1-800-Flowers Brightens Recession With Gift Baskets, Technology

Thirty-three years ago, 1-800-Flowers revolutionized the flower delivery business by offering a central point of contact for nationwide flower delivery. Previously, consumers had to visit local flower merchants, although they could arrange for flowers to be delivered across the country via FTD, a network of florists established a hundred years ago.

Today, less than 20 percent of orders come in via telephone. In an effort to capitalize on the sales potential of the Internet, 1-800-Flowers reinvented itself as 1-800-Flowers.com.

The flower delivery industry is largely driven by a few holidays -- primarily Mother's Day and Valentine's Day. So 1-800-Flowers.com is reinventing itself again. This time, the company is spinning off a new brand, 1-800-Baskets.com, in an effort to diversify its business into the lucrative $16 billion gift basket industry.Continue reading...