TIPTOE THROUGH AND PROFIT

DONNA W. CROTHERS

Tulips are the harbingers of spring in many areas of the country -- and in the supermarket floral department as well. When the weather turns warmer, tulips pop up in arrangements and bouquets in supermarkets everywhere -- and the popularity of tulips is growing as supplies increase and costs come down.

"There always seems to be a hunger for spring to get here," said Sue Zoladkiewicz, floral manager and merchandiser for Roundy's, Pewaukee, Wis. "Spring is the big season for tulips, but it usually starts in January," long before tulips will emerge from the ground.

At Stop & Shop Supermarket Co., an Ahold-owned chain based in Quincy, Mass., director of florist sales and procurement Sandra Hering said tulips are a big part of introducing the spring season in the floral departments. "If tulips were in our stores year-round, there wouldn't be the excitement" that the advent of tulips currently provokes. Tulips traditionally are the top-selling flower for Stop & Shop's sales at the New England Flower Show, held in March in Boston, said Hering.

"The tulip is perfect for this time of year, because it says, 'Spring is here and let's get some color into our lives,' " said Robert Perilla, president of Public Relations Marketing Inc., Glenwood Landing, N.Y., representatives of the Flower Council of Holland. Many tulips sold in the United States are imported from that country, which is responsible for about 60% of the world's cut-flower exports, said Perilla.

"Our branded containers from FTD seem to be using more tulips in arrangements for Easter and Mother's Day," commented Susan Pipes, floral coordinator for Gerland's Food Fair, Houston. And a floral buyer for a large Southeastern supermarket chain, who requested anonymity, agreed: "We have always promoted tulips in the springtime, but we have seen the demand increase pretty dramatically in the last couple of years."

She added that the chain obtains its tulips from northern California, Washington state and Pennsylvania, as well as from Holland. But tulips aren't just for spring anymore, even though three-quarters of Holland's tulips are sold between January and April, according to statistics.

Tulips are readily available from Holland from the fall into December, and again from mid-January through mid-May, and more and more retailers are using them for Christmas, Valentine's Day and even fall arrangements. Zoladkiewicz of Roundy's said she was "pleasantly surprised by the numbers of customers responding" when Roundy's offered tulips during Christmas 1998.

At H.E. Butt Grocery Co.'s Central Market stores in Texas, floral buyer Christie Williams said that 17,000 bunches of tulips were sold over the Christmas 1998 holidays in the two Central Market stores. "It is amazing the amount of tulips we have gone through since then," Williams said. "We have promoted them consistently for three months, and consumers love them."

For example, in January, Central Market offered 10-stem bunches of tulips for $4.99, according to Williams. Part of the reason that H-E-B's Central Market and other retailers can offer tulips in such abundance and at such palatable prices is the improved technology that has increased supplies from abroad.

Perilla noted that Holland tulips often are grown hydroponically and are pretreated with nutrients for longer life. In addition, packing methods have improved and, after being precooled, tulips from Holland are transported upright in boxes in refrigerated planes.

"The tulips are cut in Holland, and we get them within three days," said Williams.

"In the tests we have done, [tulips] have an average five days of vase life," she said, noting that one characteristic of tulips that consumers enjoy is that the flowers actually continue to grow after being cut. "Once tulips are cut and put in water, they will grow another 1 to 4 inches," she said.

The new methods of har- vesting and distribution have helped the shelf life of tulips. "The shelf life has definitely improved. Customers get more enjoyment and that helps repeat sales," said Zoladkiewicz of Roundy's, who estimates average shelf life of tulips at six days. "If they are quality flowers and the shelf life is there, consumers are willing to pay more," she said.

However, Stop & Shop's Hering points out that tulips' shelf life remains less than for other flowers, and that means carefully watching how supplies turn in the floral department.

"We have to watch how long tulips are in our stores. To give the consumer five days [of vase life], we can only carry them in our stores for three days," she said.

Besides a longer vase life, value for the consumer is also apparent as prices for these flowers remain moderate, in part due to the strength of the dollar against foreign currencies, according to those interviewed by SN.

"We used to stick to a five-stem bunch [to keep the retail price point down], but now we can do 10 stems" as costs are coming down, remarked the floral buyer at the Southeastern supermarket chain.

At Central Markets, an Easter promotion featured 10-stem bunches of tulips for about $7, according to Williams.

Zoladkiewicz said lower tulip prices have meant that Roundy's is able to offer its retail customers "very competitive" pricing, often resulting in a retail price tag of $4.98 to $5.98 per 10-stem bunch. "We have found that if the quality is there, customers will pay more than $3.98" for a bouquet, she added.

And Hering of Stop & Shop said that for Easter, "I was out at $5.99 for a 10-stem bunch," with expectations that consumers would find that a pleasing price point. Hering added that due to higher prices, "Last year, we had a different sized bunch to keep the tulips affordable."

However, tulips remain slightly higher priced than many cut flowers, and Pipes of Gerland's said that has meant tulips are most often a special-occasion purchase in her stores.

"We don't find that many people complain about the price of tulips for special occasions like Easter, but for everyday use, customers tend to go for something like carnations," Pipes said. She added that tulips are not often featured in Gerland's Build Your Own Bouquet stem section because, at three bouquets for $10, "the stem cost is usually a little lower than tulips."

Although tulip prices are coming down, Perilla also has seen a trend toward less concern among retailers about low price points and more emphasis on quality at supermarket floral departments.

"Years ago, supermarket buyers were interested only in price, but now they say, 'I want quality and value,' " he said.

Perilla added that because supermarket floral departments have expanded their offerings, they account for 50% of all floral sales in the United States.

As supermarket floral departments grow, tulips are being offered in a multitude of varieties. More than 325 tulip varieties are sent to market each year, according to Perilla, and many retailers are carrying more of the exotic varieties, such as the frilly-topped parrot tulips.

"Now, you can go into a supermarket, and they will have 10 colors of tulips instead of one or two -- a lot are buying the two-tone tulips," said Perilla.

Williams has expanded the selection at Central Markets to include as many as 20 or more varieties.

"The French tulips are really fun, and in the French, we carry five or six varieties, as well as five or six in the parrot. In regular tulips, we carry 10 varieties," she said. "And the colors that they have come up with are incredible."

In addition, Central Markets offers blooming potted tulips on holidays such as Christmas, Valentine's Day and Easter, according to Williams.

"The varieties and colors are so much more advanced than the traditional pink and yellow," agreed Zoladkiewicz of Roundy's. "Once exposed to the uniqueness [of new tulip varieties], the customers are hungry for them."

As more varieties of tulips have become available, the presentation of tulips has changed, as well. For example, Central Markets orders special vases that are 7 to 8 inches tall with tighter mouths for tulips. Roundy's has seen some of the stores it supplies using a Dutch theme in tulip displays.

"Some of the stores have used wooden shoes in their displays. We tell them to utilize the link between the tulips and Holland," said Zoladkiewicz.

Retailers also like the fact that tulips don't have to have constant refrigeration to keep their quality. Tulips are easy-care products, she noted.

"Tulips don't mind being outside of the refrigerator" and this ease of grabbing helps sales growth, said Zoladkiewicz. "It's a very easy cash-and-carry item -- we sell a lot from European-styled displays."

Hering of Stop & Shop said that during high-volume periods, "You will see tulips massed in the front of the store in unrefrigerated displays." However, she noted that during slower periods, she likes to keep tulips under refrigeration to prolong the vase life.

Williams of Central Markets noted that some consumers don't fully understand the characteristics of tulips. "The misconception of consumers is that tulips stand straight up. But actually, their character is to be whimsical and droopy," she said, suggesting that consumer who want tulips to stand at attention might leave the plastic sleeves on the tulips while they are hydrating in the home.

Stop & Shop sells its tulips with a care tag so that consumers will understand the needs of tulips and how to get the look they want.

"We always have some tulips arranged showing consumers how they look in a vase. It really is a simple flower to arrange," Hering added.

Tulips have become so popular that many retailers get requests for tulips at times of year such as summer, which is not the prime growing season for tulips. Although "ice tulips" (which are frozen and brought out to be planted during the summer) and forced tulips are available during such times, Perilla suggests that tulips be sold in season.

"You should really try to sell them when they are the best. That's when you get the repeat sales," he said.

The new methods of harvesting and distribution have helped the shelf life of tulips. "The shelf life has definitely improved. Customers get more enjoyment and that helps repeat sales," said Zoladkiewicz of Roundy's, who estimates average shelf life of tulips at six days. "If they are quality flowers and the shelf life is there, consumers are willing to pay more," she said.

However, Stop & Shop's Hering points out that tulips' shelf life remains less than for other flowers, and that means carefully watching how supplies turn in the floral department.

"We have to watch how long tulips are in our stores. To give the consumer five days [of vase life], we can only carry them in our stores for three days," she said.

Besides a longer vase life, value for the consumer is also apparent as prices for these flowers remain moderate, in part due to the strength of the dollar against foreign currencies, according to those interviewed by SN.

"We used to stick to a five-stem bunch [to keep the retail price point down], but now we can do 10 stems" as costs are coming down, remarked the floral buyer at the Southeastern supermarket chain.

At Central Market, an Easter promotion featured 10-stem bunches of tulips for about $7, according to Williams.

Zoladkiewicz said lower tulip prices have meant that Roundy's is able to offer its retail customers "very competitive" pricing, often resulting in a retail price tag of $4.98 to $5.98 per 10-stem bunch. "We have found that if the quality is there, customers will pay more than $3.98" for a bouquet, she added.

And Hering of Stop & Shop said that for Easter, "I was out at $5.99 for a 10-stem bunch," with expectations that consumers would find that a pleasing price point. Hering added that due to higher prices, "Last year, we had a different sized bunch to keep the tulips affordable."

However, tulips remain slightly higher priced than many cut flowers, and Pipes of Gerland's said that has meant tulips are most often a special-occasion purchase in her stores.

"We don't find that many people complain about the price of tulips for special occasions like Easter, but for everyday use, customers tend to go for something like carnations," Pipes said. She added that tulips are not often featured in Gerland's Build Your Own Bouquet stem section because, at three bouquets for $10, "the stem cost is usually a little lower than tulips."

Although tulip prices are coming down, Perilla also has seen a trend toward less concern among retailers about low price points and more emphasis on quality at supermarket floral departments.

"Years ago, supermarket buyers were interested only in price, but now they say, 'I want quality and value,' " he said.

Perilla added that because supermarket floral departments have expanded their offerings, they account for 50% of all floral sales in the United States.

As supermarket floral departments grow, tulips are being offered in a multitude of varieties. More than 325 tulip varieties are sent to market each year, according to Perilla, and many retailers are carrying more of the exotic varieties, such as the frilly-topped parrot tulips.

"Now, you can go into a supermarket, and they will have 10 colors of tulips instead of one or two -- a lot are buying the two-tone tulips," said Perilla.

Williams has expanded the selection at Central Market to include as many as 20 or more varieties.

"The French tulips are really fun, and in the French, we carry five or six varieties, as well as five or six in the parrot. In regular tulips, we carry 10 varieties," she said. "And the colors that they have come up with are incredible."

In addition, Central Market offers blooming potted tulips on holidays such as Christmas, Valentine's Day and Easter, according to Williams.

"The varieties and colors are so much more advanced than the traditional pink and yellow," agreed Zoladkiewicz of Roundy's. "Once exposed to the uniqueness [of new tulip varieties], the customers are hungry for them."

As more varieties of tulips have become available, the presentation of tulips has changed, as well. For example, Central Market orders special vases that are 7 to 8 inches tall with tighter mouths for tulips. Roundy's has seen some of the stores it supplies using a Dutch theme in tulip displays.

"Some of the stores have used wooden shoes in their displays. We tell them to utilize the link between the tulips and Holland," said Zoladkiewicz.

Retailers also like the fact that tulips don't have to have constant refrigeration to keep their quality. Tulips are easy-care products, she noted.

"Tulips don't mind being outside of the refrigerator" and this ease of grabbing helps sales growth, said Zoladkiewicz. "It's a very easy cash-and-carry item -- we sell a lot from European-styled displays."

Hering of Stop & Shop said that during high-volume periods, "You will see tulips massed in the front of the store in unrefrigerated displays." Howev-er, she noted that during slower periods, she likes to keep tulips under refrigeration to prolong the vase life.

Williams of Central Market noted that some consumers don't fully understand the characteristics of tulips. "The misconception of consumers is that tulips stand straight up. But actually, their character is to be whimsical and droopy," she said, suggesting that consumer who want tulips to stand at attention might leave the plastic sleeves on the tulips while they are hydrating in the home.

Stop & Shop sells its tulips with a care tag so that consumers will understand the needs of tulips and how to get the look they want.

"We always have some tulips arranged showing consumers how they look in a vase. It really is a simple flower to arrange," Hering added.

Tulips have become so popular that many retailers get requests for tulips at times of year such as summer, which is not the prime growing season for tulips. Although "ice tulips" (which are frozen and brought out to be planted during the summer) and forced tulips are available during such times, Perilla suggests that tulips be sold in season.

"You should really try to sell them when they are the best. That's when you get the repeat sales," he said.