While the slowdown in market has become an issue of concern for everyone in the supply chain the good news is that occasions like Valentines, Christmas, thanksgiving increase helps in neutralizing the effect. In both the US and UK markets, these festivals are seen as the game changers.
In the US, consumers are expected to spend $25.9 billion on Valentine’s Day this year, up from $23.9 billion in 2022 and one of the highest spending years on record, according to the annual survey released today by the National Retail Federation and Prosper Insights & Analytics.
More than half (52%) of consumers plan to celebrate and will spend an average of $192.80. This is up from $175.41 in 2022, and the second-highest figure since NRF and Prosper started tracking Valentine’s Day spending in 2004.
While spending on significant others and family members is in line with last year, 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.
Those aged 35 to 44 plan to outspend other age groups, allocating $335.71 on average for gifts and other Valentine’s Day items, approximately $142.91 more than the average consumer celebrating the holiday.
Similar to recent years, the top shopping destination to purchase Valentine’s Day gifts is online (35%), closely followed by department stores (34%), discount stores (31%) and specialty stores (18%).
The top gifts include candy (57%), greeting cards (40%), flowers (37%), an evening out (32%), jewellery (21%), gift cards (20%) and clothing (19%).
M&S chief executive Stuart Machin is backing big events like Valentine’s Day and Mother’s Day to help drive sales momentum after a bumper Christmas in the US.
The retailer posted record food sales and its highest clothing and home market share for seven years, despite increasing economic pressure on consumers amid the cost-of-living crisis.
Discussing the possibility of a sales slowdown post-Christmas, Machin said shoppers have told them there is “still lots they’re planning for” over the course of the year, with the focus being on big events.
From Valentine’s Day to Mother’s Day and Easter he said
Valentine’s Day to Boost Sales of Retailers in the US and UK