Valentine’s Day Makes Retailers Swoon

Considering a career in business? Browse your options

Holidays are big business and Valentine’s Day is one of the biggest. Just ask the retail industry. It’s not like we wouldn’t be compelled to show our love through token gifts without them, but holidays give consumers that crucial sense of urgency, a deadline to show your love. And by show, we mean go out and buy something because it’s really not the thought that counts.

Now that Americans have some extra stimulus package cash coming, retailers are hoping you’ll feel flush. Consumers this year are expected to demonstrate their love in a bigger way than ever before. According to the National Retail Federation’s 2008 Valentine’s Day Consumer Intentions and Actions Survey, conducted by BIGresearch, average consumers expect to spend $122.98 on Valentine’s Day, up from $119.67 last year. This adds up to over $17 billion spent on Valentine’s Day. And this is just one of the many holidays American’s traditionally celebrate.

Success In The Cards
The old standbys – candy, flowers and jewelry – are making way for fresher options like gift cards an nights out. But cards are still the top choice, accounting for 60% of Valentine’s Day spending. At just a few dollars a card, that’s a lot of paper. In a 2006 study by the International Mass Retail Association estimated the number of valentines exchanged in the U.S at over a billion.

The number of cards given at Valentine’s Day is second only to Christmas. Because cards are such a big piece of the business, Hallmark wants to make sure you find just the right thing to say. That’s why they offer over 2,000 Valentine’s card designs.

Getting Women To Spend
Historically, men have spent more on Valentine’s Day. This year’s predicted average is made up of and average amount spent of $163.37 for men and $84.72 for women. But Valentine’s Day is not just for lovers. Women will likely by the cards children give to classmates. Additionally greeting card companies are creating more and more cards specific to children and other relatives.

Then there are our new babies. Blame it on those cute mini-dogs in the arms of all the socialites, or give credit to savvy marketers, but pets are hot. When it comes to expressing sentiment on holidays, pets are no exception. Consumers are expected to spend $367 million on pet valentines this year.

Industries Most Affected
Restaurants – Valentine’s Day beats out every other day of the year except for Mother’s Day. Over 45% of Americans plan to dine out, either as a couple or with the whole family.

Candy – Walk down the candy aisle at your local grocery store and you’ll see how sweets suppliers are cashing in on every holiday with specialized packaging, including holiday specific wrap and bundling products together in a basket-like offering.

Flowers – It is easier than ever to make sure you never forget a holiday. And convenient to order online. To help, sites like BigDates.com and American Greetings ask for key relationships and important dates and then send reminders for every possible gift giving opportunity.

“Valentine’s Day is a great time to get creative with gift options,” said National Retail Federation President and CEO Tracy Mullin. “Most people agree that it’s the thought that counts, but shelves will also be filled with traditional gifts for those who want to celebrate the old-fashioned way.”

Yeah right, the thought. That’ll make your girlfriend happy. Play it safe and buy the card.