Things are starting to look positive, with many economic indicators pointing to signs of a recovery. How is our industry responding to these signs? SAF has produced a survey that includes 3 major segments of our industry, Retail, Wholesale and Growers.
SAF Survey: By Ira Silvergleit
When SAF asked members in mid-March to forecast their sales for the next six months, the Dow had yet to break 11,000 and U.S. chain stores had yet to report a record year-over-year increase in same-store sales for that month. While those encouraging developments came this past week, SAF members were already showing their own signs of optimism.
In each category, the percentage forecasting sales improvements has risen dramatically from a year ago. Of the three industry segments, retailers remain the most cautious. And with substantially more retailers responding, their results are the most reliable.
Question: What are your expectations of your sales over the next six months?
Growers (based on 19 responses)
Improve: 53 percent
Remain the same: 42
Worsen: 5
Unsure: 0
Signs of Improvement: More than half foresee improved sales in the next six months, more than double the 26 percent that said so in the first quarter of 2009.
Room for Improvement: The percentage of growers who see no signs of improvement remains stuck at 42 percent, virtually the same as last year.
Wholesalers* (based on 32 responses)
Improve: 56 percent
Remain the same: 34
Worsen: 6
Unsure: 3
*includes suppliers and importers
Signs of Improvement: A majority predict their sales will improve in the next six months, a spectacular increase from 13 percent in the first quarter of 2009.
Room for Improvement: Can 34 percent of wholesalers who predict stagnant sales turn the corner in 2010?
Retailers (based on 592 responses)
Improve: 40 percent
Remain the same: 40
Worsen: 13
Unsure: 7
Signs of Improvement: The percentage of retailers seeing improvement on the horizon grew 25 percentage points to 40 percent. And those predicting a drop off fell to 13 percent, compared to 39 percent a year ago.
Room for Improvement: Four in 10 florists say their sales will remain static for the next six months.
