How to Make Floral Sales Bloom

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How to Make Floral Sales Bloom

11/16/2016

The research is summarized in a report, “Trends in Mass-Market Floral.” It is based on questionnaires returned by floral buyers representing nearly 15,000 American stores, including chain and independent supermarkets, grocery/service wholesalers and other mass marketers.

Some of the biggest issues retailers are considering in floral sales apply to the grocery sector as a whole: personnel training, sales occasions, sourcing, product assortment and category management. Mass-market floral sales averaged $225,000 in 2015, showing average year-over-year sales growth of 5.6 percent.

A central focus of the report was service level in floral: all full-service, all self-service, or a combination of the two (“mixed mode”). “Year-over-year sales growth trended somewhat higher for those operations with mixed-mode service compared to those with primarily full- or self-service operations, suggesting that the mixed-mode floral operators may be better at tailoring their store service levels to individual market requirements,” the report says.

Other highlights of the report include:

• Impulse purchases were the most frequent selling occasion, driving just over 40 percent of total sales, with holidays coming in second at just over 30 percent. However, when retailers were asked which categories they intend to emphasize, holidays came in first at 69 percent, with impulse at 66 percent.

• Different types of retailers reported differing plans on kinds of flowers to emphasize over the next year. Chain supermarkets said their priorities, in order, would be roses, arrangements and bouquets; independent supermarkets said bouquets, arrangements and “unusual flowers”; and wholesalers said balloons, unusual flowers and bedding.

• Distribution is becoming increasingly centralized. For 2015, about 70 percent of floral product on average was centrally distributed, compared with 48 percent in 2003.

• “Increasing staff training” was the second most frequently named operational priority, at 75 percent, behind “increasing profitability” at 97 percent. Trained staff is seen as especially important to minimize shrink.

To obtain a copy of the report, click here.