May is always a big month at 1-800-Flowers.com due to Mother’s Day, but this year the company made bigger news, naming a former executive at The Home Depot as CEO and ending the long run of the brothers McCann at the helm.
The Jericho-based company, which has long since expanded far beyond flowers, said May 7 Adolfo Villagomez would be named chief executive officer, as of Monday, succeeding Jim McCann, who will remain executive chairman and be “actively involved” in the company.
The move came as the company’s sales began to slip and it talked of positioning itself more closely to customers who only seek its services for occasions, a double-edged sword since it prevents frequent sales.
“His appointment marks an exciting and historic new chapter for 1-800-Flowers.com as we shape the next generation of leadership,” Jim McCann said in a written statement.
McCann noted that Villagomez is “the first person outside the McCann family to take on this role,” praising him for his “business acumen” and “deep passion and a genuine commitment to partnership with myself and our leadership team.”
Villagomez most recently served as CEO of Progress Residential, what 1-800-Flowers.com called “the largest private owner and operator of single-family rentals in over 40 U.S. markets.”
Villagomez said he is happy to take the helm at an “iconic brand” and usher in a “transformational new era for the company” as they seek to “grow the business dramatically in the years ahead.”
“What Jim McCann has built is nothing short of extraordinary: one of few companies that have the privilege to be part of the most important moments in consumers’ lives,” Villagomez said on LinkedIn.
1-800-Flowers.com has grown into a digital powerhouse, in part by acquiring companies and brands in the online gifting space. If it was born in blooms, the business has branched out to become a giant in the online gifting space.
It today also operates 1-800-Baskets.com, CardIsle, Cheryl’s Cookies, Harry & David, PersonalizationMall.com, Shari’s Berries, FruitBouquets.com and Things Remembered.
And it also operates Moose Munch, The Popcorn Factory, Wolferman’s Bakery, Vital Choice, Simply Chocolate, Scharffen Berger and BloomNet.
But sales recently slipped, as the company suffered a $178.2 million third-quarter net loss on revenues that tumbled 12.6% to $331.5 million, which the company attributed “to a decline in consumer demand.”
“While we are deeply disappointed by the quarterly results, we are steadfast in our commitment to turning this underperformance around,” Jim McCann said after reporting the results. “Adolfo’s leadership and vision will be instrumental in transforming our company and ensuring we continue to innovate and connect with our customers on a deeper level.”
Prior to serving as CEO of Progress Residential, Villagomez served as president of The Home Depot’s online businesses and as its chief marketing officer for U.S. Retail, responsible for overseeing all digital activities including homedepot.com.
Under his leadership, homedepot.com’s ecommerce operations topped $20 billion in sales in 2021.
Prior to working in industry, Villagomez was a partner at McKinsey & Company, where he led its North America Marketing and Sales Practice.
He holds a Master’s Degree in Business Administration from the Yale School of Management, as well as a Bachelor’s Degree in Chemical Engineering from the Universidad Nacional Autónoma de México.
1-800-Flowers.com said its executive search was conducted in partnership with Kevin O’Neill of Acertitude, a global executive search firm and leadership consultancy.
The company also touted what they called their “Celebrations Wave” marketing strategy that would seek to make more regular connections with friends and family more fun and accessible, provide affordable greeting card options, notifications and reminders and broaden price points.
They also want to use AI-driven recommendations, predictive analytics, and content to increase customer demand along with loyalty programs to boost sales.
Although 1-800-Flowers today is a well-known online retailer, brothers Jim and Chris McCann grew it out of a single flower shop on Manhattan’s East Side.
When Jim was 24 and Chris was 15, Jim bought a flower shop in Manhattan and Chris went to work with him.
They embraced 800 phone numbers and e-commerce and after 9/11 when advertising all but vanished, marketed their company on a large scale, gaining recognition and market share at a time when others retreated.
Jim McCann, whose brother Kevin is developmentally disabled, also is heavily involved in philanthropy and helping individuals with these disabilities.
He is founder and chairman of Smile Farms Inc., a 501c3 nonprofit established in 2015 to provide “meaningful work opportunities for people with disabilities.”
He also serves as chairman of Worth Media Group, which honors organizations and leaders who are using their influence and success to have a positive impact on society.
And he serves on private and not-for-profit boards and is vice chairman and lead independent director for International Game Technology.
