The global pandemic has created many new challenges for floral industry businesses — and disruptions will be long lasting. But a new Society of American Florists Mid-Year Economic Outlook Survey that queried association members across segments found floral industry businesses that have been able to push through the crisis so far see reasons for optimism: Roughly 65 percent of respondents classified business as “good” or “excellent” and 73 percent of respondents are either “very confident” or “extremely confident” that they’ll make it through the pandemic.

The survey, sent via email to 5,026 active SAF members, had a response rate of 5.5 percent. About 78 percent of the respondents to the survey represented businesses in the retail segment.

Retailers are the most optimistic segment, with 66 percent saying business is good or excellent, followed by wholesalers/suppliers (59 percent) and growers (54 percent). (Wholesalers/suppliers/importers represented 9 percent of respondents; growers represented 5 percent; about 7 percent of respondents classified themselves as “other.”)

Many of the survey questions centered on sales results and operations from the first and second quarters of 2020, as they compared to the first and second quarters of 2019; however, the survey also asked respondents about specific pandemic-related questions and future forecasting. In write-in responses, the weight of the new challenges — including supply chain concerns, uncertainty about how to plan for upcoming holidays seasons such as Christmas and Valentine’s Day, and the devastation mandatory closures and crowd size limitations has wrought on weddings, events, corporate and sympathy sales — became clear.

A retailer in the Northeast said that while sales have been strong, worries still abound: “I’m optimistic generally, anxious about the election effect, the possibility of another surge, as well as my ability to implement social distancing during the busy holiday period.”

In the Southwest, another retailer also classified the business as “cautiously optimistic. Our increase in sales is due to people not being able to be together, so we are aware that things may change once everyone is comfortable being together. If that happens, we will need to be on our toes to make sure we adjust buying and staffing very rapidly.”

Another retailer in the Northeast emphasized that, while hard hit early in the pandemic, recent weeks have proved promising. “We were closed March 28 to May 17. Since then, sales are up 29 percent! Website sales were up 49 percent in June and 126 percent in July.”

“ Just unsure about holiday walk-in sales,” wrote a florist in the Midwest. “I feel fresh product will stay up in sales, not sure about gifts and decor with the unrest of what is next.”

SAF’s CEO Kate Penn said the survey results are an important new set of data points for the floral industry at large to consider as business owners begin making plans for late 2020 and 2021.

“This survey helps SAF build on what we already know: The pandemic dramatically changed business for every industry member, but it hasn’t affected everyone in the same way,” said SAF CEO Kate F. Penn. “Drilling into the responses enables SAF to share the best information we can with others, connect the industry, and create new programs that are tailored to the needs of our members right now and as they look ahead to the future.”

Key highlights from the SAF survey include:

• Balance sheets are adjusting. About 55 percent of all respondents said gross sales for the first and second quarters of 2020 were down compared to the same period last year. Meanwhile, 39 percent of respondents said their net profits for this period were down.
• Workforces have evolved — and continue to shift. March-August represented a tumultuous time for workers and managers/owners fighting to keep their teams. About 68 percent of all respondents said they have not permanently laid off any staff during the pandemic, but about 62 percent said they have temporarily laid off or furloughed employees during the crisis. Overall, about 46 percent of respondents said they applied for a PPP loan, which likely helped reduce staff cuts; in write-in responses, most of those who applied said they received funding from PPP. Looking ahead to the next six months, about 42 percent of all respondents said they have no plans to add to their teams (excluding seasonal or holiday help).
• Retailers have seen online and add-on sales spike. The survey emphasized how profoundly social distancing and physical storeroom closures have pushed consumers online. About 69 percent of respondents said their online sales have increased so far this year, with about 55 percent of those respondents saying online sales have increased up to 20 percent in the first and second quarters of 2020 as compared to 2019. Retailers also saw opportunities among homebound customers hungry to reconnect with loved ones: About 42 percent of retail florist respondents say their add-on sales for the first and second quarters were up this year, as compared to the same time period in 2019.
• Hard-hit business areas are being reimagined. Corporate work, sympathy sales and, perhaps biggest of all, weddings and events, are areas that retailers are having to rethink now, sometimes dramatically. About 46 percent of retailer respondents said they are adapting to new realities by working more closely with existing partners, such as funeral home directors and wedding planners. Roughly 37 percent said they are marketing new products such as micro wedding packages available to clients. Thirty-seven percent said they are providing virtual consultations and 25 percent have added “COVID-19 clauses” to contracts to better communicate with clients and better protect their businesses. Meanwhile, 24 percent are exploring new partnerships and 15 percent are adjusting payment structures and fees for pandemic related expenses. In addition, about 12 percent of those retailer respondents say they are offering new services, such as virtual workshops.

Look for more information from the survey in next week’s issue of SAF Now and in the October issue of Floral Management magazine.

Mary Westbrook is the editor in chief of Floral Management.