Wilkins says scale allows companies
to leverage systems that smaller opera- tors often cannot afford. “You start to create synergies,” he
says. “You leverage purchasing power, technology platforms, operating systems — and at the end of the day, that should benefit the customer with a broader selection, improved delivery services and better exposure to technology.” LaFever emphasizes that scale only
matters when it meaningfully improves execution on the ground. Adding loca- tions for its own sake, he says, does little to strengthen service. “There’s no advantage at this point
to adding one more location,” LaFever says. “It doesn’t change our cost struc- ture or really benefit us.” Instead, he points to procurement
and logistics capabilities that become possible with sufficient scale. “Our procurement services — we have seven people in Quito and five in Bogotá — make it a lot easier to get product into the market when a branch needs to stock something,” he says. Hall agrees that technology is
becoming inseparable from consolida- tion. “These higher-order technologies — real-time availability, 24/7 ordering, substitutions, delivery tracking — all favor scale,” Hall says. Still, scale cuts both ways. Hall cau-
tions that over-concentration brings risk — particularly when private equity enters the picture. “There’s always risk with private
equity because of the margins they demand,” he says. “When you have fewer, bigger players, you attract capital that sees pricing power. That’s where balance matters.” Wilkins says he understands the
concerns surrounding private equity but emphasized that outcomes depend largely on the nature of the partnership. With the right partner, he says, private equity “can truly be transformational to a business.” “With our private equity partner it’s
more about solving problems, continu- ous process improvement, and pursuing excellence,” Wilkins says. “A company can improve its profitability through those core values while at the same time improving the value to the customer. That is what we aspire to do.”
He adds that the company and
its private equity partner understand that the health of the customer is most important. “If we simply just raise prices to
raise them, that not only puts us at a competitive disadvantage, it also ultimately hurts the customers,” Wilkins says. “It’s our responsibility to provide value to our customers. If they are successful, we are successful.”
Openings for Others For all the focus on scale, consolidation does not eliminate competition. As some companies streamline operations or centralize inventory, gaps can emerge for competitors — a dynamic that can create space for both existing and new players. Rob Dillon, CEO of Dillon Floral in
Bloomsburg, Pennsylvania, says his company has seen sustained growth as competitors consolidate — includ- ing becoming the primary supplier for florists who once treated Dillon as a sec- ondary option. “By reducing the number of whole-
sale businesses, you’re literally taking choices away from the florist,” Dillon says. His company has leveraged the opportunity by showing their customers what he calls “exceptional” and person- alized service. That approach — and the company’s success with it — shows that “there’s a place for us,” he says. David Armellini, CEO of Armellini
Logistics, which delivers to wholesalers throughout the country, says he’s seen this play out with other wholesalers. “Other wholesalers in the market
often gain share because retailers don’t want just one option,” he says. Hall adds that this tension —
between efficiency strengthening the supply chain and choice remaining essential — will shape the next phase of consolidation. “The concern isn’t consolidation
itself; it’s over-concentration,” he says. “Preserving balance, choice and diverse business models is critical.”
Amanda Jedlinsky is the senior director of content and communications for the Society of American Florists and editor in chief of Floral Management. Julie Martens Forney contributed to this article.
How Florists Can Adapt
In a changing wholesale landscape, relationships, flexibility and communication matter more than ever. Whether consolidation brings expanded access or unexpected gaps, these strategies can help florists stay resilient as the supply chain continues to evolve.
Stay relationship-focused. “The relationship between the salesperson and retailer is so important,” says Theresa Colucci, AAF, AIFD, PFCI, owner of Meadowscent in Gardiner, New York. “When you don’t have a place to walk in and see product, you rely on that person to help you put colors together and tell you what’s new.”
Maintain backup suppliers. As wholesale options shift, Colucci says relying on a single supplier can leave little room to maneuver. Consolidation has reinforced the importance of having more than one wholesaler she can turn to — especially when same-day needs arise. “Retailers want to have at least
two or three different sources they can call today,” Colucci says. “That’s what gives you flexibility when something changes.”
Communicate early when ownership changes. John S. Wilkins, CEO of Delaware Valley Floral Group, urges florists to engage quickly with new wholesale operators. “Make sure you’re communicating heavily what your needs are — and do it early,” he says.
Ask how integration will roll out — and over what timeline. When a wholesaler changes hands, operational shifts often happen gradually, not all at once. Understanding when ordering systems, product mix or service models may change can help florists plan — especially around peak holidays, says Pat Dahlson, CEO of Mayesh.
The magazine of the Society of American Florists (SAF) 29
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44
