Page 10 - Super Floral > January 2014
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the state of the

Despite challenges ahead,
our industry is gearing up

for new opportunities in 2014.


Looking at our mass market/supermarket results for 70 percent of Gross Domestic Product (GDP), a key
floral in 2013 as a balance sheet, we can say that we measurement of economic productivity, is at the highest
ended up as a net positive, something we haven’t been levels ever.
able to say for the past couple of years. But it wasn’t The challenge for us, however, is that consumers
easy to get there, and we had to fight our way through aren’t spending freely on discretionary items, those
the hurdles and barriers that blocked our way. products that are seen as “wants” (deferrable purchases)
And many of the challenges that you and, more so, versus the things they “need” (life’s essentials such as
your customers had to face were externalities, things housing, transportation, food, health care and so on).
that neither you nor your customers had any direct The other consideration is that there’s very little real
control over but which greatly impacted their behaviors wage growth, so as the costs for the essentials increase,
and responses. Let’s look at a few examples of what you this results in fewer dollars being available for discre-
had to deal with in 2013. tionary spending.
“ The pessimist complains about the wind. dollars out of the economy, with a second round of
And then there’s the impact of the government
sequestration cuts that took significant trickle-down

The optimist expects it to change.
even deeper cuts planned for the first quarter of this
The good news is that we’re finally starting to see ”
The realist adjusts the sails.
year. For us, this means we have to offer a better com-
pelling value to persuade consumers to spend more of
their shrinking discretionary dollars on our products—
Consider, too, that while we’ve seen an improvement
the economy but more on that later.
in the reported unemployment rate to 7.2 percent,

wage and nonbenefited part-time hourly and contract
sustained growth although it’s slow and sputtering at much of this employment growth has been in lower
times. Consumer spending, which contributes almost work, where employers can easily scale their work force

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