Seasonal programs like Valentine’s day drive big profits for retailers and restaurants.
Valentine’s Day spending is expected to top 20 billion this year! The average spend is also up from $143.56 to $161.96 (a 13% increase from last year). And while most Americans still spend the majority of their Valentine’s Day budget on a significant other, the National Retail Federation (NRF) observes a “big increase this year in consumers spreading the love to children, pets, friends and coworkers.”
“Americans are looking forward to pampering and indulging their loved ones with flowers, candy, dinner and all of the other Valentine’s Day stops. With the holidays behind them and the winter months dragging along, consumers are looking for something to celebrate this time of year.”
NRF President and CEO Matthew Shay
Retailer James Allen conducted a study and found that 43% of millennials chose Valentine’s Day as their number one choice to propose or be proposed to. So it comes as no surprise that jewellery spend will be the front runner at an estimated $4.7 billion.
$3.7 billion will be spent on a night out and another $2 billion on flowers. While consumers plan to spend an average of $88.98 on their significant other, they also plan on spending:
- $25.29 on their children
- $7.26 on children’s classmates/teachers
- $7.19 on friends
- $5.50 on pets
- $4.79 on co-workers
Retailers should consider a merchandising display of inexpensive Valentine’s themed gifts that can be easily gifted to the categories listed above.
While 40% of consumers would love to receive a gift of an experience, only 25% of people plan on purchasing one. Giving chocolate and candy was up 5% in 2019 with an estimated 55% of consumers giving a chocolate or candy gift.
The first ever box of Valentine’s Chocolates was created by Richard Cadbury in 1868.
According to Hallmark, 145 million cards are exchanged on Valentine’s Day. This estimate does not include Valentines exchanged in children’s classrooms.
Brick and mortar stores are essential during the Valentine’s Day shopping season. Department stores remain the most popular destination with 35% of shoppers visiting, and 32% of shoppers plan to spend their Valentine’s Day dollars at discount stores. Only 27% of shoppers are expected to shop online (down from 29% in 2019).
With $20.7 billion up for grabs, are your stores ready? Are Valentine’s Day marketing and merchandising initiatives executed in full, across all your locations? Relying on paper, Excel and email is slow, error-prone and ultimately…expensive.
Not sure how to check in on your merchandising? Use this merchandising checklist, and follow up with 7 Visual Merchandising Techniques to Increase Sales.
Compliant IA is a platform for faster store execution. Checklists, tasks, photos, and secure communication to help you roll-out your merchandising programs and operating procedures. Ensure your programs are executed on time, in full, in every store.
About the author
Jacqueline Young-Sterling is the Director of Customer Experience at Compliant IA. She regularly contributes or gets quoted in publications such as the Shopify Blog, Business News Daily, Independent Retail, and the Vend Blog as a retail expert. Compliant IA is the leading retail audit platform. Field managers and stores use the app to complete smart checklists at store-level, take photos, and assign tasks with automated reminders.