1-800-Flowers CEO expecting 'strong' Mother's Day despite soaring inflation
Chris McCann said 'consumers are still recognizing' important dates
CEO of 1-800-FLOWERS details impact of inflation on company, consumers
Chris McCann predicts the company will experience a 'strong Mother’s Day,' despite inflation sitting at 40-year highs.
Chris McCann, President and CEO of 1-800-FLOWERS, discussed whether soaring inflation will impact his business this Mother's Day and beyond.
"What we are finding is that consumers are still recognizing those important dates… none more important than Mother’s Day," McCann told "Cavuto: Coast to Coast" on Wednesday.
"We’re expecting a good, strong Mother’s Day," he added, noting that "sales the last couple of holidays have been strong and we expect that to continue."
McCann added that the company offers a broad range of products and price points for customers.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| FLWS | 1 800 FLOWERS COM | 8.43 | +0.14 | +1.69% |
"We need to recognize that not everybody can afford to spend X amount on mom… so we have price points starting at $5, $10, $20," he told host Neil Cavuto.
"We want to make sure that everybody has the opportunity to give mom the recognition they deserve."
The Warm Sunset Bouquet from 1800-Flowers. (1-800-FLOWERS)
McCann also discussed the impact of increased costs for everything from gas to labor, stressing that the inflationary cost pressures on the company does present a "challenge."
Inflation accelerated to a new four-decade high in March and price hikes were widespread with energy prices rising a staggering 11% in March from the previous month, and are up 32% from last year.
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Gasoline, on average, costs 48% more than it did last year after rising 18.3% in March on a monthly basis as the Russian war in Ukraine fueled a rapid increase in oil prices.
Last month, the Labor Department said that the consumer price index (CPI) – which measures a bevy of goods including gasoline, health care, groceries and rents – rose 8.5% in March from a year ago, the fastest pace since December 1981, when inflation hit 8.9%. Prices jumped 1.2% in the one-month period from February, the largest month-to-month jump since 2005.
The inflation data for April will be released next week.
Will soaring inflation impact how much people spend on moms this Mother's Day?
Chris McCann, president and CEO of 1-800-FLOWERS, discusses consumer demand and the impact of inflation, noting that the 'last thing we ever want to do as a retailer is pass costs onto the consumer.'
McCann noted that last year his company had $100 million of additional costs.
"But because of some of our efforts, we were able to mitigate about half of that and we continue to mitigate those costs going forward," he told Cavuto.
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"The last thing we ever want to do as a retailer is pass costs onto the consumer," he added, acknowledging that his customers are "facing pressure themselves."
"So it’s our job to figure out how to make sure we price our product at the right price point that delivers a very good value to the customer," McCann said.