In an industry dominated by small, local shops, Flowerman, a Toronto-based retailer, has ambitious plans that include a universal 310 delivery number and eventual expansion of the brand across Canada.
Like Pizza Hut which launched a 310 number last fall, Flowerman is using the number to make ordering easier.
Starting July 1, consumers can call 310-ROSE from anywhere in Ontario to order flowers for delivery in Flowerman’s markets.
Flowerman has 10 stores in Southern Ontario, most of which are in the Toronto area, but the company hopes to use the benefits of the 310 number to attract interested franchisees in new markets.
‘Our overall strategy is to take over exisiting businesses,’ says Jeffrey Wood, president of Nova Growth, the publically-traded company that owns the Flowerman stores.
Wood says ‘take over’ can mean several things, from working with existing florists to offering retiring florists the opportunity to swap their business for shares in Nova Growth.
Flowerman offers existing local flower shops the convenience of the 310 number, the purchasing power of Flowerman’s recently acquired wholesale division and the technological innovations the company has developed for its existing stores.
‘With the computer software we have, we can handle their backroom and minimize their overhead. We add a lot to their existing store,’ says Wood.
Under the arrangement, local retailers who join Flowerman would not have to give up their exisiting names.
Instead, they would be required to simply incorporate the Flowerman name into their own. Joanne’s Flowers, for example, would become Joanne’s Flowerman.
This way, says Wood, the value of a store’s name is not lost in the transition.
‘Flower stores have a lot of tradition in their neighborhoods. That’s one of their strongest points.’
The growth of the Flowerman chain depends, in large part, on the development of the 310 phone number technology.
The company will expand as more and more of Canada’s telephone companies offer the 310 exchange.
According to Wood, the flower business is in much the same state as the pizza business 20 years ago: dominated by mom and pop stores.
He expects the flower business will go through a similar evolution which could see the market controlled by a few large players.
Flower shops have been under enormous pressure in recent years from supermarkets, department stores and variety stores, many of which now offer fresh flowers.
(While the consumption of flowers has been increasing, the sale of flowers at dedicated flower shops has declined.)
Wood says there is a perception among consumers that grocery and convenience stores are cheaper, as well as more convenient, despite the fact that many retailers, like Flowerman, now offer bouquets for as little as $2.99.
At present, Flowerman is working in-house on a 310-ROSE radio jingle, and will be using its 20,000-customer strong database for a direct-mail campaign promoting the service.
That database contains personal information such as birthdates and anniversaries, allowing Flowerman to precede these days with a sales call.
The company also sends out brochures before Mother’s Day and Valentine’s Day, allowing customers to pre-book deliveries for such events. Flowerman can automatically debit deliveries from customers’ credit cards.
Wood says the company does not have an ad agency at the moment, ‘but that’s not to say we won’t in the future.’
According to Statistics Canada, sales of fresh flowers topped $595 million in 1992, the most recent year for which figures are available.
With its nine stores, Flowerman accounts for about $3 million in sales annually.