Marie Redding, associate editor02.09.16
Valentine’s Day is ranked as the fourth largest spending holiday, and shoppers in the U.S. are expected to spend an all-time high of $19.7 billion this year.
Consumers spent $18.9 billion on the holiday in 2015, which marked a 10% increase over the $17.3 billion spent in 2014.
The statistics are from the National Retail Federation’s (NRF) Valentine’s Day Consumer Spending Survey 2016, conducted by Prosper Insights and Analytics, and more than half of consumers surveyed (54.8%) said they plan to celebrate Valentine’s Day this year. Research was conducted from January 5-12, 2016, and 7,293 consumers were polled.
How much will each shopper spend? The average is $146.84, up from $142.31 last year.
Are beauty brands doing enough to entice shoppers to spend more on fragrances and beauty gifts?
Many brands have created gift-worthy packaging this year that looks dressed for the occasion. Take a look at the slideshow: Packaging To Swoon Over for Valentine’s Day, which features cosmetics, candles, fragrances and gift sets in pink and red, adorned with hearts and flowers.
Breaking Down The Numbers
The NRF ranks each holiday and holiday season, regarding spending, which are all big opportunities for retailers as well as beauty brands.
Valentine’s Day is in fourth place, ranking behind these top three: Winter Holidays, which includes Christmas, Kwanza and Hanukah; the Back-to-School season, which includes school and dorm room supplies; and Mother’s Day.
Matthew Shay, president/CEO, NRF, said, “As the first major consumer holiday of 2016, Valentine’s Day could provide a positive boost in spending our economy needs. Low gas prices and guaranteed promotions from retailers large and small should help consumers as they look for the perfect gift for their friends and family. Looking ahead, we’re optimistic consumers are in a good place when it comes to spending on discretionary items like gifts.”
“Gifts of Experience”
Beauty marketers might want to think about how to create a “gift of experience,’ since this category has proven to be worthy of its own category this year in the NRF’s survey. (MAC Cosmetics' James Gager spoke about this trend as well.)
The NRF says that 24% of consumers surveyed said they plan to give a gift of experience such as tickets to a concert, a spa service or an art lesson. Nearly four in 10, or specifically 38.8%, said that they would love to receive a gift of experience - spending a record total of $4.5 billion, the highest since NRF began tracking spending on gifts in 2010.
Pam Goodfellow, principal analyst, Prosper, said, “This year we expect consumers will look for unique and creative gifts, including that extra special ‘experience’ that can be shared any time throughout the year. Even those on a tight budget can find affordable ways to create a special moment with each other even past Valentine’s Day.”
Department Stores Rank First
Beauty marketers with POP displays and retailers that create in-store promotions for the holiday probably already know that their efforts count, and here’s proof. Department stores will see the most traffic this Valentine’s Day, as 34.5% of consumers surveyed said they will shop at one. Nearly one-third or 31% of shoppers will go to a discount store.
Here’s how online shopping and other types of stores ranked, in this graph.
Consumers Are Shopping for Family Members & Pets Too
Valentine’s Day gifts aren’t only for significant others and spouses. Just about everyone surveyed, 90.8%, said they were going to shop for their significant others or spouses, but consumers are also shopping for children, parents, classmates, teachers, and even pets.
Here’s how consumer spending breaks down:
See Kiko Milano and other beauty brands in this Valentine's Day packaging slideshow.
Consumers spent $18.9 billion on the holiday in 2015, which marked a 10% increase over the $17.3 billion spent in 2014.
The statistics are from the National Retail Federation’s (NRF) Valentine’s Day Consumer Spending Survey 2016, conducted by Prosper Insights and Analytics, and more than half of consumers surveyed (54.8%) said they plan to celebrate Valentine’s Day this year. Research was conducted from January 5-12, 2016, and 7,293 consumers were polled.
How much will each shopper spend? The average is $146.84, up from $142.31 last year.
Many brands have created gift-worthy packaging this year that looks dressed for the occasion. Take a look at the slideshow: Packaging To Swoon Over for Valentine’s Day, which features cosmetics, candles, fragrances and gift sets in pink and red, adorned with hearts and flowers.
Breaking Down The Numbers
The NRF ranks each holiday and holiday season, regarding spending, which are all big opportunities for retailers as well as beauty brands.
Valentine’s Day is in fourth place, ranking behind these top three: Winter Holidays, which includes Christmas, Kwanza and Hanukah; the Back-to-School season, which includes school and dorm room supplies; and Mother’s Day.
Matthew Shay, president/CEO, NRF, said, “As the first major consumer holiday of 2016, Valentine’s Day could provide a positive boost in spending our economy needs. Low gas prices and guaranteed promotions from retailers large and small should help consumers as they look for the perfect gift for their friends and family. Looking ahead, we’re optimistic consumers are in a good place when it comes to spending on discretionary items like gifts.”
- $1.1 billion on greeting cards.
- $1.7 billion on candy
- $1.9 billion on flowers.
- $2 billion on apparel
- $4.4 billion on jewelry
- $4.5 billion on “gifts of experience"
“Gifts of Experience”
Beauty marketers might want to think about how to create a “gift of experience,’ since this category has proven to be worthy of its own category this year in the NRF’s survey. (MAC Cosmetics' James Gager spoke about this trend as well.)
The NRF says that 24% of consumers surveyed said they plan to give a gift of experience such as tickets to a concert, a spa service or an art lesson. Nearly four in 10, or specifically 38.8%, said that they would love to receive a gift of experience - spending a record total of $4.5 billion, the highest since NRF began tracking spending on gifts in 2010.
Pam Goodfellow, principal analyst, Prosper, said, “This year we expect consumers will look for unique and creative gifts, including that extra special ‘experience’ that can be shared any time throughout the year. Even those on a tight budget can find affordable ways to create a special moment with each other even past Valentine’s Day.”
Department Stores Rank First
Beauty marketers with POP displays and retailers that create in-store promotions for the holiday probably already know that their efforts count, and here’s proof. Department stores will see the most traffic this Valentine’s Day, as 34.5% of consumers surveyed said they will shop at one. Nearly one-third or 31% of shoppers will go to a discount store.
Here’s how online shopping and other types of stores ranked, in this graph.
| Where Will You Purchase Valentine's Day Gifts This Year? |
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Information Only those who indicated that they plan to celebrate Valentine's Day answered the question below. |
 Charts from the NRF Foundation’s Retail Insight Center. To access this data and more research please visit the Retail Insight Center. |
Consumers Are Shopping for Family Members & Pets Too
Valentine’s Day gifts aren’t only for significant others and spouses. Just about everyone surveyed, 90.8%, said they were going to shop for their significant others or spouses, but consumers are also shopping for children, parents, classmates, teachers, and even pets.
Here’s how consumer spending breaks down:
- $89.86 on significant others or spouses
- $27.79 on other family members
- $7.08 on children’s classmates and teachers
- $5.83 on co-workers
See Kiko Milano and other beauty brands in this Valentine's Day packaging slideshow.
