Easter 2011

Steady Historical Sales Predict Solid

2011 Supermarket Floral Sales This Easter

March 2011

The Perishables Group, Inc.

As much of the U.S. begins to thaw out from another winter, droves of people are excited to see the first signs of spring – buds on the trees, sprouting grass, and the emergence of tulips and daffodils from the ground. While the signs of spring are hard to miss, supermarket retailers have the opportunity to ensure consumers don’t miss out on the joys of spring this Easter season, regardless of how the weather may fare. Retailers can focus the department and displays around fresh blooming flowers and arrangements, which are traditionally the largest volume-moving items during the weeks leading up to Easter.    

In reviewing point-of-sale floral data within the traditional grocery channel for the four-week periods leading up to Easter 2009 and Easter 2010, Easter 2010 volume experienced a slight increase of 0.6% from Easter 2009. The bouquet category was most popular both years, accounting for about 28% of volume each year. Bouquets, combined with 2010 sales of flowering/foliage plants (24.7% of department volume) and floral arrangements/vases/dish gardens (23.0% ofvolume), helped define the Easter season as one focused on flower arrangements, bouquets and blooming plants. Similar volume trends occurred in 2009, supporting the notion that the industry can benefit from carrying ample floral arrangements and bouquets during Easter 2011 to maximize sales. Past popular items that are likely to sell well this year include mixed vase arrangements, 6-inch blooming plants and single-stem cut flowers.

The floral categories with the strongest growth in 2010 included silk and dry flowers/arrangements as well as floral arrangements/vases/dish gardens, which both increased volume sales by double digits.  In contrast to this success, sales of outdoor plants/shrubs/seasonal plants suffered last Easter, with a 31.1% decrease in volume compared to Easter 2009, despite no reduction of their availability in stores. With Easter falling relatively late this year (three weeks later than 2010) consumers may be more focused on outdoor plants/shrubs and seasonal plants.  Retailers should be prepared to capitalize on a shift in consumer purchase priorities that reflect Easter falling at a time when more homeowners are engaged in home improvement activities. 

Supermarket floral sales were most successful in the South region, accounting for 64.1% of U.S. floral department volume during Easter 2010. However, this share of sales was below the 2010 average for the entire year, in which the South contributed 72.1% of U.S. floral department sales. This difference in volume share implies that Easter floral sales in the South region may actually be underperforming, since the share of Easter sales was not as high as the region’s average share of sales for the entire year.

Reporting the lowest volume share, the Central region accounted for 7.8% of U.S. supermarket floral sales during Easter 2010. According to the U.S. Census Bureau, the Central region accounts for 21.8% of the U.S. population. Based on this statistic, a major opportunity exists for grocery store retailers to improve Easter floral sales within the Central region and bring its share of floral sales more in line with the population in this region.

Since Easter 2009 and 2010 floral sales remained steady during the recession when consumers were more frugal with their money, floral sales during Easter 2011 are poised to increase this year. This is especially true for retailers who have found success in focusing on bouquets, flowering/foliage plants and floral arrangements/vases/dish garden products. The weeks leading up to Easter are a great time to focus not only on holiday-centered floral purchases, but also to remind consumers to add a touch of fresh flowers or plants to their homes.

Easter 2011 Floral Market Watch

The majority of supermarket retailers surveyed said their Easter 2011 sales increased compared to last year, while the majority of suppliers stated that sales remained the same.  This was likely fueled by a steady economy and retailers responding with a variety of high– and low–priced items.

However, Easter 2011 holiday performance did not meet the same expectations as 2009 and 2010 for both retailers and suppliers. The majority of  retailers reported that Easter 2011 floral sales were affected by inclement weather, which may have been a driving factor in expectations not being met.

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