Article

Edible Arrangements thrives, despite economy

How the "luxury" retailer grew at an amazing pace in 2009, despite the recession.

February 9, 2010

The world has spent the past year in economic malaise, but someone forgot to tell Edible Arrangements. The Connecticut-based retailer, which sells floral-inspired arrangements made from fresh fruit and chocolate, had an amazing year in 2009, opening 74 new company stores and signing 85 new franchise agreements. That brings the company's total location count to nearly 1,000, in more than a dozen countries.

The company was founded in 1999 by CEO Tariq Farid, who began his career as a florist at age 17 in 1986. Originally, the focus of Edible Arrangements was corporate gifts, but Farid said when 2001 rolled around, his corporate customers cut back their spending dramatically.

"We learned quickly at that point how to go after the consumer market," he said.

By all accounts, the company's product is resonating with the consumer market very well: Farid notes that 75 percent of people who buy an Edible Arrangement, which can run from $25 to $150, become repeat customers.

"When my father passed away last year, someone sent (me) an Edible Arrangement," said cookbook author and dietitian Jull Nussinow. "It was one of the best things that arrived since it looked great and you could eat it. You can't do that with flowers."

Caregiver Brenda Avadian had a similarly positive experience. Her husband bought her an arrangement to celebrate her 49th birthday, and some visiting friends were there to see it. A year later those friends got married, and chose the same arrangement in lieu of a wedding cake.

"It doesn't surprise me that Edible Arrangements is doing well during challenging economic times," said retail consultant Susie Pecuch. "The company sits at a great intersection of right timing and customer trends. Customers want more healthy choices at a time when the economy is forcing people to make better value decisions. Plus, it's different."

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A frugal luxury

Few things in this world are more luxurious than strawberries dipped in chocolate, but Farid disagrees with the notion that his company sells a luxury item.

"Everybody perceives our product to be a luxury product, but really it's not," he said. "My philosophy is, I don't celebrate my wife's anniversary any less when there's a recession. I can't tell my parents, 'I'm sorry I couldn't send you anything.' You just get sensible about it, and make sure that it has value. Our product, people relate to it — it feels like flowers, but there's a food factor and a bit of an indulgence factor."

As for the in-store experience, Farid acknowledges that his product is inherently appealing, but stresses the importance of dazzling the customer with its presentation.

"Our objective always is that there has to be a wow effect, from the moment the customer walks into the store," he said. "We don't necessarily need to do much except cut the fruit, the smell permeates and people feel good."

Both in-store and online, the company makes suggestions based on both demographic of the recipient and the occasion for the gift. That's a strategy driven by Farid's intense desire to keep his business as customer-centric as possible.

"A lot of businesses miss treating the customer as a customer," he said. "When you walk into your store, go in as if you're a customer, and look at what the customer sees. That's who you're selling to. If you're always there to make the donuts rather than enjoy the donuts, you're going to have a problem."