Americans are expected to set another record for Valentine’s Day spending this year, according to the annual survey released recently by the US National Retail Federation (NRF) and Prosper Insights & Analytics. Survey respondents celebrating the holiday said they plan to spend an average $196.31, up 21 per cent over last year’s figure of $161.96.
“Valentine’s Day is a sentimental tradition, but gift-giving can be driven by the economy,” NRF president Matthew Shay said.Americans are expected to set another record for Valentine's Day spending this year, according to the annual survey released recently by the US National Retail Federation (NRF) and Prosper Insights & Analytics. Survey respondents celebrating the holiday said they plan to spend an average $196.31, up 21 per cent over last year's figure of $161.96.#
“Consumers spent freely during the 2019 winter holidays and they appear ready to do the same in the new year. The same strong employment numbers and higher wages that boosted holiday sales should make it easier to spend a little extra to say ‘I love you’ this year and to spread the gift-giving beyond just your significant other,” he said in a statement.
Spending is expected to total $27.4 billion, up 32 per cent from last year’s record $20.7 billion.
The unusually large increase in average spending appears to be due to strong consumer finances and a continued trend of consumers buying more gifts, cards, candy and flowers for friends, family, co-workers and pets. The increase in total spending comes as the number of people celebrating Valentine’s Day returned to 55 per cent, about average for the past decade, after a dip to 51 per cent last year.
The biggest share of Valentine’s spending still goes to spouses and significant others at 52 per cent of the total, or an average $101.21 this year, up from $93.24 in 2019. But their share of the spending is down from 61 per cent a decade ago.
Consumers say they will spend an average $30.19 on family members other than spouses, up slightly from $29.87 last year; $14.69 on friends, up from $9.78; $14.45 on children’s classmates and teachers, up from $8.63; $12.96 on co-workers, up from $7.78; $12.21 on pets, up from $6.94, and $10.60 on others, up from $5.72.
Twenty-seven per cent say they will buy Valentine’s gifts for their pets, the highest figure in the history of the survey and up from 17 per cent in 2010 for a total $1.7 billion.
Department stores are the most popular Valentine’s Day shopping destination, visited by 36 per cent, with discount stores and online tied at 32 per cent, specialty stores at 19 per cent, florists at 17 per cent, local small business at 15 per cent and clothing stores and jewellery shops tied at 11 per cent.
The Valentine’s Day survey results follow a 4.1 per cent year-over-year increase in 2019 holiday sales, nearly double the 2.1 per cent increase in 2018 holiday sales.
ALCHEMPro News Desk (DS)
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