COVID can’t stop love, Valentine’s spending
Consumers expected to spend $21.8 billion on loved ones
February 14 — Valentine’s Day — a day for love and romance.
While the coronavirus pandemic has changed everything about daily life this past year — it won’t stop Valentine’s Day.
According to a recent survey by the National Retail Federation and Prosper Insights & Analytics, 52% of U.S. adults plan to celebrate the day this year — with anticipated spending of $21.8 billion.
The estimated 2021 spending figure is down from 2020’s record $27.4 billion, but remains the second highest anticipated spending for Valentine’s Day since 2009.
National Retail Federation President and CEO Matthew Shay said there remains a “special significance” around Valentine’s Day.
“Consumers are committed to celebrating friends and loved ones, even if that means having to alter those traditional holiday celebrations,” he said in a press release.
Nearly three-quarters (73%) of consumers celebrating Valentine’s Day this year feel it is important to do so given the current state of the pandemic. The virus is still front and center, with 74% indicating it will directly impact their plans for the holiday, the National Retail Federation study revealed.
“Consumers still feel it’s important to spoil their loved ones in light of the pandemic,” Phil Rist , Prosper Insights executive vice president of strategy, said in the release.
Those celebrating can still expect the classic candy, cards and flowers, but as the pandemic continues and ongoing restrictions on indoor dining and occupancy across remain in place across the region, there is a significant decline in the number of consumers who will plan for an evening out, the data finds.
“Less than one-quarter (24%) of consumers plan to gift their loved one with an evening out, the lowest in the survey’s history. Even still, 41% say they will plan a special dinner or celebration in the comfort of their own home,” the release stated. Last year, 34% of respondents planned to gift an evening out.
Since the start of the pandemic, restaurants have shifted the way they operate with many enhancing their takeout offerings to include “ready to heat” meal kits. That trend is continuing over the Valentine’s Day holiday across the tri-county region, with restaurants offering special Valentine’s Day dinners, cocktails to go and meal kits.
Because of the altered plans for this Valentine’s Day, those surveyed said they plan to spend an average of $164.76 — down $32 from 2020’s record $191.31.
Another impact of COVID-19 on spending plans is a decrease in spending on teachers, classmates and co-workers, as social distancing and virtual learning continue.
“Consumers are committed to celebrating friends and loved ones, even if that means having to alter those traditional holiday celebrations.”
Matthew Shay, president and CEO, National Retail Federation
Consumers participating in the survey said they plan to spend an average of $10.77 on their children’s classmates and teachers, down from $14.45 last year. In addition, they plan to spend an average of $8.47 on colleagues, down from $12.96 in 2020, according to the survey.
One group that will not see any decline in what is spent on them for the holiday? Pets. The survey found that 27% of those celebrating Valentine’s Day are planning to buy gifts and other treats for their pets — which is the same level of Valentine’s Day spending as 2020.
According to the 2019-20 APPA National Pet Owners Survey, 67% of U.S. households, 84.9 million homes, own a pet. Dogs (63.4%), cats (42.7%) and fish (11.5%) top the list of pets owned by Americans. In 2020, $99 billion was spent by pet owners on pet care.
So, where are people shopping this year?
Online appears to be the most popular shopping destination, according to the data, visited by 39%, followed by department stores (29%), discount stores (28%) and local small businesses and specialty stores tied (17%).
This year is the first time consumers listed small businesses as a top five shopping destination since the question was added to the survey in 2015.
Throughout the pandemic small, local businesses have been the focus of awareness campaigns to encourage consumers to shop, dine and patronize small businesses. Some of those efforts have included virtual tip jars and gift card promotions.
The National Retail Federation and Proper Insights & Analytics survey of 7,882 adult consumers was conducted Jan. 4 through Jan. 12 and has a margin of error of plus or minus 1.1 percentage points.