Industry Members Map Out Potential V-Day Supply Slowdowns - safnow.org

As the floral industry preps for a Sunday Valentine’s Day on a three-day weekend in 2021, a panel of experienced professionals from all segments weighed in on some of the best practices that florists should have in place for a successful holiday. Among the key messages: Prepare back-up plans (and back-ups for back-up plans), manage for high volume, stay focused on your goals and prioritize clear communication.

“Valentine’s Day this year is a three-day opportunity for retail florists,” with strong sales Friday, Saturday and Sunday, said Anton Engelmann, the owner of Town and Country Gardens in Geneva, Illinois, during the Society of American Florists’ “Gear Up for Valentine’s Day,” a Dec. 4 virtual event sponsored by FTD. “In the Midwest, we’re pretty locked down, so restaurants will likely be closed or at minimum capacity,” making flowers an even more appealing choice for many consumers who want to celebrate the holiday.

About 48 percent of retailers responding to an SAF pre-holiday survey said they expect Valentine’s Day sales to be down in 2021, compared to returns from 2020’s Friday holiday. Meanwhile, about the same number say they think sales could be higher than results from 2016, when Valentine’s Day last occurred on a Sunday.

Supply Chain Challenges: Freight Costs and Lift

One focus of the event’s panel discussion was the industry supply chain, and what retailers need to know now to make smart decisions for the holiday. The pandemic has created new challenges. Ahead of Mother’s Day, for example, industry suppliers had no idea what consumer demand for the holiday would look like — or if retailers would even be able to operate in some parts of the country. That uncertainty, along with consolidations and business closures, led to slowdowns, backlogs and confusion.

With Valentine’s Day, the situation is different, but not without its own potential pain points, said Oscar Fernandez, director of marketing for Equiflor-Rio Roses. “We’ve had enough of a sample size to understand that there are a lot of people buying flowers,” explained Fernandez, a member of SAF’s board of directors. “We believe it’s going to be a very good Valentine’s Day.”

The primary challenges on the fresh product supply side: freight costs and lift, or the volume of flowers moving through the chain. “Production-wise, I’m not concerned. Fresh product will be available, but freight costs right now are the big unknown,” Fernandez said. (His advice to retailers: Plan and price for the worst-case scenario.)

Fewer planes coming out of South America also means space will be more limited — so the earlier florists can make commitments with suppliers, the better. “Communication between every part of the supply chain is key,” Fernandez said. “We need to be patient and work together.”

The vaccine rollout and distribution also could complicate industry logistics, further eroding space on those already limited flights, Fernandez said, adding that it’s an issue that industry leaders are watching closely.

The complexity of logistics makes communication paramount, said Lenny Walker, vice president of sales and operations at Kennicott Brothers in Chicago, who shared that “setting expectations and communicating changes” between customers and suppliers is critical to a successful holiday.

“Plans need to be adjustable,” said Walker, a member of SAF’s Wholesalers Council. “I’ve never been through a perfect Valentine’s Day. This year, as an industry, I think we’re up to the challenges.”

Look for more advice next week from the retail perspective on the panel, including practical insight on managing your team safely during the busy season, guidance on how to market to spread out order volume and thoughts on how to maximize sales efficiently with a limited team, or watch the recorded session today. A session handout of key takeaways is also available.

Plus, read more about Valentine’s Day prep in the Nov/Dec issue of Floral Management, which includes supply chain insight and best practice tips on operations and management. And check out results from SAF’s Valentine’s Day Expectations Survey to help benchmark your plans within the context of insight from your floral industry peers.

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

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