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Consumer spending expectations for Easter

NEWS HIGHLIGHT

Consumer spending expectations for Easter
Consumers in the U.S. are expected to spend 17 per cent
less on flowers in all retail outlets this Easter.

Consumers in the U.S. are expected to spend 17 percent less on flowers in all retail outlets this Easter, with the average dropping from $9.11 last year to $7.55 in 2009, according to the National Retail Federation. Overall Easter sales will fall 13.7 percent, with Americans predicted to spend an average of $116.59 on Easter candy, gifts, food and decorations, compared to $135.03 last year, according to NRF's 2009 Easter Consumer Intentions and Actions Survey.

With Easter falling three weeks later than in 2008, NRF CEO Tracy Mullin said the group hopes merchant advertising and warm weather will put consumers in “a mood to buy clothing, flowers and other holiday gifts.”

Jump Back: 2008 Sales

Here’s a snapshot of Easter 2008, based on SAF's post-holiday online survey:

Source: The Society of American Florists

Last year, 23 percent of florists reported an increase in Easter sales over 2007; their average increase was 13 percent. Fifty-one percent reported a decrease; their average decrease was 18 percent. More smaller shops and rural locations reported gains.

Florists saw their competition coming primarily from supermarkets

The average transaction was $43.41, up 60 cents from 2007 and about the same as in 2006.

Cut flowers accounted for 63 percent of  sales. Houseplants, including Easter lilies, account for 24 percent of sales; bedding plants make up the remainder.

Source: The Society of American Florists

Close to two-thirds (65 percent) of florists sold fewer Easter lilies in 2008 than in 2007 (compared to 56 percent who sold less in 07 than in 06. Lilies sales were up at 10 percent of shops, and 22 percent reported flat sales. The average increase was about 12 percent; the average decrease 20 percent.

According to the most recent data on Easter lilies from the U.S Department of Agriculture (USDA), the number of Easter-lily producers fell from 340 to 317 in 2007. Production rose from 6.3 million pots to more than 6.6 million during that time period, with a consequent increase in wholesale value from $26.1 million to almost $27 million. USDA will release production figures for 2008 at the end of April.

Source: SAF Post-Easter Online Survey of Retail Florists. Based on 395 responses (response rate 11 percent). (37 percent), mass merchandisers (21 percent) and order gatherers (10 percent).