Piggybacking on Prime Day helped 1-800-Flowers.com Inc. drive enrollment in its Celebrations Passport program.
Amazon.com Inc., No. 1 in the Internet Retailer 2017 Top 500, held its third annual Prime Day shopping event on Tuesday, July 11. To ride the tailwind of Prime Day, 1-800-Flowers.com (No. 59) promoted “Passport Day” on July 12 and offered 25% off select gifts, plus free shipping and no service charge with Celebrations Passport membership.
The Passport membership typically costs $29.99 a year but was available on Passport Day for $19.99. The loyalty program gives members free shipping and no service charge for a year across the retailer’s brands, which include 1-800-Flowers, Harry & David, Cheryl’s cookies, The Popcorn Factory and Wolferman’s baked goods.
“We saw enrollments to Passport up over 300% that week, conversion rate of our Passport offering up over 250% to the 300% range,” CEO Chris McCann said on the retailer’s fiscal Q4 and full-year conference call in late August, according to a SeekingAlpha transcript.
“Revenue from our Passport customers is up about 150% that week,” he said. “Things like [Prime Day] give us the opportunity—it was kind of a test to show us there are other types of campaigns that we can and will run throughout the year to try and accelerate our growth in Passport.”
For the fiscal year, strong consumer floral sales helped drive e-commerce growth for the retailer. Online sales increased 2.7% in fiscal Q4 ended July 2, to $191.36 million from $186.41 million a year ago. For the fiscal year, e-commerce gained 1.6% to $896.76 million from $882.78 million.
“During the fiscal fourth quarter, we achieved solid revenue growth across all three of our business segments,” McCann said, referring to the consumer floral unit, food and gift baskets and BloomNet wire service corporate sales and business-to-business divisions. “In our floral businesses, we continue to extend 1-800-Flowers’ brand’s market leadership position, growing approximately 3% on a comparable basis,” he said.
“Revenue growth in these segments was driven by strong everyday gifting demand combined with solid growth for the Mother’s Day holiday period. For the 1-800-Flowers brand, revenue growth for Mother’s Day was consistent with that of the overall quarter at approximately 3%,” McCann said.
For fiscal Q4 2016 ended July 2, 1-800-Flowers.com reported:
- E-commerce sales of $191.36 million, up 2.7% from $186.41 million in Q4 of fiscal 2016.
- Total sales of $239.53 million, up, 2.2% from $234.40 million.
- Consumer floral sales of $139.43 million up 1.4% from $137.54 million.
- Gourmet food and gift baskets sales of $78.38 million a 3.9% increase from $75.45 million.
- BloomNet Wire Service revenue of $22.14 million, up 1.8% from $21.74 million.
- About 2.0 million customers placed orders, of which about 910,000, or 45.5%, were new customers.
- Net income of $8.01 million compared with a loss of $11.1 million. Excluding the gain generated by the sale of the Fannie May unit, net loss was $7.2 million, 1-800-Flowers.com said.
For the fiscal year ended July 2, 1-800-Flowers reported:
- E-commerce sales of $896.76 million up 1.6% from $882.78 million compared with the same period a year ago.
- Total sales of $1.194 billion, up 1.8% from $1.173 billion.
- Consumer floral sales of $437.13 million, up 4.5% from $418.49 million.
- Gourmet food and gift baskets sales of $670.68 million, flat compared with $670.45 million.
- BloomNet Wire Service revenue of $87.70 million, up 2.6% from $85.48 million.
- About 7.0 million customers placed orders, of which about 3.6 million, or 51.7%, were new customers.
- Net income of $44.04 million compared with $36.88 million.