Business in 2022 was ‘Good,’ But Uncertainty Abounds for 2023 - safnow.org

A survey of retailers, growers, and wholesalers, importers and suppliers, conducted last month by SAF found that 2022 business was good for a majority of businesses.

Business in 2022 was good for the majority of floral businesses across all segments of the industry — but even on the heels of a good year and a reportedly strong Valentine’s Day, some owners are feeling uncertain about 2023 sales.

That’s according to the Society of American Florists’ biannual economic outlook survey of retailers, growers, and wholesalers, importers and suppliers, conducted last month.

The survey found that on average, about 61 percent of businesses reported business was good.   Sales and net profits in 2022 were up compared to 2021, the majority of survey respondents in all segments reported.

The survey also asked retailers about Valentine’s Day and found that sales increased compared to last year for 56 percent of respondents. SAF’s survey came on the heels of a poll conducted by IPSOS on behalf of SAF, which found that the percentage of Americans buying flowers hit at least a 10-year high.

2022 Sales

Among the segments surveyed, growers reported the strongest sales in 2022, with 75 percent reporting an increase in sales compared to 2021. A quarter of growers reported that 2022 sales were about the same as in 2021. For those with an increase in sales, 40 percent saw a 1 to 10 percent increase in sales.

About 57 percent of wholesalers, importers and suppliers reported an increase in sales compared to 2021, with 21 percent reporting that sales were the same, and 21 percent reporting sales were down. Of those with an increase in sales, nearly 55 percent saw a 1 to 10 percent increase in sales.

About 49 percent of retailers reported an increase in sales, with 27 percent reporting that sales were the same, and nearly 22 percent reporting sales were down. Of those reporting an increase, almost 45 percent saw a 1 to 10 percent increase in sales.

Retailers expressed ongoing concern about rising costs, with many making comments questioning  how they’d manage to adjust staffing if business picked up or slowed down.

“ is hard to manage the severe ups and down,” says Kreg Krueger of Vogt’s Flowers in Flint, Michigan. “ big swings in day-to-day business.”

Others noted that they are seeing the effects of inflation in consumer spending behavior.

“We are located in a small metropolitan area surrounded primarily blue collar, agriculture-based demographic, which is highly sensitive to both inflation and recession,” says Dawn Sabrin of Bovan Floral Group in Burton, Michigan. “We are seeing a sharp contraction in add-on and impulse purchasing.”

Valentine’s Day Sales Up

The survey also asked retailers about their Valentine’s Day sales, and found that sales, average order values (AOV) and number of units sold was up or remained the same compared to last year for the majority of respondents.

About 56 percent saw an increase in sales compared to last year, while sales for 24 percent remained about the same, and 16 percent saw a decrease in sales.

Of those that had an increase in sales, 28 percent reported an increase between 1 and 5 percent, 17 percent reported an increase between 6 and 10 percent, and 12 percent reported an increase between 11 and 15 percent.

Of those that had a decrease in sales, 10 percent reported a decrease between 1 and 5 percent, and nearly 6 percent reported a decrease between 6 and 10 percent.

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Source: SAF Economic Outlook Survey of all SAF member businesses. Conducted February 2023. Based on 184 responses.

The AOV was up for about 70 percent of respondents, while 21 percent reported their average order value stayed the same, and just 6 percent reported a decrease.

The number of units sold increased for 44 percent of respondents and decreased for about 30 percent of respondents. About 21 percent reported that their number of units sold stayed about the same compared to last year.

The Super Bowl, which fell two days before Valentine’s Day, was blamed for many last-minute orders, according to respondents’ comments.

“People didn’t think about it until Monday,” says Erin Davidson of McNamara Florist in Indianapolis. “Sunday traffic was very slow.”

Other findings about Valentine’s Day sales from the survey include:

  • 58 percent of respondents reported an increase in website and walk in sales; and 39 percent reported an increase in phone sales. Increases in the other categories were reported by less than 20 percent (wire outs, wire ins, giftware, holiday décor services).
  • A quarter of respondents reported a decrease in walk-in, phone sales and wire-in orders (wire-out orders were down for about 19 percent of respondents)
  • 45 percent of florists reported that 26 to 50 percent of their orders were for roses. 35 percent reported that 51 to 75 percent of their orders were for roses.

Mixed Outlook for 2023

Some of the businesses that reported increased sales and net profits in 2022 are approaching this year with caution. On average, 46 percent of respondents indicated that they were uncertain about sales in 2023, and more than 6 percent reported feeling pessimistic — that’s compared to 31 percent and 4 percent, respectively in SAF’s survey one year ago.

Inflation, economic uncertainty, geo-political events and more are challenging floral businesses and affecting consumer spending, floral professionals wrote in comments.

“Cost and inflation are limiting growth,” says Tyler Meskers, vice president of Oregon Flowers in Aurora, Oregon. “We would be happy if sales are the same as 2022.”

An average of 47 percent of respondents remain very optimistic or optimistic about sales in 2023, compared to an average of 63 percent in last year’s survey.

“Flowers have been relevant and essential for the last two and a half years, and we in the industry should … keep offering flowers and be confident they will sell,” says Gabriel Becerra, president of Golden Flowers in Miami.

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Source: SAF Economic Outlook Survey of all SAF member businesses. Conducted February 2023. Based on 184 responses.

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Source: SAF Economic Outlook Survey of all SAF member businesses. Conducted February 2023. Based on 184 responses.

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Source: SAF Economic Outlook Survey of all SAF member businesses. Conducted February 2023. Based on 184 responses.

Amanda Jedlinsky is the managing editor of SAF NOW.

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