The Produce Marketing Association and the Food Marketing Institute released new research in November benchmarking the mass-market floral retail business in a report titled “Trends in Mass-Market Floral.” In this exclusive interview with The Produce News, Becky Roberts, PMA’s director of floral, and Rick Stein, FMI’s vice president of fresh foods, discuss what the findings mean for the mass-market floral supply chain.

The Produce News: Why did the two associations think this research was needed?

Roberts: PMA’s Floral Council had identified the need for this type of basic, foundational business information as a priority, to help the mass-market floral industry to better compete. PMA represents the floral supply chain from field to store; this report contains information that applies to every link in that chain and it provides a snapshot of today’s mass-market floral retail business — really a photo album because it covers so many topics. It identifies trends in store operations, floral product offerings and services, sourcing practices, and buyer priorities.

Stein: Our retailer members know that for their shoppers, “fresh” is the whole package — from the tastes of the meals they want to create to bring their family and friends together, to the environment of beauty and welcome that they want to create in their homes. This research helps retailers set the tone for that overall consumer-shopping trip, so that they can grow their fresh businesses and sustain the entire supply chain. It also identifies opportunities to grow the mass-market floral retail business over the next three to five years. Other store departments, including fresh produce, have had this type of business information for years. Our floral departments need these business-building tools, too.

TPN: Why is this research important?

Roberts: Retailers know that their floral departments not only contribute significantly to the bottom line, but also help stores to connect emotionally with their customers. What the supply chain has needed is solid information on what the industry looks like right now — a benchmark to compare their businesses to. We commissioned a recognized leader in floral market research, Prince & Prince, to conduct the study for us. The last time benchmarking research like this was conducted was 2003, and a great deal has changed in the mass-market floral retail world since then. There has been retailer consolidation, shifts in geographical production bases, and shifts in service delivery — we see a lot more partial and full-service now.

Stein: Plus they need a future picture of where the opportunities and needs are to grow their business. Once they have a clear picture of where their business is today, then they can move forward. By being able to look back with knowledge, they can look forward with clarity at what to do next. We worked hard to make sure that the research findings present an accurate picture of today’s business. For example, respondents to our survey represent nearly 15,000 stores and nearly $3 billion in floral product sales, and include chain, independent and club mass-marketers, plus wholesalers. The findings truly are relevant to the entire supply chain.

TPN: Can you give our readers a preview of your findings?

Roberts: As The Produce News has reported, floral buyers often say they want to expand their everyday floral sales to consumers. That said, our survey found that the industry tends to rely on holiday sales, and plans to continue to do so into the near future. Our respondents tell us that they plan to almost equally prioritize their holiday and everyday sales over the next year — 69 percent told us they plan to prioritize holiday sales, and 66 percent said everyday sales.

Stein: The sales data makes it clear how important everyday sales are compared to holidays. Everyday sales account for 42 percent of sales, according to our respondents, while holiday sales account for 31 percent of sales. Meanwhile, the research suggests there are a number of markets that are currently going untapped, including online, wedding and sympathy sales. The supply chain will have to decide where the future growth opportunities are.

TPN: Where can our readers get more information?

Roberts: The full report is available to association members. PMA members can download it from www.PMA.com/floral.

Stein: FMI’s members can download it from www.FMI.org/FreshFoods. And keep an eye out for future communications and/or educational activities about the research.