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RAPAPORT... The National Retail Federation (NRF) determined that U.S. consumers are not ready to splurge as much on jewelry for Valentine's Day 2014 as they did one year ago. The NRF estimated that total spending on gifts would reach $17.3 billion, with an average budget of $133.91 for those who celebrate the festival. However, only 19 percent of those who participate plan to purchase jewelry this year, down slightly from 19.7 percent in 2013, and the NRF estimated that jewelry sales would approach $3.9 billion this year compared with $4.4 billion one year ago. Nearly half of those surveyed plan to purchase candy, while 37.3 percent expect to purchase flowers, 51.2 percent plan to buy a greeting card and 37 percent anticipate spending their budget on an evening out. Prosper Insights and Analytics, which conducted the survey for the NRF, determined that 54 percent of U.S. consumers would celebrate Valentine's Day this year, but that figure is down from 60 percent in 2013. The survey also discovered that 26.1 percent of shoppers plan to purchase gifts online this year, the same percentage from one year ago. “Valentine’s Day will continue to be a popular gift-giving event, even when consumers are frugal with their budgets. This is the one day of the year when millions find a way to show their loved ones they care,” said NRF's president, Matthew Shay. “Consumers can expect Cupid’s holiday to resemble the promotional holiday season we saw just a few months ago, as retailers recognize that their customers are still looking for the biggest bang for their buck.” Of those who intend to spend on gifts, the survey revealed that the average man would budget $108.38 for gifts for his significant other and women would budget $49.41 on someone special. Additionally, consumers planned to show their affection with a gift for family members, friends, teachers, pets and colleagues. Pam Goodfellow, the director of Prosper Insights, added, “While fewer are planning to celebrate Valentine’s Day this year, millions of shoppers will still make room in their discretionary budgets to send cards and gifts to loved ones or enjoy a special evening out. Consumers can expect promotions on everything from flowers to date night dinner packages in the coming days, leaving plenty of ideas for those looking to spoil their valentines.”
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