A late Thanksgiving means that floral industry retailers will have to hustle to make the most of a shorter Christmas season. Thanksgiving falls on Nov. 28 this year — a week later than the 2018 holiday — which translates to six fewer days between Thanksgiving, the traditional start of the shopping season, and Christmas. The compressed calendar has created ripple effects across industry segments.

Tim Dewey, group vice president of procurement, e-commerce, marketing and quality at DVFlora in Sewell, New Jersey, said the tight timing of Thanksgiving is a particular challenge this year. “The biggest issue we see is the potential effect on Christmas sales, due to the fact we have a very late Thanksgiving and only four and not five weekends in the holiday run-up,” said Dewey, a member of the Society of American Florists’ Wholesalers Council.

Alvaro Crespo, director of Lihmil Inc. in Kernersville, North Carolina, echoed Dewey’s sentiments, saying that flower supply levels are good — with few unexpected issues related to weather, world events or logistics at this point — but the fast track timing could be limiting. “It will be a short holiday,” said. Crespo, a Wholesalers Council member. “Retailers will be very busy the two weeks prior Christmas.”

Retailers Council Member Rakini Chinery, AAF, AzMF, owner of Allan’s Flowers in Prescott, Arizona, is planning for that rush. This year, she put up in-store Christmas displays earlier than usual and updated her website to reflect holiday designs (with a delivery date set to Dec. 1 or later). “I suspect that most consumers aren’t thinking like retailers, and they don’t realize yet that because Thanksgiving is late, they won’t have as many days to shop,” she explained. “I wanted to be ready early online and in-person. I think we may still see a rush of orders on Dec. 22, which we will be able to handle.”

And the floral industry isn’t alone. Businesses large and small across industries are prepping for harried, time-crunched customers with customer service solutions that make it easier for people to buy goods quickly, often without leaving their homes, workplaces or vehicles. Target, for instance, recently unveiled a special “Drive Up” service in all 50 states. The program lets customers order via the store’s app and then wait in their cars for items to be delivered. Target, Best Buy and Walmart are also among the big-name stores offering free, expedited shipping services on holiday orders — services that more and more Americans are coming to expect from retailers.

“A shorter holiday season puts more importance on each shopping day,” Steve Sadove, senior adviser for Mastercard and a former CEO and chairman of department store operator Saks Inc., told Reuters.

Tactics floral professionals are using to build in increased efficiencies and drive sales during the abbreviated period include:

Streamlined production. Retailers are looking for ways to be more productive and faster in the design room and for specific efforts that improve profitability. One approach adopted by Norton’s Flowers & Gifts in Ypsilanti and Ann Arbor Michigan: putting surplus containers to good use. “One thing we’re making a real effort on this Christmas is repurposing unused design containers from previous holidays,” said Tim Galea, a member of SAF’s board of directors. “I would guess very few florists sell out completely, so we inevitably have this graveyard of unused wire service novelties or other containers gathering dust in storage. On any orders that don’t require a specific container, we’re going to use as many of the older ones as we can.”

Another tactic that retailers are employing to increase efficiency and direct distracted customers’ attention: reduced number of product offerings on their holiday web pages, an approach Sam Bowles, general manager of Allen’s Flowers in San Diego, has endorsed this year at SAF events and via the association’s webinars. The payoff: With fewer options to choose from, customers will zero in on the products and designs you most want to sell (read: those you have already in stock).

In an effort to maximize efficiencies in sourcing and staffing (among other costs), Chinery also consolidated order fulfillment for her two location into one design room. “It’s something we always do around the holidays, but we did it earlier this year, so that staff can get used to the space and develop good habits” ahead of the stressful Christmas rush. “It’s been a really good thing,” she added. “We’re staffing differently and ordering differently, more efficiently. It’s really streamlined our processes.”

Increased focus on labor. The holiday season has only heightened the ongoing challenge of an extremely tight labor market. It’s a crunch felt by floral professionals in every segment and in every region of the country. “The labor market is empty,” said Wholesalers Council Member Rodger Callister, general manager of Ensign Wholesale Floral in Salt Lake City, Utah. “Everyone who wants a job has a job. Trying to find anyone to apply to our job offers has been difficult. I have had two job offers advertised in all of our usual places since the end of October — email blast, Facebook, Instagram, local job advertising, etc. — and have only had four applications, only one with any floral experience.”

The reality of the labor market has compelled some industry businesses to place renewed focus on employee appreciation and recognition programs, to ensure they are doing their best to retain valuable talent. “We are continuing to work on ensuring our employees are happy and engaged with the company,” said Wholesalers Council Member Anne Stewart, vice president of North American floral operations at Smithers-Oasis Company in Kent, Ohio. “We just introduced a new Employee of the Month award, which really went over very well.  It is a small thing: The employee gets the use of a close parking place, as well as an extra day of paid time off. This, plus our previously announced new incentive plan, has been a great motivator for the team and a contributor, we believe, to good results.”

Despite the shortened season, a national group said that it remains optimistic about final sales returns. Earlier this fall, the National Retail Federation predicted that sales during November and December will increase by 3.8 percent to 4.2 percent over 2018, to a total of between $727.9 billion and $730.7 billion. The numbers exclude automobile dealers, gasoline stations and restaurants, and track closely with an average holiday sales increase of 3.7 percent over the past five years. (One possible issue that could temper those returns: unresolved trade issues and consumer reactions to them.)

Last year, 60 percent of SAF retailers responding to a post-holiday survey said they experienced a holiday sales increase over 2017 returns. The average transaction for the 2019 holiday was $71, slightly higher than 2017’s $68.

Retailers last faced this kind of abbreviated shopping season in 2013, when Thanksgiving again fell on Nov. 28. That year, 44 percent of retailer respondents to SAF’s survey said they experienced a sales increase. About 34 percent said sales dropped, and 21 percent said sales were about the same. (The remaining 1 percent weren’t sure of their final returns.)

 

Mary Westbrook is the editor in chief of Floral Management magazine.