Chains predict '94 growth in artificial flower sales

Discount Store News, Jan 3, 1994

Crafts specialty chains, full-line discounters and vendors forecast robust sales of artificial flowers in 1994.

"Overall floral posted very strong same store sales increases in 1993 and we are very bullish about the category in 1994," said Kimberly Lee. vice president, marketing, with the 105-unit Leewards Creative Crafts chain. More store space and assortments will be tested this year in some of the chain's larger stores, she noted.

Michael Dupey, ceo of the 31-unit crafts chain, MJ Designs, said floral and ribbons is a growing category at his stores, occupying nearly half the selling space in the 25,000-sq.-ft. to 30,000-sq.-ft. stores.

Unlike crafts specialty chains, full-line discounters continue to have disproportionately high sales of floral arrangements and memorial pieces when compared with the component stem and pick business done at crafts chains. The absence of floral designers--becoming common in crafts specialty chains--and sparse instructional material means there is little to inspire consumers to try their hand at floral arranging projects.

Rick Randall, merchandise manager of the housewares division at Hills, the Canton, Mass.-based discounter that emerged recently from Chapter 11, said the chain's arrangement business has grown better than stems and picks, as have other floral items that don't require arranging, such as floor plants and memorial decorations. Floral averages 24 linear ft. in Hills stores. Overall sales of the category have been "strong" and no big changes are planned for this year.

Greater attention to instruction by vendors could help more shoppers try their hands at floral arranging. Reliance Trading, Chicago, for instance, will unveil a new line of project books at the Hobby Industry Association show in Las Vegas later this month, including books geared to the beginner, such as Fifteen-Minute Flower Arrangements.

Like many retailers, floral suppliers expect a good 1994, especially if pansies are able to build the kind of demand sunflowers did.

Jim Kropp, vp, marketing, Teters Floral Products, said sales were already looking good for 1994. "We had a lot of earlier bookings of spring merchandise than usual, which is a good sign. Most of spring would come in February, but this year some spring orders were coming in late November." Kropp estimated sales would climb 5% to 10% in '94, mostly from increased business with craft chains.

New merchandising systems that enable 64 skus to be merchandised in a 4-ft. long area (as compared to the previous 42 Teters skus), is also expected to build sales through all retail channels. A promotional pallet for memorial decorations will also be a new offering from Teters this year.

Ira Kleinberg, president of Reliance Trading, estimated that sales for the year ending April 30, 1994 will be up nearly 9% over last year. He expects the second half of calendar year 1994 to be even stronger .

Reliance will also be gaining a new perspective on the artificial flower business with the addition of former Caldor vp, home/hard lines, Robert Gerdoney, who just joined the company as executive vice president, sales.

While the flowers' sales are growing, so are sales of containers used in artificial flower arrangements.

Tom Moore, national sales manager with glass manufacturer Crisa, said vases, canisters and votive holders geared toward the floral and crafts market have been a growth area for the company. A year ago, Crisa had almost no sales through crafts channels. But by the end of last year, sales were nearly 5% and could double by the end of this year.

Last year was Crisa's first at the HIA show. This year they will be experimenting with joint merchandising with other vendors, with Crisa and the suppliers making use of each other's products in booth displays and projects.