Get ready for Valentine’s Day because consumers are planning to increase their spending to nearly $26 billion this year, according to a survey by the National Retail Federation and Prosper Insights & Analytics. This marks one of the highest spending years on record, with consumers expected to spend an average of $192.80. While spending on significant others and family members remains consistent, many consumers are also showing appreciation for other meaningful relationships, resulting in an increase in spending on gifts for pets, friends, co-workers, and classmates. The top shopping destinations for Valentine’s Day gifts include online stores, department stores, discount stores, and specialty stores. So whether you’re planning to shower your loved ones with candy, greeting cards, flowers, jewelry, or a special evening out, retailers are ready to help you celebrate with affordable prices and memorable gifts.
Record Valentine’s Day Spending Forecast
Valentine’s Day is not only a time for expressing love and affection, but it has also become a significant economic event. The National Retail Federation (NRF) and Prosper Insights & Analytics have released their annual survey, revealing that consumer spending for Valentine’s Day is expected to reach a staggering $25.9 billion this year. This marks an increase from the $23.9 billion spent in 2022, making it one of the highest spending years on record. With the rise in spending, retailers are prepared to offer a range of affordable and memorable gifts to help customers celebrate this special occasion.
Increase in Valentine’s Day consumer spending
Consumers are increasingly embracing the spirit of Valentine’s Day, which is reflected in the rising spending trends. More than half of consumers, approximately 52%, plan to celebrate the holiday this year, contributing to the overall increase in spending. On average, individuals are expected to spend $192.80, an increase from $175.41 in 2022. This figure is the second-highest recorded since NRF and Prosper began tracking Valentine’s Day spending in 2004.
Comparison of forecasted spending to previous years
When comparing this year’s spending forecast to previous years, it becomes evident that consumers are becoming more willing to invest in the celebration of Valentine’s Day. The $25.9 billion spending projection for this year is a significant leap from the $23.9 billion spent in 2022. This growth indicates an increasing societal emphasis on expressing love and appreciation not only to romantic partners but to other meaningful relationships as well.
Exploring Consumer Spending Habits
To gain a better understanding of consumer behavior during Valentine’s Day, it is crucial to delve further into their spending habits and preferences. By examining average spend per person and identifying changes in gift-giving trends, we can gain valuable insights into how consumers approach this holiday.
Average spend per person
Valentine’s Day provides an opportunity for people to demonstrate their love and gratitude through thoughtful gifts. This year, consumers plan to allocate an average of $192.80 for Valentine’s Day-related purchases. This figure represents a $17 increase in per-person spending compared to the previous year. It is worth noting that this increase is not solely attributed to gifts for romantic partners and family members, but also to gifts for pets, friends, co-workers, classmates, and teachers.
Increase in gifts for pets, friends, and co-workers
Valentine’s Day has evolved beyond being solely centered around romantic love. Consumers are increasingly looking to extend their expressions of affection to other important individuals in their lives. This year, a substantial portion of the $17 increase in per-person spending comes from gifts for pets, friends, co-workers, classmates, and teachers. This shift highlights the significance placed on non-romantic relationships during this holiday.
Spending habits of age groups 35-44
Among different age groups, individuals aged 35 to 44 plan to outspend others when it comes to Valentine’s Day gifts and related items. On average, they are expected to allocate $335.71 for these purchases, which is approximately $142.91 more than the average consumer celebrating the holiday. This age group’s willingness to invest more in Valentine’s Day demonstrates their commitment to expressing love and appreciation for their significant others and loved ones.
Preferred Shopping Destinations
When it comes to shopping for Valentine’s Day gifts, consumers have various preferences for where they choose to make their purchases. By examining the most popular shopping destinations, we can gain insights into the preferred channels for consumers during this holiday season.
Popularity of online shopping
With the convenience and accessibility it offers, online shopping has emerged as the top choice for Valentine’s Day gift purchases. Approximately 35% of consumers prefer to shop online for their Valentine’s Day gifts. Online retailers provide a wide selection of products and often offer special promotions and discounts, making it an attractive option for shoppers looking for the perfect gift.
Department store shopping
Department stores remain a popular choice for consumers when it comes to Valentine’s Day gift shopping. Approximately 34% of consumers opt to visit department stores for their gift purchases. These stores provide a vast array of options under one roof, allowing shoppers to explore different gift ideas and find something special for their loved ones.
Discount and specialty store shopping
Discount stores and specialty stores also attract a significant share of Valentine’s Day shoppers, with 31% and 18% of consumers respectively choosing these options. Discount stores offer competitive pricing, making it an appealing choice for budget-conscious shoppers. Specialty stores, on the other hand, cater to specific interests and preferences, allowing shoppers to find unique and personalized gifts.
Most Popular Valentine’s Day Gifts
Valentine’s Day is synonymous with traditional gifts such as candy, greeting cards, and flowers. However, as consumer preferences evolve, other gift categories are gaining popularity. By examining the most popular Valentine’s Day gifts, we can gain insights into the evolving trends in consumer preferences.
Popularity of candy, greeting cards, and flowers
Candy, greeting cards, and flowers continue to be the cornerstone of Valentine’s Day gifts. Approximately 57% of consumers plan to purchase candy, while 40% intend to buy greeting cards. Flowers are also a popular choice, with 37% of consumers opting for a floral gift. These traditional gifts hold sentimental value and are seen as classic symbols of love and affection.
Spending on special evenings out
Valentine’s Day is not just about tangible gifts; it is also an occasion to create special memories. Approximately 32% of consumers plan to go out for a romantic evening to celebrate the holiday. This includes activities such as dining out, going to the movies, or enjoying a special date night. These experiences allow couples to spend quality time together and create lasting memories.
Rise in jewelry purchases
Jewelry has seen a significant increase in popularity as a Valentine’s Day gift. Approximately 21% of consumers plan to purchase jewelry for their loved ones. The enduring appeal of jewelry lies in its ability to serve as a lasting symbol of love and commitment. From classic pieces to personalized designs, jewelry offers a range of options for couples looking to express their affection.
Preference for clothing and gift cards
Clothing and gift cards have also emerged as popular gift choices for Valentine’s Day. Approximately 19% of consumers plan to purchase clothing items, such as apparel or accessories, to surprise their loved ones. Gift cards, which offer flexibility and the freedom to choose desired items, are preferred by 20% of consumers. These options allow recipients to select something they truly desire, ensuring satisfaction with the gift.
Shift towards Gifts of Experience
In recent years, there has been a noticeable shift towards gifting experiences rather than tangible items. This changing trend reflects a desire to create lasting memories and shared moments. By exploring the rise in gifting experiences and the preferences of different demographics, we can gain insights into this evolving aspect of Valentine’s Day.
Rise in gifting experiences
Approximately 32% of consumers plan to give a gift of experience this Valentine’s Day. This represents an increase from 26% in the previous year, signaling a growing desire to create meaningful memories. Experiences such as spa days, cooking classes, concerts, or weekend getaways offer a unique way to celebrate love and show appreciation for a special someone.
Men’s preference for experience gifting
While both men and women embrace the concept of gifting experiences, men are more likely to opt for this type of gift compared to previous years. The shift towards experience gifting aligns with the desire to create shared moments and provide their loved ones with unique and memorable experiences. This trend showcases the evolving preferences of men when it comes to expressing their affection.
Utilizing Sales and Promotions
Sales and promotions play a significant role in shaping consumer behavior during Valentine’s Day. By examining the impact of discounts and the influence of promotions, we can better understand how consumers leverage these factors to make their purchasing decisions.
Consumer reliance on sales and discounts
More than half of consumers, specifically 50%, state that they will take advantage of sales and promotions as they celebrate Valentine’s Day. This indicates that sales and discounts are influential factors in their decision-making process. Consumers are keen to find the best deals and maximize the value of their purchases, making strategic use of sales and discounts to stretch their budgets.
Influence of promotions on Valentine’s Day spending
Promotions and special offers have a significant impact on consumer spending during Valentine’s Day. Retailers often launch exclusive promotions, ranging from free shipping to discounts or bundled deals, to attract customers. These promotions provide an incentive for consumers to make their purchases, enabling them to find affordable and enticing gift options. The influence of promotions is instrumental in shaping consumer behavior and driving overall spending.
Non-Participants Execute Celebratory Actions
While not everyone chooses to celebrate Valentine’s Day, many individuals still take part in activities associated with the holiday. By examining the actions of non-participants, we can gain insight into how they mark the occasion in non-traditional ways.
Percentage of non-participants still marking the occasion
Even among those who do not plan to celebrate Valentine’s Day, a significant portion, approximately 28%, still find ways to acknowledge the holiday. These individuals may choose to give non-Valentine’s gifts, treat themselves to something special, or plan get-togethers or evenings out with single friends and family members. This highlights the pervasiveness of Valentine’s Day and the desire to engage with the festivities in alternative ways.
Non-traditional actions taken by non-celebrators
Non-participants often find creative ways to commemorate Valentine’s Day. Some choose to acknowledge the holiday by giving gifts to friends or family members, demonstrating their affection in a non-romantic context. Others take the opportunity to indulge in self-care or treat themselves to something special, turning the day into a celebration of self-love and appreciation. Additionally, non-celebrators may make plans to spend quality time with loved ones who are not in romantic relationships, fostering a sense of camaraderie and togetherness.
To gather insights into consumer behavior during Valentine’s Day, NRF conducted a survey of 7,616 U.S. adult consumers from January 3 to January 11. This comprehensive survey allows for a detailed examination of spending trends and preferences. It is worth noting that the survey has a margin of error of plus or minus 1.1 percentage points, ensuring a high level of accuracy in the findings.
Details about the consumer survey
The consumer survey conducted by NRF involved a diverse sample of U.S. adult consumers, providing a representative picture of Valentine’s Day spending habits. By gathering data directly from consumers, the survey offers valuable insights into their intentions, preferences, and behaviors surrounding the holiday. This information serves as a reliable benchmark for retailers and marketers seeking to align their strategies with consumer expectations.
Margin of error in the survey
To ensure the accuracy and reliability of the survey results, a margin of error of plus or minus 1.1 percentage points was applied. This margin of error accounts for potential variations that may arise due to sampling and responses within the surveyed population. The margin of error provides a range within which the true values of the population are likely to fall, allowing for robust analysis and interpretation of the survey data.
The National Retail Federation (NRF) is a prominent advocate for the retail industry, representing the people, brands, policies, and ideas that drive its success. With a mission centered on empowering the industry that powers the economy, NRF plays a crucial role in shaping the retail landscape. As the world’s largest retail trade association, NRF supports retailers and their contributions to local communities and global economies.
Role of the National Retail Federation
NRF serves as a leading authority and voice for the retail industry, championing the interests and needs of retailers across the United States. Through its advocacy efforts, NRF works to shape policies and regulations that foster a favorable business environment for retailers. By providing comprehensive research, insights, and resources, NRF equips retailers with the knowledge and tools necessary for success.
NRF’s influence on the retail industry
As a respected industry organization, NRF carries significant influence within the retail sector. By leveraging its expertise and reputation, NRF helps shape industry-wide strategies, advocates for pro-retail policies, and drives initiatives that promote growth and innovation. NRF’s influence extends to conversations surrounding consumer behavior, industry trends, and economic impact, establishing it as a reliable and trusted source of information for retailers and industry stakeholders.
About Prosper Insights & Analytics
Prosper Insights & Analytics is a global leader in consumer intent data, serving the financial services, marketing technology, and retail industries. By integrating economic, behavioral, and attitudinal data, Prosper provides valuable market insights and analytics for understanding consumer behavior. With a focus on predicting future consumer behavior and optimizing marketing efforts, Prosper empowers companies to make data-driven decisions.
Role of Prosper Insights & Analytics
Prosper Insights & Analytics plays a crucial role in providing authoritative market information on U.S. and China consumers. By curating insights and analytics from various data sources, Prosper offers a comprehensive understanding of consumer intent and behavior. This allows companies to identify market trends, optimize marketing strategies, and improve the effectiveness of demand generation campaigns. Prosper’s role in analyzing consumer data contributes to a deeper understanding of consumer behavior across industries.
How Prosper contributes to the understanding of consumer behavior
By integrating diverse datasets, including economic, behavioral, and attitudinal data, Prosper provides a holistic view of consumer behavior. This comprehensive approach enables companies to accurately predict future consumer behavior, anticipate market trends, and align their strategies accordingly. Prosper’s insights and analytics unlock valuable information about consumers’ buying habits, preferences, and motivations, enabling businesses to develop targeted marketing campaigns and deliver personalized experiences.
In conclusion, the forecasted increase in Valentine’s Day consumer spending signifies the significance of this holiday in both personal and economic contexts. Consumers are increasingly embracing the opportunity to express love and appreciation, not only to romantic partners but also to pets, friends, co-workers, and other meaningful individuals in their lives. Online shopping has emerged as the preferred channel for gift purchases, closely followed by department stores, discount stores, and specialty stores. Traditional gifts such as candy, greeting cards, and flowers remain popular, while experiences, jewelry, clothing, and gift cards are also gaining traction. Non-celebrators find alternative ways to mark the occasion, and sales and promotions play a crucial role in influencing consumer spending. By conducting a comprehensive survey and leveraging insights from organizations like NRF and Prosper Insights & Analytics, retailers and marketers can better understand consumer behavior and tailor their strategies to meet evolving expectations.