If you were shopping for Christmas swag in hopes of scoring big post-season discounts, you might have taken notice.
In almost a blink of an eye, retailers moved quickly in preparation for Valentine’s Day. By the end of the first week of the new year, inventory on the shelves had magically transformed from tinsel and tree lights to pink and red hearts.
Valentine’s Day is a BIG deal in the United States. From all walks of retail, customers are faced with an endless array of love-inspired offerings to suit every taste and budget.
Each year, Valentine’s Day spending in the U.S. for sweethearts, kids, friends, coworkers, and even the family pet translates into billions of dollars. BILLIONS.
According to the National Retail Federation, last year’s Valentine’s Day spending contributed roughly $19.6 billion to the U.S. economy. Those numbers were the second-highest since 2013; topped only by a record $19.7 billion spent in 2016. Given a stable economy, Valentine’s Day 2019 spending could easily match or exceed $20 billion.
There’s nothing like the blush of young love. Whether it’s to impress a mate or to woo a potential one, 60 percent of adults between the ages of 18 and 24 and 67 percent of those between the ages of 25 and 34 celebrate Valentine’s Day with gusto, spending more than the older folks. In fact, just half of those between ages 55 and 64 and only 44.7 percent of those 65 and older celebrate Valentine’s Day.
Most Valentine’s Day gift purchases are for a spouse or significant other. The other top gifting categories include family members, kids’ classmates and teachers, coworkers, and pets.
The $19.6 billion spent in 2018 translated into an average of $143.56 per person. All Valentine’s Day gifting is not created equal, however. Men spend almost twice as much as women do. On average, guys spend $196.39 on their beloved, while the ladies spend only $99.87.
Where Are They Buying it?
As the first gift-centric holiday of the new year, big spending on Valentine’s Day provides a hefty boost to the economy. Despite the ease and convenience of the Internet, only 29 percent of shoppers order Valentine’s Day gifts online.
For Valentine’s Day in particular, shoppers seem to prefer the in-store “brick and mortar” approach to gift buying: 35 percent visit department stores, 32 percent shop at discount stores, 19 percent prefer browsing specialty stores, and 17 percent will stop by the florist’s shop on their way home from work. Even if it means waiting in a line that circles the building.
What Are They Buying?
The top five categories of Valentine’s Day gifts are candy, greeting cards, dining out, flowers, and jewelry.
More than 80 percent of consumers love their chocolate and it’s not surprising that candy is the No. 1 Valentine’s Day gift of choice.
The great thing about candy is that it can be purchased practically anywhere, at any price point – from grocery stores to high quality confectioneries – yet it’s still inexpensive when compared to flowers, fine dining, or jewelry.
For the past six years, sisters Caitlin Lyon and Michelle Novosel Pennell have owned and operated Pizzelle’s Confections at Lowe Mill.
“Valentine’s Day is literally a line of guys, lined up at the door,” said Lyon. “It’s also the one time of year where we can pre-box a variety of candy and it will sell.”
Pennell said, “Valentine’s Day is one week of craziness! We hope that people will come out and enjoy.”
Valentine’s Day cards are still popular and represent close to 45 percent of sales. Greeting card purchases include fancy romantic cards for one’s sweetie, as well as those packs of cards parents often buy for their kids’ teachers and classmates.
Despite being a high-volume item, Valentine’s Day cards are very inexpensive, thus generating a mere $1 billion in revenue.
A Night on the Town
Valentine’s Day dining translates into 35 percent of purchases and approximately $4 billion in generated revenue.
Tastes and budgets may vary, but most couples will spend a romantic evening out on Valentine’s Day, whether it be savoring fine wine and a fancy meal at an upscale restaurant or a sit-down meal without the kids at a fast food establishment.
With close to $2 billion in revenue generated from domestically cut flowers, bouquets represent 38 percent of Valentine’s Day sales in the U.S.
“Valentine’s day is probably the busiest single day of the year for us. Men buying for their wives or girlfriends; if there’s a child, they buy a valentine for them, too,” said Karen Bowers, longtime sales clerk at Albert’s Florist in Huntsville. “People often wait until the last minute, so it gets pretty hectic.”
Co-worker Carol Moore said, “The phones ring off the hook, there’s a line out to the street. If Valentine’s Day falls on a weekend, it’s even busier.”
Despite representing only 19 percent of Valentine’s Day purchases, jewelry generated nearly $5 billion in revenue in 2018.
“Valentine’s Day is a big day for us,” says Karen Boehme, co-owner of Meyer and Lee Fine Jewelry. “But it’s not an anniversary gift purchase, where thousands might be spent on a special piece of jewelry, like a diamond necklace or ring. It’s usually less expensive, like a pair of earrings, a bracelet, or a necklace.”
Jewelry remains mostly a traditional, gender-based purchase –a man buying jewelry for his lady love.
“Men will often tell us that their wife doesn’t like jewelry,” Boehme said. “This is where we might suggest more traditional ‘staples,’ pieces that have timeless appeal and can be worn as part of an everyday look or for special occasions, such as a strand of pearls or diamond studs.”
To dispel the bad rap of husbands being last minute shoppers, she said there is a strategy to their purchase habits.
“Wives often manage the household budget so, to avoid suspicion, men will come in beforehand to place the order, then make the actual purchase closer to the date.”
Don’t Forget Fifi or Fido
In 2018, Valentine’s Day statistics show that man’s best friend is getting even more love over the past decade. According to a recent NRF survey, about 20 percent of US consumers plan to give their pets a Valentine’s Day gift.
It’s no secret that pets are already a big business 364 days of the year. Add $6 million in heart-shaped squeakies and dog treat sales on Feb. 14 and that’s a significant heart-shaped boost to the economy.