1-800-FLOWERS reports nearly 9% Q2 revenue bump, thanks in part to loyalty program
“Customers who were looking to express themselves, connect and celebrate for the year-end holidays, as well as for everyday occasions, clearly responded to Harry & David’s 'Share More' brand messaging and its continued focus on truly original product offerings,” said CEO Chris McCann.
Cheryl’s Cookies and The Popcorn Factory lines also contributed to growth, he added.
Total revenues surpassed $570m, up from $526m at the same time last year. Gourmet Food and Gift Baskets continue to drive sales, rising 8.4% to $440m from the second quarter of 2018.
Everyday gifting pays off
In its quest to become a ‘leading, omni-channel provider of gifts,’ 1-800-FLOWERS acquired Harry & David in 2014 for $143m, just in time for the holidays, thrusting the online retailer’s annual sales above $1b.
The scoop brought Harry & David’s iconic ‘Tower of Treats’ layered gift box package, Moose Munch popcorn, chocolate-dipped pears, truffles, as well as Wolferman’s baked goods into the 1-800-FLOWERS ether. Then in 2017, 1-800-FLOWERS sold Chicago-based Fannie May to Ferrero and hasn’t looked back, the company told ConfectioneryNews last July.
Two months later, 1-800-FLOWERS launched its own confectionery division, Simply Chocolate, from which consumers can select from national brands and local premium products to include in gift baskets.
Memberships making repeat customers
In addition, the company’s Celebrations Passport loyalty program has provided a ‘strong value proposition’ of free standard shipping for a year for any product lines, which includes 1-800-FLOWERS, BloomNet, Goodsey, and the Stock Yard line of steaks and chops.
“The company is seeing double-digit growth in customers joining the Celebrations Passport program and steady increases in the percentage of total sales coming from Passport,” said PR manager Steven Dilakian in an email to ConfectioneryNews, noting that 12% new customer growth.
Aiming to provide consumers with a single family of go-to brands, the cross-promotional efforts mainly across digital channels has yielded ‘historically high customer satisfaction.’
“The company views frequency of customer interaction as its ‘North Star’ metric,” he added.