Can’t Buy Me Love: Valentine’s Spending Down 4.8 Percent
Love’s On A Budget According To IBISWorld Research
“Valentine’s Day is more of a discretionary occasion than Christmas and birthdays, which means it will be hit particularly hard by the current economic climate,” explained
In fact, Valentine’s Day spending will fall below the level of spending for the total U.S. retail sector over the first quarter of 2009. IBISWorld expects many couples to substitute pricier gifts for a simple box of chocolates and a card, as well as coming up with inexpensive ways to celebrate such as cooking a romantic meal at home, enjoying a picnic, walking on the beach or writing a love letter or poem.
Big ticket items such as jewelry, expensive dinners, lingerie, roses and weekends getaways are the most likely to suffer. Likewise, News Agents and Gift Retailers are expected to significantly underperform in greeting card sales, as consumers buy these products from big box, supermarket and warehouse stores instead.
The table below represents the percentage change in Valentine’s Day spending from last year across a range of popular categories:
2008 Spending 2009 Spending Change in Spending From 2008 - 2009 Item (millions) (millions) Greeting Card $2,541 $2,568 +1.1 percent Candy $2,751 $2,777 +0.9 percent Jewelry $1,555 $1,475 -5.1 percent Flowers $485 $475 -2.0 percent Dining out $12,320 $11,564 -6.1 percent Clothing & intimate apparel $4,845 $4,518 -6.7 percent Romantic getaway $3,575 $3,450 -3.5 percent
“Overall, dining out is likely to still be the most popular way to indulge a loved one, representing 41 percent of overall Valentine’s Day sales,” said
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