 71 21 7 52 34 14
38 Achillea 66 25 10 68 25 7 60 31 9
39 Physostegia 60 28 12 66 22 13 61 30 10
40 Lupinus 45 31 24 58 28 14 42 28 31
41 Bergenia 56 28 16 58 21 21 60 18 23
42 Iberis 60 26 14 70 18 12 60 28 12
43 Oenothera 61 19 20 64 22 14 56 30 14
44 Gaillardia 62 14 24 61 16 22 55 19 25
45 Polemonium 72 13 15 77 9 14 64 13 23
46 Cerastium 68 6 26 71 15 14 66 11 23
47 Geranium 56 7 37 61 9 30 57 13 30

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