The National Retail Federation reports that Valentine’s Day 2016 will generate almost $20 billion in sales: According its “Valentine’s Day Consumer Spending Survey conducted by Prosper Insights and Analytics, 54.8 percent of consumers will celebrate Valentine’s Day, spending an average of  $146.84 on flowers, jewelry, candy, apparel, and more, up from $142.31 last year.”

Here are some more Valentine’s Day facts, as reported by About.com:

  • “As usual, men spend nearly twice as much as women: $196.39 per guy v.s. $99.87 per gal.”
  • “Those making $50,000 a year or more will spend $169.32 each, vs $109.14 per person making less than $50,000.”
  • “Younger people participate more than older, more settled folks. Nearly two-thirds of those between 25-34 will celebrate the holiday, and 60% of those between 18-24. Less than half of those between 55-64 will celebrate, and only 44.7% of those 65 and older.”
  • “The least popular gifts are also the least romantic. Only 17% will buy clothing, spending $87.37 each, and 15% will buy gift cards, spending $81.20 each.”
  • “For the first time, more will go to department stores (35%) than discount stores (31%). Nearly 20% will go to greeting card stores or florists, while only 11% will go to jewelers. Retailers have stocked the shelves with deals in anticipation of value-conscious shoppers.”

 
Here are the top items purchased for Valentine’s Day. Click the image to read more from About.com.

Val Day
 

9 Replies to “Valentine’s Day Not Only Means Love. It Also Means $$$ for Firms”

  1. Valentine’s Day is a very important festival to almost every lovers. They will exchange presents which are even so expensive to each other. Therefore, some shopping malls provide attractive discounts to improve more purchased made by lovers. Valentine’s day is a good opportunity for shopping malls to make more profit.

    From Hanjun Du (spring2016 MBA350)

  2. Not only Valentine’s Day means a great chance for companies to make profits. In fact, firms are focus on the popular festivals to attract variety of customers nowadays. For example, several days ago was Chinese New Year. During that time, I received some e-mails from cosmetic companies that they have the discounts, or they have the limited edition for the year of monkey. It reveals that firms put a lot of efforts to attract current customers and gain potential customers.

  3. Valentine day is a great time for companies to make more profit by providing attractive deals to customers. This is a time when many people go shopping in order to buy gift for their lovers, friends and family. Companies should make a good discount deal in order for people to buy their products and their is more chance that many people will buy the products because it’s a day when almost everyone wants to offer someone a gift. Valentine day is almost like christmas where many people are willing to offer present to each others. one of the most important days that companies should consider in order to plan good deals for his customers. This will make the company gain new customers and also increase the company’s net income.

  4. In my opinion, Valentine’s Day is just a commercialized holiday designed for companies to make money, and the article exemplifies this statement. While I wasn’t surprised to hear that the holiday generates billions of dollars, I was caught off guard by how much each individual person spends. I figured roughly $50 would be the median, but it states that the average is nearly $150! Why do we feel that the only way to express an interest in someone is by spending several paychecks worth on materialistic items? It also makes sense that the younger generation participates more. We grow up in a world where gifts mean more than words. Even though we have far less money than the older demographic, we’re willing to spend it all on temporary items such as flowers and chocolates. Valentine’s should stop being about who can buy the most and who has the most money. That’s taking away the whole point, isn’t it?

  5. Companies know that most of the population celebrate Valentines Day. Its a great day for companies to make a decent profit. Candy is jacked up in price because it comes in a heart-shaped box, restaurant’s will have a packed out night of couples going out for dinner, and florists will sell dozens of roses at around $50 per pop. Its a very successful day for multiple business. I know as for me, I spent about $100 on my partner. As the statistics show, men do usually spend more and I found my boyfriend and I were in each of the top 5 valentine’s day purchases. I wasn’t shocked when I saw the percentage of the younger communities celebrating the holiday more than the older community.

  6. What an interesting way of representing data!! I being a business analyst major enjoyed reading all the facts and all those numbers. No doubt that valentines day is that one special day when lovers celebrate and appreciate their love and business/commercial people take full advantage of this opportunity. I think there is a high competition among the florists, gift stores and restaurants and those who come up with good marketing of their business with smart ideas end up with nice $$$ at the end of this day.

  7. I was shocked to read how much money Valentines Day generates. It was interesting to read the breakdown of how much men/women, older/younger, more romantic/less romantic spend and what they spend it on. The numbers definitely put the commerciality of the holiday into perspective.

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