Fewer consumers celebrating Valentine’s Day
Those who do are spending more
Americans are expected to spend a record amount on Valentine’s Day this year despite a years-long decrease in the percentage of people celebrating the holiday, according to the annual survey released today by the National Retail Federation and Prosper Insights & Analytics.
“The vast majority of Valentine’s Day dollars are still spent on significant others, but there’s a big increase this year in consumers spreading the love to children, parents, friends and coworkers,” NRF President and CEO Matthew Shay said. “Those who are participating are spending more than ever and that could be the result of the strong economy. With employment and income growing, consumers appear to be expanding the scope of who qualifies for a card or a box of candy.”
Those surveyed said they would spend an average 161.96 dollar. That’s up 13 percent from last year’s 143.56 dollar and easily tops the previous record of 146.84 dollar set in 2016. Total spending is expected to be 20.7 billion dollar, which is an increase of 6 percent over last year’s 19.6 billion dollarand breaks the previous record of 19.7 billion dollar, also set in 2016.
The spending increases come even though only 51 percent of Americans plan to celebrate the holiday, down from 55 percent last year and a high of 63 percent in 2007. It is unclear why the number of consumers celebrating has trended downward over the past 12 years, but spending, while varying with the economy, has generally trended up. The lowest spending during the period was 102.50 dollar in 2009 during the Great Recession.
Of the 18.40 dollar increase in average spending, only 4.26 dollar comes from spending on spouses and significant others, which is expected to total 93.24 dollar. Consumers said they would spend 29.87 dollar on other family members, up 4.58 dollar; 9.78 dollar on friends, up 2.59 dollar; 8.63 dollar on children’s classmates or teachers, up 1.37 dollar; 7.78 dollar on co-workers, up 2.99 dollar; 6.94 dollar on pets, up 1.44 dollar and 5.72 dollar on others, up 1.17 dollar.
As in each year of the survey, men are the biggest spenders at 229.54 dollar, up 20 percent from last year. That’s more than double the 97.77 dollar women said they would spend, which is down 1 percent, and is within the survey’s margin of error.
Among age groups, those 35-44 are the biggest Valentine spenders at 279.14 dollar, followed by those 25-34 at 239.07 dollar. Both groups typically have more people to buy for including children and children’s classmates or teachers.
Gifts for pets continue to be popular, purchased by 20 percent. Pet spending is expected to total 886 million dollar, up 519 million dollar since NRF first asked in 2008.
Those celebrating plan to spend 3.9 billion dollar on jewelry (given by 18 percent), 3.5 billion dollar on an evening out (34 percent), 2.1 billion dollar on clothing (18 percent), 1.9 billion dollar on flowers (35 percent), 1.8 billion dollar on candy (52 percent), 1.3 billion dollar on gift cards (15 percent) and 933 million dollar on greeting cards (44 percent). Gifts of experience such as tickets to an event or a trip to a spa are wanted by 40 percent and planned to be given by 25 percent.
Department stores are the most popular Valentine’s Day shopping destination, visited by 35 percent of shoppers, followed by discount stores (32 percent), online (27 percent), specialty stores (18 percent) florists (16 percent), small or local businesses (14 percent), jewelry stores and specialty clothing stores (each 9 percent).
Even among those who don’t plan to celebrate Valentine’s Day as such, 11 percent plan to treat themselves to gifts like clothing or jewelry and 9 percent plan to get together with other single friends or family.
“Valentine’s Day means different things for different people,” Prosper Vice President of Strategy Phil Rist said. “Whether it’s a day of romance or one of making sure their children have enough cards in their backpacks for each of their classmates, it’s an important day for those who choose to participate.”
The survey of 7,384 adults 18 and older was conducted January 2-9 and has a margin of error of plus or minus 1.2 percentage points.
channels: consumer demand, seasonal business
