For Some, Snow Wipes Out Holiday Sales

For florists in the Midwest and Northeast, the story of Valentine's Day 2007 was one of icy roads, snow-bound delivery vehicles and disappointed expectations.

"Valentine's was on a track to be the best ever -- orders were coming in, product and staff were ready -- then, the storm," says Erlene R. LeBorgne of Rosemont Floral in Portland, Maine, who leveraged an existing relationship with a radio station to get free publicity throughout the day. "We were only down 9 percent from last year. I know this sounds bad, but it could have been a lot worse. I wouldn't be surprised to hear florists were down 20 to 25 percent or more."

The storm took a definite economic toll on the affected regions, according to BusinessWeek.com, which reported "high drama as several airports shut down and others canceled hundreds of flights," in a story that ran Feb. 15. Among the worst hit areas was Oswego County in New York, where Governor Eliot Spitzer activated the state's Army National Guard to assist in removing the 100-plus inches of snowfall.

In Chicago, Red Kennicott, AAF, of Kennicott Brothers called the company's 4-percent sales increase "disappointing."

"Sales were headed much higher until we got a major snowstorm," he says. "Almost all florists (we've talked to) say that last-minute sales were not what they expected."

Kathy Dudley of The Bloomery in Butler, Pa., agrees.

"Overall, we ended up about even with last year, although we were predicting and had planned for a 15- to 20-percent increase in sales," she says. "Deliveries went great, with most people ordering on the 12th, and quite a few on the 13th.  The problem was the walk-in traffic that just wasn't there like in good-weather years."

At Schneider's Florist in Springfield, Ohio, walk-in sales were down nearly 50 percent, with overall business down 33 percent from last year, says owner Bill Ardle, who, nonetheless, pointed to a few silver linings.

"Our staff remained healthy, with no broken bones or vans stuck in the ice or snow," he says. "Things could have been worse. We could have a business east of Lake Ontario in the snow belt."

The snowstorm could have a lingering effect on all industry segments, not just retailers, Kennicott says, explaining that retailers are still trying to "work out" the problem of unsold holiday inventory, "resulting in poor sales at the wholesale level ever since Valentine's Day."

FTD and Teleflora had not released sales results at press time.

Look for more coverage on how weather in other key industry areas -- including a pre-Valentine's Day multi-night freeze in Colombia -- could affect flower supplies for upcoming holidays in future issues of E-Brief.

Read about florists who created positive publicity for themselves, despite the weather, in "Florist Donates Roses To Soldiers' Graves."

--Mary Westbrook
mwestbrook@safnow.org

 
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Florist Donates Roses To Soldiers' Graves

Lake Ridge employee Carey Caplinis lays a rose on a soldier's grave.

Wendy Fike, owner of Lake Ridge Florist at Tackett's Mill, Va., turned excess Valentine's Day inventory into something positive (and newsworthy) last week, donating more than 700 leftover roses to decorate soldiers' graves at Arlington National Cemetery.

Icy, snowy conditions in northern Virginia had slowed Fike's holiday walk-in traffic to a standstill and left her with a cooler full of roses. 

"I wanted to break down and cry," she says, "but (then I thought) 'I am not going to feel bad for myself.'"

Instead, Fike, who was inspired by a conversation with a soldier stationed in Iraq who ordered flowers for his girlfriend, spent last Sunday with her family and employees putting flowers on the graves of more than 350 soldiers.

Fike's goodwill attracted the media's attention, and her story appeared in several local newspapers, including the Washington Times and the Potomac News. The Associated Press later picked up the story, too. 

"What amazes me is the response we have had," she says. "I am floored by this."

Fike wasn't the only florist who made positive headlines around the holiday, despite the fact that many were facing adverse conditions.

• Maris Angolia of Karin's Florist in Vienna, Va., donated leftover roses and arrangements to the local fire and police departments, and two assisted living facilities. She gave a local radio station, BIG 100.3, 50 dozen roses (and 10 dozen to the DJ). The DJ said that the first 50 listeners to sign up on the station's Web site would win one dozen roses each, which they could pick up at Karin's. "We got people in the store that had never been in before," said Angolia.

• Dandelions Flowers & Gifts, in Eugene, Or., was featured on a local CBS affiliate on the Monday and Tuesday before Valentine's. The station had originally intended to interview owner Shirley Lyons, AAF, for a segment on the freeze in California driving up rose prices, but they decided to change their angle when she said the weather wasn't affecting prices.

• Conklyn's Florist, in Alexandria, Va., was featured on a local FOX affiliate's "Let Tony Try It" show on Feb. 8. During the show, anchor Tony Perkins tried his hand at unpacking, cleaning, and even designing floral arrangements at the shop between news segments. The rookie florist "did awful," admits Paul Brockway of Conklyn's, with a laugh. "It definitely sent the message: Go to your local florist, don't try this at home."

• The Sandusky Register in Sandusky, Ohio, featured a Feb. 15 article about Cliff Doebel of Doebel's Flowers in Clyde, Ohio, who, after a bout of bad weather, asked local mayors to declare the week of the 14th "Valentine's Week." Several local mayors, including the mayors of Fremont and Bellevue, Ohio, agreed. The Associated Press also mentioned in a Feb. 15 article that several Ohio towns had instituted "Valentine's Week" for 2007.

For florists who are looking to increase press for their store around Valentine's Day, Lyons has some advice: "Be prepared ahead of time." She suggests having letters or press releases to local news stations ready in advance, so they can be easily sent when the holiday approaches. Lyons' tips on how to interview on camera? "I think the key is to always smile ... Don't get riled. Always turn it back to what is going well."
 

SAF also offers advice on how to handle the media on our Web site.

--Vanessa Machir
vmachir@safnow.org

 
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SAF Meets with the FTC About Deceptive Listings

SAF's CEO Peter Moran and COO Drew Gruenburg met with the Federal Trade Commission (FTC) on Tuesday to discuss deceptive listings and talk about options for dealing with the problem. The meeting with Mary K. Engle, assistant director of the FTC's Division of Advertising Practices, was a follow-up to a letter SAF sent in November, which urged the division to take action against businesses that deceptively list themselves as local florists in telephone and Internet directories.

In the meeting, Engle said that, in order for the FTC to take action against the businesses that mislead consumers about their physical locations, it would need extensive proof of consumer injury.

"The main thing is that [florists] have evidence of consumer injury," she said. "Did the consumer have to pay an extra fee? Was a less expensive arrangement substituted for what the consumer ordered?"

Florists who would like to report a complaint about this issue to the FTC are encouraged to do so. Engle recommends gathering  feedback or comments  from customers and compiling proof of consumer injury. Although collecting complaints from customers is critically important, Engle also stressed the need to document specific injury to your business.

 "The meeting was very open and cordial," said Gruenburg. "It's clear the FTC understands the issue and its implications, but they need concrete evidence that businesses and consumers are being hurt."

Engle also says florists should continue lobbying at the state level to enact legislation against deceptive listings.

"It is important for complaints to get to the state attorney general's office," Engle says.

To date, 21 states have been successful in passing legislation against out-of-town businesses that list themselves as local florists.

FTC also has an alert for consumers that florists can adapt and distribute.

Learn more about deceptive telephone use.

--Vanessa Machir
vmachir@safnow.org

 
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Home Ecology Study in AARP Magazine

AARP The Magazine picks up the Home Ecology Study.

With more than 22 million subscribers, the world's largest circulating magazine is reporting the SAF/FPO's Home Ecology of Flowers study results.

AARP The Magazine's March/April issue states, "Cut flowers can increase compassion and kindness -- and decrease anxiety and worry, a Harvard University study showed."

The Home Ecology of Flowers Study and the public relations campaign publicizing its findings are a result of a collective effort and strategic alliance by SAF and the Flower Promotion Organization (FPO).

Also on the newsstands is Prevention magazine's March issue. On page 40, its 3.2 million subscribers are reading: "It feels wonderful to get flowers. Now, a Harvard University study proves the gift keeps on giving."

Find out more about the Home Ecology study, including ways that you can use the research to promote your shop.

--Vanessa Machir
vmachir@safnow.org

 
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1-800-Flowers.com Dips After Negative Analysis

1-800 Flowers.com stock dropped 8 percent after a Goldman Sachs analyst published a note saying the stock was overvalued, and changed his rating from "neutral" to "sell," according to a SmartMoney.com story that ran on Valentine's Day.

In his opinion, analyst Anthony Noto said snowstorms that plagued the Northeast around Valentine's Day could cause delivery delays and drive up expenses -- a troubling scenario as 1-800 Flowers.com is based in that region. Its company headquarters are located in Carle Place, N.Y.

Noto also wrote that the stock price was inflated relative to the company's financial projection for fiscal 2007 and "might reflect an overly optimistic outlook for V-day, Easter and Mother's Day," as reported by SmartMoney.com

1-800-Flowers.com's vice president for investor relations Joe Pittito, however, chafed at the analysis, telling SmartMoney that the company is "confident going into the second half of the year and [is] quite frankly surprised by the contrarian view coming from Goldman."

Pittito also said that Noto had overestimated the overall effect of the weather.

"Last year we had a huge snowstorm that closed everybody on Saturday and Sunday," he said. "Certainly this is no more relevant this year than any other year."

--Vanessa Machir
vmachir@safnow.org

 
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Oscar's Nod to Flowers

They won't be taking home any gold statuettes, but 18 of the country's top floral designers will do what they do best this week in Hollywood at the 79th annual Academy Awards show, airing Sunday.

Hired to enhance the look of the famous awards show, held at the Kodak Theatre in Los Angeles, the florists will work under the watchful eye of Larry Crain, president of Charisma Floats/Designs, and floral director Richard Salvaggio AIFD, AAF, PFCI of Pasadena, Calif. (Salvaggio is also vice president of industry relations and floral publications for Teleflora.)

Crain has worked on the Oscar awards show for 17 years. He won't discuss the budget he's given -- he'll only say the event itself has grown "about a hundred times." In all, 70,000 stems (roses, callas, gerberas, glads, and carnations) ordered from wholesaler Florabundance in Carpinteria, Calif., will be used to adorn the show, including the red carpet area, the theater, VIP areas, dressing rooms and the press room. Crain got his flower order in to Scott Carlson (president of Florabundance) about two weeks ago. That size order "is lot of weight on his shoulders," says Crain.

Red roses (to match a new carpet that is a true red instead of a raspberry color used previously) will be arranged in containers with potten plants in flower boxes, in front of two-foot tall hedges along the two-and-a-half block, 30-foot wide red carpet, Crain says. Look for flowers in shades of yellow, gold and white in other areas.

At press time, Crain was hoping to find out if show host Ellen DeGeneres has a favorite flower. (If he knows a participant's likes -- such as Barbra Streisand's passion for pink peonies -- he'll get it.)

Away from the red-carpet hubbub, Crain and a staff of 65 are on location for six days working out of an area a few blocks away, where a refrigerated truck, temporary office trailer and a big tent are set up. Golf carts scoot them where they need to go. The designers (all are members of the American Institute of Floral Designers, Crain says) each set up in their designated areas to design, which they'll do starting on Thursday, when rehearsals begin. "We're a team, we're like a family," says Crain. "It's a lot of work, but it's a lot of fun."

--Mary Ann Barton
maryannbarton@msn.com

 
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Auto Sellers Court Women

When it comes to selling, the language you use is important -- and it's not gender neutral. At least, that's the theory of a few entrepreneurs who started a Web site, www.askpatty.com, to "help improve the communication between female customers and auto sellers," according to a recent story in the Chicago Tribune.

The site gives women information about automotive issues -- from purchasing to maintenance -- and "certifies" dealerships that have passed a course on how to communicate with women as "female-friendly."

"We're teaching (dealerships) how to attract, sell and increase loyalty with women," said Jody DeVere, president of AskPatty.com

The site gets about 20,000 visitors each month, and about 50 dealerships have signed on for certification services, which cost $225 per person for 12 months of training and $795 a month for the dealership certification. Why spend the money? Because women influence up to 80 percent of all household purchases, according to estimates cited in the Tribune story.

Florists have a different gender gap: Women account for 78 percent of all floral purchases, according to the Ipsos/AFE Consumer Tracking Study, 2004. Find out more about what both men and women are looking for in floral purchases with information from SAF's Consumer Attitudes & Behaviors About Floral Purchasing study.

--Mary Westbrook
mwestbrook@safnow.org

 
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Lifestyle Centers Gain Momentum

Thinking about moving locations? Maybe you should go topless.

Large, enclosed malls are becoming relics of the past as developers move toward outdoor lifestyle or town centers. In fact, the new, "topless" malls are so popular that several leading developers recently told USA Today they'll never build another enclosed mall, and the International Council of Shopping Centers now estimates more than 50 lifestyle centers are being planned to join the 150 already in existence.

"It's so simple, it's genius," says Mark Zygmontowicz, a managing director at MapInfo, which does location analysis and research for retailers. "I have a grand appreciation for these lifestyle centers."

The new malls satisfy myriad consumer demands, experts say, including convenience (they often house gourmet grocery stores and boutiques), efficiency (all stores can be entered directly from the parking lot) and broad appeal (movie theaters, bars and restaurants attract men and women, singles out on the town and families).

"We started realizing that a good restaurant or a bar could be a legitimate tenant to put next to a retail tenant," says Yaromir Steiner, a businessman who developed Easton Town Center in Columbus, Ohio, and who is considered one of the fathers of the lifestyle center. "(In traditional malls), restaurants were always relegated to the parking lot so they didn't impede the parking of the shoppers."

The centers are anchored by hip stores such as REI, an outdoor outfitter, and Crate & Barrel, compared to the more staid department store anchors (J.C. Penny, Sears) at traditional malls. Proponents also say that, while traditional malls can hurt communities by drawing people away from downtown areas, open, lifestyle centers often become gathering spots.

That's not to say traditional malls are entirely obsolete, but it does signal a need for them to renovate to stay relevant, experts told USA Today.

"The message the industry is trying to get out is that we are going to continue to be strong regional players," says Patrice Duker of the shopping center council. "Most likely, we're going to see them evolve again."

--Mary Westbrook
mwestbrook@safnow.org

 
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Spring Forward in March

Daylight saving time is coming early this year. About a month early, to be exact. And, while few people are predicting the change to cause dramatic problems, it could lead to a few headaches for the unprepared.

In August 2005, Congress, trying to increase the country's energy efficiency, voted to lengthen daylight saving time, beginning in 2007, from the second Sunday in March to the first Sunday in November. That means, this year, you'll spring forward on March 11.

The change, according to the Washington Post has "sent thousands of technicians scrambling to make sure countless automated systems switch their clocks at the right moment."

That's not to say people should pull out the canned food and bottled water they stored up for the Y2K scare. Many devices, including cell phones, which pull date/time information from service providers' networks, will update automatically and seamlessly. At the same time, companies such as Microsoft are cautioning users of older products (including Windows XP SP1 and Windows NT40) that manual updates could be necessary. (The company has posted directions at www.microsoft.com.) The company also is advising users to carefully review calendar items during March and early April to avoid missed commitments.

The change will have one more -- sweeter -- effect in the fall: Children have an extra hour of daylight to trick-or-treat on Halloween.

--Mary Westbrook
mwestbrook@safnow.org

 
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Valentine's Day Sales Were........

Two SAF online Valentine's Day Surveys were sent out this week asking how the industry fared this major floral holiday. It is important that those who received surveys send back responses. The information we collect will be used to help florists prepare for future Valentine's Days.

One was sent to retailers and, for the first time, a second survey went to wholesalers and suppliers. The online questionnaires, initiated by the SAF Business & Economic Trends Committee, ask about holiday sales, successful strategies and marketing techniques and products sold for Valentine's Day.

Preliminary results should be available in about ten days. If you did not receive an e-mailed survey and would like to be included in future surveys, email surveys@safnow.org.

SAF is also polling a national sample of adult consumers to see if they purchased flowers or plants for gifts this Valentine's Day, what products they bought and where they were purchased from.

--Ira Silvergleit
isilvergleit@safnow.org

 
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Product Spotlight: Wedding Postcards

Springtime will soon be upon us (so says Punxsutawney Phil) and that means wedding season is right around the corner. Start promoting yourself as a premier wedding florist with SAF's wedding postcards, which read "Nothing sets the mood for a picture perfect wedding day like flowers. Leave the arrangements to us, and we'll help you step down the aisle in style." Purchase your postcards prepackaged from SAF's Market (click on Postcards and scroll down). Or have them customized with your shop's information and sent out for you at our Custom Print Marketing Center.

--Vanessa Machir
vmachir@safnow.org

 
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Valentine's Weather Affects Some

Forty-two percent of readers responding to last week's e-poll said that inclement weather hampered their Valentine's Day deliveries. Twenty-seven percent said they had no weather problems, about 19 percent said weather did not hamper their deliveries because they had a contingency plan, and about 12 percent said that weather did not hamper their deliveries, because their normal system could handle it.

--Vanessa Machir
vmachir@safnow.org

 
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Talk on the Forums

One member is new to the industry, and is wondering how to handle past due accounts. Weigh in.

Postcards
Generating Advance Orders

Start your own discussion.

--Vanessa Machir
vmachir@safnow.org

 
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Online Sales for Valentine's Day

Of all categories tracked by comScore Networks, the flowers and greeting
cards category experienced the most dramatic gains in the run-up to
Valentine's Day. Compared to the four week average preceding February 4,
online sales rose 98 percent from $12.4 million to $24.7 million the
week ending February 11. The jewelry and watches category saw a 22
percent increase.

Senior analyst Andrew Lipsman at comScore characterized online florists
fulfilling last minute orders through local florists as "godsends for
many last minute shoppers."

Source: comScore Networks, February 14, 2007

--Ira Silvergleit
isilvergleit@safnow.org

 
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