RAPAPORT... US consumer spending on gifts is expected to decrease 20% this Valentine’s Day, with the number of people planning to purchase jewelry also slipping, according to the National Retail Federation (NRF).
Consumers intend to lay out $21.8 billion on their loved ones over the holiday, the NRF noted last week following a survey. That’s a sharp drop from the record $27.4 billion it predicted ahead of last year’s Valentine’s Day. At the same time, the number of consumers who plan to spoil their loved ones with an evening out plummeted to 24% — the lowest figure in the survey’s history — compared with 34% a year ago.
“There is no question the pandemic has disrupted many aspects of Americans’ daily interactions and activities,” said NRF CEO Matthew Shay. “However, there remains a special significance around Valentine’s Day, and consumers are committed to celebrating friends and loved ones, even if that means having to alter those traditional holiday celebrations.”
Instead, 41% of respondents noted they would plan a special dinner at home. Some 54% plan to send candy, while 44% will give greeting cards. Other favorites included flowers, chosen by 36%; gift cards, picked by 21%; and clothing, which garnered 20% of the vote. Only 18% plan to shell out on jewelry, compared to 21% in 2020.
The average consumer who plans to spend on Valentine’s Day will lay out $165, down 16% from last year. Spending on significant others will fall by an average of $13 per person compared with last year. Meanwhile, the outlay on teachers and classmates will come to about $11, down from $14 a year ago. The amount consumers will spend on coworkers slid to $8, compared to $13 in 2020.
The survey found that 38% of all buyers intended to shop online. Another 29% will purchase in department stores, and 28% at discount stores. Specialty stores were chosen by 17%, and an additional 17% picked local or small businesses.
Image: A couple on Valentine’s Day. (Shutterstock)
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