Industry briefing

Floral is one of the highest-margin square feet in the store.

The benchmark data is clear: floral is a high-margin, resilient department. What it earns depends on one thing — how you run it.

Source: IFPA Supermarket Floral Benchmark Reports, 2023 & 2024

46-48%gross margin on floral — among the highest in the store
~27%of floral sales drop to store profit after labor & shrink
52%gross margin for full-service floral, vs 38% self-service

Plenty of operators treat floral as a nice-to-have on the edge of the store. The benchmark numbers tell a different story: it is one of the most profitable departments in the building — and the gap between a good floral program and a neglected one is enormous.

A high-margin department, hiding in plain sight

Across the IFPA benchmark, supermarket floral runs a 46-48% gross margin and has held that range every year from 2021 to 2024. Very few categories in the store come close. And floral keeps taking a bigger share of the basket: it has grown to nearly 2% of total store sales, the highest share since IFPA began tracking the benchmark.

~27% of floral sales land as store profit, after labor and shrink — and it held flat through 2024's budget squeeze.

A high gross margin, a controllable cost structure, and a contribution that does not collapse in a downturn. That is a rare combination in the perimeter.

IFPA Supermarket Floral Benchmark, 2023 & 2024 (gross margin less labor and shrink).

The catch: how you run it decides the margin

Here is the part most operators miss. When IFPA breaks the benchmark down by how the department is staffed, the spread is dramatic. The flowers are the same. The margin is not.

Full-service departments post a 52% gross margin with shrink as low as 7% — and the highest sales per store of any model. Self-service departments earn just 38% margin with 10% shrink. A 14-point margin gap, decided not by the product but by whether someone is actually tending the department.

52% vs 38%gross margin: full-service vs self-service floral
7% vs 10%shrink: full-service keeps far less in the bin
Highestsales per store come from full-service departments

Self-service, left to run itself

  • 38% gross margin
  • 10% shrink — more flowers in the bin
  • Gaps on the shelf, quality drifts
  • Your staff's labor whenever it is tended

Service-managed floral

  • 52% gross margin
  • 7% shrink — far less waste
  • Display built and kept full, every day
  • No floral labor on your team

And it holds up in a downturn

2024 was a hard year for shoppers. IFPA's consumer data found 87% of Americans changed how they shop to manage expenses — 82% chasing lower prices, 67% cutting overall spending. Floral still held its profit contribution and stayed, in IFPA's words, "an important part of life." Shrink steady at 9%, labor at 12%: a predictable cost structure, not a gamble.

Where Ecuagarden fits

The benchmark points one direction: the stores that capture floral's margin run it as a managed service, not a self-serve afterthought. That is exactly our model.

As producer, importer and distributor in one company, we run your floral department at the high-margin end of that benchmark — farm-direct premium roses, sold final with no consignment, and our own team building and maintaining the display so your staff never touches a bucket. You get the 52% end of the curve without adding floral labor or floral risk.

See what your floral department could earn.

Tell us about your chain and we'll build a proposal tailored to your locations. We reply within one business day.

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