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British buying flowers, plants despite Brexit

British consumers are still buying the same quantities of flowers and plants two months after the result of the UK referendum as before it. The transient dip that appeared immediately after 23 June 2016 has now completely vanished.

Royal FloraHolland has been measuring the consequences of the UK referendum on consumer spending since the result. The results reveal that no major changes are evident yet. The buyers at Royal FloraHolland purchase in exactly the same way, even those serving the British market. It is possible that in individual cases there may have been changes that were not noted during the Royal FloraHolland measurements.

Flowers and plants are primarily sold in supermarkets in the UK. No changes have been found in the displays at Tesco, Asda, Aldi and Lidl compared to the same period last year. The supermarkets are still selling the same varieties and quantities of flowers and plants.

Influence of depreciation

The depreciation of the British pound remains an important factor. British flower sellers are maintaining the same sales price despite their more expensive purchase price. This prevents a drop in sales, but at the expense of their own profit margins. In time, this approach will come under pressure.

The VGB [Association of Wholesalers in Flower Nursery Products] recently published a statement that the export market is stagnating in connection with the depreciation of the pound. The branch organisation based its assessment on export figures (Floridata). Royal FloraHolland is closely following these developments, but has not found this reflected in the figures from consumer spending.



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