Valentine's Day Sales to Set New Records:
People are planning to lavish attention on their loved ones this Valentine's Day, thanks to optimism buoyed by strong job growth. In 2012, Valentine's Day is estimated to contribute around $17.6 billion to the economy, according to the National Retail Federation. This is 8.6% higher than Valentine's Day 2011 and the highest since the NRF began surveying shoppers ten years ago.
How Much Do People Plan to Spend on Valentine's Day?:
People surveyed said they would spend more than in 2011 -- on average, $126.03 each, compared to $116.21 last year. As usual, men planned to spend more than women: $168.74 per guy v.s. $85.76 per gal. As you might guess, those complacent married folks spend less, about $74.12 per spouse. At least it's more than last year, when they spent $68.98 each.
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 (18.9%) 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 $4.1 billion across the country, up from $3.5 billion in 2011.
The most popular purchase is the traditional cards and candy, with more half getting one or the other, and spending $1.5 billion in total. More than a third plan to buy flowers, spending $1.8 billion nationwide. The same percent plan to take their loved one out to dinner, spending a bit more at $3.5 billion. Many preferred to buy more practical gifts -- $1.4 billion will be spent on sweaters, winter accessories and other clothing. The least popular purchase is gift cards. Only 13.3% will buy this least-romantic gift, up from 12.6% in 2011. Total spent will be a mere $1.1 billion.
Where Do They Shop?:
Since people aren't as worried about the economy, they aren't heading to discount stores as much as in the past -- only 37% of shoppers this year vs. 40% last year. Department stores are seeing a boost, receiving visits from 33.6% of shoppers, up from 30% last year. Other stores will see about the same percentage of shoppers as in the past: specialty stores (20%), florists (17.8%), jewelry stores (10.6%) and specialty apparel stores (6.6%).
As they did during the Black Friday holiday weekend, a growing number of shoppers will head for their computers. Nearly 20% of Valentine's Day shoppers plan to shop online, compared to 18.3% in 2011.
Mobile Devices on the Upswing:
Just like Cyber Monday 2011, shoppers are increasing their use of tablets and smartphones to make sharing the love a little more convenient. More than half of all tablet owners (53.8%) will research products, prices, and retailer information, redeem coupons and purchase products with their tablet. Just over 40.4% of smartphone users will do the same while they are on-the-go. (Source: National Retail Federation, Americans to Pull Out All Stops This Valentine's Day, February 1, 2012)
As NRF President and CEO Matthew Shay concludes, “As one of the biggest gift-giving holidays of the year, it’s encouraging that consumers are still exhibiting the desire to spend on discretionary gift items, a strong indication our economy continues to move in the right direction.” He adds that retailers have stocked the shelves in anticipation of optimistic shoppers. And, just like the sales on Black Friday, they will, “...entice eager shoppers with great deals on everything from special menu items at restaurants to clothing to flowers and, of course, chocolates.” (Updated February 8, 2012)
