After an “okay” first two quarters for the majority of floral businesses that responded to a survey by the Society of American Florists, uncertainty or pessimism are the dominant sentiments about sales for the remainer of the year.  

That tempered sales expectation is fueled by the upcoming presidential election, inflation, higher wages and insurance premiums, and a marked slowdown from the pandemic sales boost.  

That’s not to say the industry is worse off than it was five years ago. In fact, this year’s sales are up from 2019 for 66% of respondents, the survey found. Units and profitability were also up, 52% and 46% respectively. 

That upward trend is in line with the Bureau of Economic Analysis’s data on purchases of potted plants, flowers and seeds, which shows a slow but steady sales increase over the past few years, says SAF’s Chief Economist Charlie Hall, Ph.D. 

“We may have moved the needle a little bit in terms of convincing people that flowers are a necessity in their lives versus a luxury, but we haven’t moved it a lot,” Hall says. 

Sales Down 

The survey, conducted July 1 to July 17 among SAF members of all segments, found that sales for the first two quarters were down for nearly 45% of respondents, up for nearly 29%, and about the same for about 25%. 

Close to 60% of those reporting a decrease saw sales go down between 1% and 10%.  

Of those with an increase, 74% reported an uptick in sales between 1% and 10%.  

Average Order Value Increases 

Average order values were higher this year than last for 60% of retail respondents, the survey found, while nearly 22% reported that order values were about the same.  

Many respondents remarked that their average order value is up because of adjustments to pricing to account for rising costs of goods. Some shops are seeing pushback from consumers who are unwilling to pay more or not buying flowers in the face of budget constraints, while others said prices have had no effect on sales. 

“People are spending more money for an average arrangement,” said Rebecca Carter of Branch and Bloom Floral Boutique in Wolfeboro Falls, New Hampshire. “Our main objective is creating an outstanding experience for people — with flowers, the store, the customer service, and the branding. If the experience is memorable, the price becomes less of a burden.” 

Units Sold Decreases 

The number of units sold decreased for 54% of respondents, with 20% reporting a decrease and 19% reporting an increase.  

Respondents attributed the decrease to fewer every day and funeral orders — and several said higher prices were to blame.  

“The number of orders seem to be trending downward to pre-pandemic levels,” said Cathy Herrold at Graci’s Flowers and Gifts in Selinsgrove, Pennsylvania.  

Tyler Meskers, vice president of Oregon Flowers, found success in “extra sales hustle,” which he says has made up the difference “for the uncertain economy.” Retailers with more volume this year reported success with ecommerce and promotions for their most popular designs.  

Tempered Sales Expectations  

Asked about their expectations about how their 2024 year-end sales would compare to 2023, nearly 47% indicated they expect sales to be down. About 26% forecast an increase in sales, and nearly 21% expect sales to be about the same.  

The upcoming presidential election was one of the many worries noted by respondents.  

Hall, SAF’s chief economist, says typically the effects of new policy from a new president aren’t felt immediately. It is usually the second year of a new presidential term that has the biggest impact on economics, he says. 

Some floral professionals are already concerned about profit, and the election adds another element of uncertainty. 

“We are making up from a slow spring, however concerned in regard to the impact of the election,” said Jody Brown-Spivey of Expressions Floral Design Studio in Gahanna, Ohio. She is keeping a closer eye on fresh product inventory to control expenses and focusing on marketing the benefits of flowers to businesses in her community, such a nursing home.  

“We utilized SAF information on how flowers effect senior citizens and explain that we are local brick and mortar and can better serve them,” she said, including offering subscriptions, standing orders and free delivery for their first order. 

Plans of Action  

Brown-Spivey’s action is just one example of how floral businesses are adjusting their plans to ensure a strong end to the year.  

At Ambiance Florals & Events in Albany, New York, Michelle Peters is adapting by seeking out more and larger weddings, focusing on e-commerce, having cash and carry flowers at the ready, and putting a greater emphasis on customer service.  

“We try to give everyone an experience,” Peters said. “We are engaging in more conversation, showing sincere compassion and caring for people dealing with funerals, making wedding consultations fun and exciting, listening to what is important to that person.”  

She also rewards new customers for coming in. “We give every new person a wrapped rose in a water tube just for walking thru the door,” Peters said. “They may not purchase something that day, but most people come back when they do need flowers.” 

Others are pinning their hopes on fall weddings and commercial installs for the winter holidays. 

“Our 4th quarter is huge for commercial Christmas decor,” said Darlene Walker of CDC Floral in Orlando, Florida. 

Hall says it’s important for floral businesses to stay calm and maintain a long-term perspective. 

“Manage your efficiencies and working capital, and hold the line on pricing,” he says. 

Hall will deliver a keynote, “Gear Up for Growth: Economic Insights to Guide Your Business,” at SAF Miami 2024, SAF’s annual convention Aug. 6-9. Programming for the three-day event was deliberately built around the need for businesses — many of which have been reporting soft sales since 2023 — to focus on growth.  

Amanda Jedlinsky is the senior director of content and communications for the Society of American Florists.