LOS ANGELES – After a strong winter holiday season, industry research firm IBISWorld expects Valentine’s Day to sweeten retail sales this year. Consumers are forecast to spend 5.8% more on Valentine’s Day purchases in 2011 than 2010, totaling $18.6 billion or about $125 per person.
“Instead of going out for a romantic dinner, time-crunched consumers will opt for easy-to-deliver bouquets and arrangements”
|
2009 Sales |
2010 Sales |
*2011 Sales |
% Change |
% of Total |
||||||
| $770.4 | $784.3 | $822.8 | 4.9% | 4.4% | ||||||
| $2,499.3 | $2,466.8 | $2,593.2 | 5.1% | 13.9% | ||||||
| $1,371.8 | $1,308.7 | $1,456.3 | 11.3% | 7.8% | ||||||
| $1,425.0 | $1,355.2 | $1,582.5 | 16.8% | 8.5% | ||||||
| $7,863.5 | $8,508.3 | $8,831.2 | 3.8% | 47.4% | ||||||
| $1,106.9 | $1,126.3 | $1,165.3 | 3.4% | 6.3% | ||||||
| $2,001.0 | $2,047.0 | $2,164.3 | 5.7% | 11.6% | ||||||
|
TOTAL |
$17,037.9 | $17,597.1 | $18,615.6 | 5.8% | 100.0% |
Jewelry sales are anticipated to record strong growth, increasing 11.3 percent from February 2010. Increased jewelry sales will benefit companies like Tiffany & Co. (TIF), Zale Corp (ZLC) and Blue Nile (NILE).
“Luxury spending is already on the rise, so it will come as no surprise that bracelets, earrings, necklaces and rings will be the go-to gift choice for many Americans,” said IBISWorld retail industry analyst Nikoleta Panteva. “This year, IBISWorld expects jewelry to make up 7.8% of all Valentine’s Day sales, making its way back to pre-recessionary levels.”
Likewise, luxurious getaways are forecast to make a hefty jump this year, growing 5.7% in popularity from last year. While the holiday falls on a Monday and many will be unable to take a trip because of work, travelers with high net worth will be willing to splurge on bed-and-breakfast getaways and long-weekend vacations to warm and sunny locations.
Greeting cards and candy – the two staples that define Valentine’s Day – are expected to grow steadily as well, increasing 4.9% and 5.1%, respectively. Many school-age children will be passing out valentines and candy boxes to their classmates, thereby boosting sales totals. Sweethearts will also be ordering more flowers this year, with about 16.8% growth.
“Instead of going out for a romantic dinner, time-crunched consumers will opt for easy-to-deliver bouquets and arrangements,” said Panteva, adding that because people will be working on Valentine’s Day, they will browse online and will place orders for same-day delivery.
Dining out is expected to inch up 3.8%, followed by lingerie and clothing purchases at 3.4%.
“Working consumers will not have the time to dine out nor find much of a reason to get dolled up on a Monday night,” said Panteva. “Nevertheless, growth is expected for each of the popular Valentine’s Day categories this year, which is great news for retailers nationwide.”
About IBISWorld, Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit www.ibisworld.com or call 1-800-330-3772.
Source: IBISWorld, Inc.
