Love’s Getting More Expensive
Likely due to inflation, people are planning to spend more on this romantic holiday than in years past. The NRF found those planning to observe the holiday will spend an average of $192.80, up from $175.41 in 2022, and the second-highest figure since NRF and Prosper started tracking Valentine’s Day spending in 2004.
“Valentine’s Day is a special occasion to shop for the people we care most about,” says Matthew Shay, president, chief operating officer, NRF. “This year, as consumers embrace spending on friends and loved ones, retailers are ready to help customers celebrate Valentine’s Day with memorable gifts at affordable prices.”
Statista’s numbers were in line with the NRF, finding planned Valentine’s Day spending in the U.S. was expected to reach approximately $26 billion this year – an increase of about $2 billion from 2022.
One shift in Valentine’s Day spending is moving beyond buying merely for loved ones. We can thank Leslie Knope (of NBC’s “Parks and Recreation”) for the growing popularity of Galentine’s Day. And NRF found many consumers are looking to show appreciation for the other meaningful relationships in their lives. Of the $17 increase in per-person spending, $14 comes from gifts for pets, friends and co-workers, along with classmates or teachers.
Valentine’s gifts seem to be almost cliché: flowers, chocolate, dinner and jewelry remain the most typical purchases. NRF listed the top gifts as candy (57%), greeting cards (40%), flowers (37%), an evening out (32%), jewelry (21%), gift cards (20%) and clothing (19%). Americans plan to spend more than $5.5 billion on jewelry and nearly $4.4 billion on a special evening out. Not surprising as the only holiday that is busier for restaurants is Mother’s Day. Candy is still dandy – according to Valentine’s Day consumer insights, Americans who celebrate the day purchase about 58 million pounds of chocolate a year. The Valentine’s Day season represents about $4 billion in confectionery sales each year (IRI), and National Confectioner’s Association is projecting 5% growth in sales for this season.
“The confectionery industry has always kept innovation top of mind, and that’s evident in the wide variety of options available on the shelves of retail stores, in checkout aisles and in online shopping carts,” says John Downs, president, chief executive officer, NCA. “Whether gifting chocolate and candy or treating themselves, consumers can celebrate the season with treats that reflect an endless number of unique preferences that helps them show someone they care this Valentine’s Day.”
Those looking for something sweet but different from that traditional box of chocolates can spring for a box of Krispy Kreme’s new heart-shaped doughnuts made with
chocolate. For a limited time at participating shops across the U.S., Krispy Kreme’s new Valentine’s Day Dozen will feature Hershey’s milk chocolate and Kisses, strawberry and caramel syrup.
For those looking for something out of the box, Godiva and jeweler, Le Vian,
again for a limited-edition 2023 Valentine's Day Collection including necklaces featuring Chocolate Diamonds.
Are You Experienced?
Candy might be the top seller, but Statista reports that about 15% of surveyed Americans stated that the ideal Valentine's Day gift to receive would be some sort of experience, e.g., an event or movie tickets.
If you’re in the Austin area, that might include the immersive, experiential retail component in Jeweler Kendra Scott's bustling South Congress flagship location
License Global reported on last week
. As part of the brand’s “Sweet on You” Valentine’s Day campaign, Scott is partnering with
to reimagine the way we experience ice cream and jewelry.
License Global has been reporting on the increasing popularity of
for some time now, so maybe you want to consider a live show or interactive exhibit instead of a heart-shaped box of chocolates.
NRF found these experience-based gifts are becoming more popular with gift givers as well as those on the receiving end. About one-third (32%) plan to give a gift of experience, up from 26% last year and the highest since NRF and Prosper started asking this question in 2017.
“Men, in particular, are more likely to give a gift of experience compared with last year,” says Phil Rist, executive vice president, strategy, Prosper. “Another notable finding is more than half of consumers say they will take advantage of sales and promotions as they celebrate Valentine’s Day this year.”
And what about that unromantic 48% who don’t love V-Day? NRF reports that even among those who don’t plan to celebrate, 28% will still mark the occasion in some way, seeking non-Valentine’s gifts, treating themselves to something special or planning a get-together or evening out with single friends and family members.
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