| money matters |
| Valentine's Spending to Reach $13.70 Billion in 2006 |
Who says you can’t buy love? Certainly not the National Retail Federation, that’s for sure. According to the NRF, retail sales for Valentine’s Day 2006 was expected to reach $13.70 billion dollars.* Yep, you read that correctly. 13.7 BILLION dollars.
If you think the numbers seem a little high, it’s because the NRF’s sales projections go way beyond greeting cards and red roses. In addition to these heartfelt staples, people were expected to shower their loved ones with expensive dinners, gift certificates, jewelry and clothing.
These buying trends are certainly boosted by the post-Christmas, pre-Easter ad blitz that reminds us that love is a many splendored purchase. Yes, love, or the pursuit of love, is big business and the exploitation of it now bleeds into practically every sector of the retail market. The obvious ads tout flowers, jewelers and greeting cards. But when typically nonsexy retailers like JC Penny and S&S Cafeteria (“Candelight Dinner Specials!”) get in on the act, you understand how huge the market potential has become.
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A Valentine's Day Breakdown
- Consumers purchased an estimated 180 million roses for Valentine's Day in 2005, according to the Society of American Florists.
- Valentine's Day is the number one floral market holiday, according to the Society of American Florists.
- In February 2005, jewelry stores in the United States sold $2.4 billion worth of merchandise, according to the U.S. Census Bureau.
- Valentine's Day is the second largest holiday for giving greeting cards, according to Hallmark.
- More than 36 million heart-shaped boxes of chocolate are sold for Valentine's Day, according to the Chocolate Manufacturers Association and National Confectioners Association.
- Valentine's Day is the fourth biggest holiday of the year for confectionery purchases, after Halloween, Easter and Christmas, according to the National Confectioners Association.
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According to the NRF, the average male was expected to spend close to $140 on his significant other, opposed to the average female spending only half that amount. This simply means that the Kay Jewelers media buyer gets a big fat raise for purchasing those Super Bowl spots.
The NRF also reports that hearts grow fonder with age. It’s estimated that consumers aged 45-54 planned to spend more on Valentine’s Day than any other age group. With a predicted average expenditure of $128.78 per consumer, middleagers have significantly increased their spending from $88.96 in 2004.
What does this mean? Simply that those S&S Valentine’s Day ads must be working, too.
On the flip side, young love may not be all it’s cracked up to be. In the typically lucrative consumer market of 18-24 year olds, spending for Valentine’s Day 2006 was expected to be only $81.89 per consumer. That’s a nearly 50 percent decline of $154.65 from only two years ago.
Perhaps when it comes to the youth market, retailers need to sell love a little harder next year.
*Final figures not available at posting time.
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