Floral & Gifts Retail Industry Trends

Gift Spending Increasing

Customers are spending more on gifts and giving gifts more frequently on occasions other than the winter holidays. Gift-givers increased spending almost 15 percent between 2005 and 2006, according to Unity Marketing. The percentage of spending on gifts for occasions such as birthdays and anniversaries increased, indicating the growing importance of non-holiday merchandise.

Sourcing Through the Internet

While gift retailers still rely on trade shows, trade publications, and manufacturers sales reps to make merchandising decisions, an increasing number of companies are turning to manufacturer websites, according to Gifts and Decorative Accessories Many buyers are using the Internet to look for new products and review vendors.

Retail Prices Increasing

The retail price for a “market basket” of standard gift items increased 30 percent between 2004 and 2006, according to Gifts and Decorative Accessories. The market basket included top-selling gift items, including candles, greeting cards, jewelry, and seasonal items. Higher-priced items included wall art and collectibles. Growing price-based competition from mass merchandisers and discounters at the low end of the gift market has driven many gift retailers to focus on more expensive specialty items.

Declining Employment

Employment in gift stores declined about 5 percent annually between 2001 and 2006. The gift retailing industry has yet to recover from the last recession, when a soft economy and competition from large alternative retailers forced many gift stores to close. Even large gift retailers suffered, as many cut back on staff or went out of business.