With 70 per cent of floral retailers participating in the Produce Marketing Association’s (PMA) recent U.S. Valentine’s Day 2008 Floral Market Watch survey reporting they saw increased sales over last year, it’s safe to say that this year’s Valentine’s Day floral sales were “coming up roses.” Survey respondents reported that several factors helped boost this year’s sales, including significantly better weather nationwide than last year’s snowy season.
“Looking back on last year’s low sales, we are fortunate to report that more than 25 per cent of retail respondents experienced sales increases of 10 per cent or more,” explains PMA Floral Council Vice-Chairman Cindy Hanauer, director of floral operations for Winn-Dixie, Jacksonville, Fla. “Though suppliers ranked product availability, timing and shortages as their greatest challenges, retailers did not suffer – they reported increased sales, and ranked product shortages as least challenging,”
Report highlights economic concerns, 2008 notables
On the downside, floral retailers also reported that consumers’ concerns about the economy may have caused some softening in sales and product substitutions. While demand for Valentine’s Day flowers is typically inelastic and defined by customers’ past purchase behavior – the iconic dozen red roses – most respondents reported more than 10 per cent increases in mixed bouquets, bunches and arrangements.
Of additional note, 35 per cent of retailer respondents reported they offered delivery service this year, with 50 per cent of those retailers seeing an increase in orders; they also reported they relied more on internet advertising this year to drive sales. Supplier respondents reported that the percentage of flowers they sold to internet companies increased, to an average of 10-20 per cent.
The second and latest Floral Market Watch survey reports that same-store sales increased during Valentine’s Day 2008 compared to 2007.
Data for this report was collected in March, and analyzed by floral marketing expert Sandy Hering of Floral Marketing Innovations, Mattapoisett, Mass., who also provides report commentary.
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