Consumers show retailers the love for Valentine’s Day
After the dry month of January, retailers once again have holidays they can look forward to. This month, it's Valentine's Day, and Americans are looking to spoil their friends, family and other loved ones with gifts in celebration of the holiday.
A recent report conducted by the National Retail Federation and BIGinsight found the average consumer will spend $126.03 on Valentine's Day gifts, up 8.5 percent over the $116.21 they doled out last year. Despite the relative uneasiness of the economy, Valentine's Day 2012 will be the biggest one in the past decade in terms of consumer spending, with budgets expected to exceed $17 billion.
"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," said NRF president and CEO Matthew Shay. "Anticipating high foot traffic in the coming weeks, retailers have replenished their inventories."
Men tend to spend the most on Valentine's Day presents, with the average male expected to pay for more than $168.74 worth of clothing, jewelry, greeting cards and other related merchandise – nearly twice as much as the $85.76 the average woman will spend. Across the broader consumer base, couples are anticipated to spend $74.12 on their significant other, $25.25 on their children or parents and $6.92 on friends.
"Celebrated by children who give Valentines to their teachers and classmates, family members who make sure to send greeting cards across the miles and couples who wish to show their appreciation for each other, Valentine's Day means more than what's simply on the surface," said Pam Goodfellow, consumer insights director at BIGinsight.
When shopping for these gifts, discount retail stores will be the go-to place: 37 percent plan to purchase their Valentine's Day gifts from brands of this variety. Meanwhile, 33.6 percent will go to department stores, 19.3 percent will shop online and 20.2 percent will hit specialty stores. Floral shops, jewelry stores and clothing stores were also popular shopping destinations.
Valentine's Day will offer a breath of fresh air, with many retailers not anticipating strong sales until later this spring. According to a separate NRF report, container shipments will remain flat until spring, suggesting retailers aren't expecting big sales until then.
