It’s hard to pick up a newspaper or turn on the television without hearing about Canada’s current economic situation. The words downturn, worsening, slipping and the big R – recession – are all terms we’ve become accustomed to hearing on a daily basis. With news coming to light in December that the U.S. has already been in a technical recession for a full year and the Bank of Canada admitting that Canada is also in recession, it’s time to take a look at how this will affect the retail industry.
Right now, shoppers are facing uncertain times. At the end of November, the Conference Board of Canada announced that consumer confidence has dipped to levels not seen since the recessionary years of 1982 and 1990. People are now beginning to think twice before they pull out that credit or debit card and are no longer swiping with abandon.
Stephanie Laprairie, owner of Stems Floral Gallery, this month’s Top Shop profile on page 10, says her two Alberta shops have already been affected by the current economic situation. People are still shopping but want to spend less for a design, without sacrificing the wow factor. Laprairie says they’ve had to work hard to educate their customer on the value of their blooms and work with the customer to adapt to the smaller budgets.
This will be the reality over the coming year. The fact that people are hesitating before they open up their wallets is bad news for retailers offering big ticket items like TVs and cars but it won’t be as bleak for those businesses like yours that offer life’s affordable luxuries.
The economy is forcing people to spend more time at home and this is where you come in. In a November Ipsos-Reid survey, 74 per cent of Canadians indicated they plan to cut back on dining out and 72 per cent said they were restricting their spending on entertainment. As Canadians prepare to hole up for the winter with homemade dinners and movie rentals, flowers are an easy way to add new life to a room, are the perfect addition to a dining room table and can freshen up aging home décor. They also help create positive emotions during what will likely be a stressful time for many families. On page 20, our own Michelle Brisebois looks at how florists can appeal to customers during the tightening economic conditions.
This Valentine’s Day also presents an opportunity for florists to strut their stuff. Position your flowers as the obvious gift option over expensive jewelry or a pricey dinner out. Package your arrangements using different price options to show customers how they can spend $50 and receive a gorgeous arrangement for their significant other. Look at how you can accessorize the designs to up their perceived value. The heavily discounted Christmas retail season has left consumers with a taste for bargains so give it to them in the week leading up to Saturday, Feb. 14. Create a special promotion or incentive to move product and get everyone in the loving spirit.
Tough times call for creative measures and the floral industry is in a position to offer consumers the perfect floral perk-up. Keep your customers spending now and you’ll reap the rewards when the economy is on the upswing.
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