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Navigate Economic Headwinds to End the Year Strong

by | Sep 17, 2025 | Floral Industry News | 0 comments

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As florists head into the fourth quarter — traditionally one of the busiest periods of the year — the picture is both challenging and full of opportunity. Rising costs, tariffs, and inflationary pressures loom large, but many business owners are finding creative ways to finish strong, according to a recent survey by the Society of American Florists.

Mixed Signals, Rising Costs

The year has been a “mixed bag” for floral businesses, SAF Chief Economist Charlie Hall, Ph.D., told attendees during his keynote address at SAF Phoenix 2025, the organization’s 140th annual convention last month (watch his full address here.). Some operators are thriving, while others struggle against cash flow pressures, soft demand and the specter of tariffs.

“Margins and cash flow pressure, tariffs, inflation, labor scarcity and competitive pressures are all part of the equation right now,” Hall said.

He warned that florists should expect inflationary pressure to build in the second half of the year as pre-tariff inventories are sold through, with tariffs eventually squeezing profit margins. The most recent inflation data, released in August, underscores Hall’s warning: consumer prices rose 2.9 percent year-over-year — the highest since January — with core inflation holding at 3.1 percent, signaling that broad-based price increases are beginning to take hold.

Consumer spending on flowers remains above pre-pandemic levels, but growth has plateaued. “We’re basically in the economic equivalent of the dog days of summer,” Hall noted, pointing to flat consumer spending trends.

That plateau mirrors the results of SAF’s July Economic Outlook survey. Roughly a third of respondents reported higher first-half 2025 sales than last year, another third saw declines, and the rest were flat. About 71% said their sales are still above 2019 benchmarks, underscoring both resilience and uneven performance.

Still, unease is rising. “With all this tariff uncertainty people are getting more scared and as prices on everything go up there will be less disposable income for things like flowers,” predicts Cathy Herrold of Gracis Flowers in Selinsgrove, Pennsylvania.

Patricia Meredith, of Andy’s Creations in Kennett, Missouri, echoed that sentiment. “Increasing costs are forcing us to raise pricing, and customers are cutting optional spending.”

Florists Adapt and Innovate

Many florists are leaning hard into marketing, customer engagement and product innovation to carry momentum through the holiday season.

“We update our product catalog throughout the year, gradually shifting online with noticeable trends,” said Ben Heroman of Billy Heroman’s in Baton Rouge, Louisiana.

For Stefanie Rasch of Pesche’s Greenhouse, Floral & Gifts of Lake Geneva, Wisconsin, the key is “outstanding customer service … helping shoppers find products they didn’t know they needed, bringing in fresh products and posting our work on social media.”

Others are creating urgency through limited-time collections. “Our new summer series of printed cachepots feature ‘going-going-gone’ marketing to create urgency. It works — we sell out each week,” said Lisa Hays Holmes of Tiger Lily Florist in Charleston, South Carolina, and the 2024 winner of SAF’s Marketer of the Year award.

Plans for a Strong Finish

Looking ahead to the holidays, florists are sharpening their focus on consumer experience and creative selling.

· Data-driven assortments: “We analyze styles, colors, specific flowers and pricing,” said Holmes. “We’re creating an exciting Thanksgiving and Christmas assortment and focusing advertising on our new Bloom Bar.”

· Social media push: “We will continue to push social media,” said Rakini Chinery of Allan’s Flowers in Prescott, Arizona. “We are planning more open houses than ever before … and partnering with other businesses in town for contests.”

· In-store experiences: Deer Run Florist is expanding workshops, plant offerings, and in-home decorating services, while scaling back tariff-heavy hard goods. “We have already decreased our hard good Christmas décor to offset the extra tariff impact,” said Lisa Plocha, of the Eatonton, Georgia business.

· Fresh merchandising: Diane Schulte of Metcalf’s Floral Studio in Madison Wisconsin, emphasized the importance of “keeping the sales floor ever-changing and fresh.”

The Bottom Line

Hall’s advice: be nimble. “You’re going to have to either increase prices … or sharpen the pencil and find cost savings somewhere,” he said.

Amanda Jedlinsky is the senior director of content and communications for the Society of American Florists.

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