Gone are the days that Valentine’s Day is labeled as a Hallmark Holiday. Valentine’s can be considered an economic stimulus that helps to boost sales in between Christmas and Easter. According to Reuters News Agency, for Valentine’s Day 2011, the average American couple will spend $189, which is three times more than what singles generally spend on an average date ($67). Cupid has consumerism working for the economy, but not everyone buys into spending to show their love.
Valentine’s Day Spending
According to estimates from the National Retail Foundation, the average person will spend $116.21 on Valentine's Day merchandise this year, this figure is up almost 13% percent over last year's $103.00. Overall, this will bring total Valentine’s Day spending to about $15.7 billion.
Florists make up to 40 percent of their annual income in February sales so for this industry, Valentine’s Day spending is vital.
Greeting cards will be the most popular gift option at over 50 percent, and jewelry is expected to be a popular gift to give with almost 20 percent of Valentine’s shoppers.
The survey also found that overall spending is expected to be up this year. Consumers will fork over $3.5 billion on jewelry this Valentine’s Day, up from 2010’s estimated $3 billion. Clothing ($1.6 billion vs. $1.5 billion in 2010) and dining out ($3.4 billion vs. $3.3 billion in 2010) are anticipated to be popular choices.
No changes are expected on who will spend more; men will spend the most on Valentine’s Day gifts. The average man is anticipated to spend $158.71, more than double what the average woman will spend.
According to Reuters, young professionals plan to spend $255 for Valentine’s with their significant other.
Reuters quoted Mona Hamouly, public affairs manager with American Express, “In January we asked the entire population if they felt optimistic or frugal or frightened as they were going into this new year, and what we’ve seen is young professionals definitely feel a bit more optimistic about the economy. Perhaps that’s what drives them to be willing to spend a little bit more.”
Valentine’s Day Around the World
Profits will soar in many economies worldwide. Valentine’s Day around the world will boost sales in many countries:
- In New South Wales, Australia, the state government anticipates a $300 million boost to their economy.
- A study by the Associated Chambers of Commerce and Industry of India says Rs.12,000 ($2.6 billion) will be spent.
- In Great Britain Valentine’s Day will generate about £28 million (approx. $45 million) in sales.
Valentine’s Day – Just another Day?
Reuters reported that 12 percent of those surveyed said spending on Valentine’s Day “is a waste of money.” An online poll at Reuters asks viewers what they plan to do. According to results at 6:30 pm on February 13, 2011, 49% of those who voted said that they have no special plans as it is just another day. Twenty-six percent said they will have a quiet night at home with their special someone, 14% will dine out and take in a movie and only 11% who responded said they are exchanging Valentine’s Day gifts.
Sources:
National Retail Federation: Love is in the Air (accessed February 13, 2011).
Reuters, February 9, 2011. Valentine’s Day shoppers plan to splurge (accessed February 13, 2011).
HeraldSun.com, February 14, 2011. Valentines Day brings $300 million to NSW economy (accessed February 13, 2011).
Economic Times India, February 13, 2011. Love sells – Valentine's Week is Rs.12,000 cr business (accessed February 13, 2011).
Telegraph, February 13, 2011. Hallowe'en now bigger than Valentine's Day (accessed February 13, 2011).
Karen Stephenson - Karen has written for several newspapers and print media in addition to many online publications. She holds a B.A. in English and an ...
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