Valentine's Day Sales to Set New Records:
People are planning to lavish attention on their loved ones this Valentine's Day, although they won't be spending much more than last year. In 2013, Valentine's Day is estimated to contribute around $18.6 billion to the economy, according to the National Retail Federation. This is still higher than the $17.6 billion they spent on Valentine's Day 2012 and the highest since the NRF began surveying shoppers ten years ago. However, this is just a 5.7% increase, lower than the 8.6% increase in spending between 2011-2012.
How Much Do People Plan to Spend on Valentine's Day?:
People surveyed said they would spend more than in 2012 -- on average, $130.97 each, compared to $126.03 last year. As usual, men planned to spend more than women: $175.61 per guy v.s. $88.78 per gal. As you might guess, those complacent married folks spend less, about $73.75 per spouse, down from the $74.12 they spent last year.
What Do Lovers Buy on Valentine's Day?:
Most people said they would spend less on big-ticket items, instead sharing the love with more people by buying smaller gifts. Only one in five (19.7%) said they would buy the traditional romantic gift of jewelry. However, this is the highest percent in history. Although not as many people buy jewelry, they will wind up spending the most -- a healthy $4.4 billion across the country, up from $4.1 billion in 2012.
The most popular purchase (51%) is the traditional candy, with lovers spending $1.6 billion in total. More than a third plan to buy flowers, spending $1.9 billion nationwide. Many preferred to buy more practical gifts -- $1.6 billion will be spent on sweaters, winter accessories and other clothing. The least popular purchase is gift cards. Only 15% will buy this least-romantic gift, up from 13.3% in 2012. Total spent will be $1.5 billion.
Where Do They Shop?:
More people are heading to discount stores this year (39.6%) than last year (37.9%). Fewer will shop at department stores, with visits falling to 33.2% vs 33.6% last year. Instead, they will go to a variety of stores, no doubt looking for bargains: specialty stores (22.9%), florists (19.6%), jewelry stores (11.2%) and specialty apparel stores (7.5%).
As they did during the Black Friday holiday weekend, a growing number of shoppers will head for their computers. More than 25% will go online, compared to 19.3% last year and a new record.
Mobile Devices on the Upswing:
Just like Cyber Monday 2012, shoppers are increasing their use of tablets and smartphones to make sharing the love a little more convenient. Nearly half of all tablet owners (46.9%) will research products, prices, and retailer information, redeem coupons and purchase products with their device. Meanwhile, 40.7% of smartphone users will do the same while they are on-the-go. (Source: National Retail Federation, Cautious Consumers Keep Cupid at Bay This Year, January 31, 2013)
As BIGinsight Consumer Insights Director Pam Goodfellow concludes, “The mantra ‘it’s the thought that counts,’ might be most applicable for holidays like Valentine’s Day, and there’s no question that this year’s budget-conscious gift givers will keep this in mind while out looking for the perfect gift.” Just like the sales on Black Friday, retailers have stocked the shelves with deals in anticipation of value-conscious shoppers. (Updated February 5, 2013)
