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TheStreet Open House

1-800-Flowers: Retail Is Detail

Stocks in this article: FLWS CBS

NEW YORK ( TheStreet) -- When 1-800-Flowers (FLWS - Get Report) President and COO Chris McCann appeared on the season finale of Undercover Boss, his first job was to make a floral arrangement. Although his inner artist remained buried throughout the task, McCann learned an important lesson about the business from the woman who desperately tried to "train" him: They need to step it up a notch.

In that episode of the CBS (CBS - Get Report) reality show, McCann found out from Pauline, his co-worker at a New Jersey store, that their floral designs have not changed for years. Pauline said she was bored doing the same floral arrangements over and over again, and frustrated that the company wasn't looking into new trends in floral art.

Chris McCann

What McCann learned from his Undercover Boss experience has now become a key focus of 1-800-Flowers' holiday gift selections. This year, the company is rolling out unique holiday floral arrangements and centerpieces, and expanding its range of gift baskets. Pauline, who has since been brought to corporate headquarters to work on production and development strategies, has one of her new designs included in the upcoming collection.

"We are pleased with our customers' positive reactions to our focus on creating truly original gifts," McCann said in an interview with TheStreet. "All are designed to help our customers connect and express themselves with the important people in their lives."

This holiday season, as competition heats up among florists and gift shops, McCann said 1-800-Flowers' edge -- aside from a uniquely broad selection of thoughtful gifts -- is offering a multichannel shopping experience. The company's products are sold in retail stores, online, via mobile devices and through leading social networking sites.

Currently, 1-800-Flowers has 150 franchised and company-owned retail stores, 2,500 domestic affiliates and 1,300 overseas affiliates. While its key business is selling floral arrangements, the company has also acquired other brands to expand its gift offerings, such as Fannie May, which produces chocolates; Cheryl & Co., which makes baked goods; the Popcorn Factory, which offers popcorn and other snacks in designer tins; and WineTasting.com, which offers wine gifts.

"During my Undercover Boss experience, I was reminded that retail is detail," McCann said. "We should build relationships first and then do business second." Realizing the importance of having a relationship with every employee working for its brands, 1-800-Flowers now has a company-wide magazine, Florology, providing employees with information on industry trends and training programs available to them.

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