| FOR IMMEDIATE RELEASE | 2/2/2009 |
Can’t Buy Me Love: Valentine’s Spending Down 4.8 Percent
Love’s On A Budget According To IBISWorld Research
LOS ANGELES – Feb. 2, 2009 – This Valentine’s Day is all about creative thinking as lovers choose candy and cards rather than bouquets and bling. According to IBISWorld, the nation’s most respected independent publishers of industry research, spending will fall to $28.6 billion this holiday – a 4.8 percent drop from last year and a 6.8 percent drop since 2007.
“Valentine’s Day is more of a discretionary occasion than Christmas and birthdays, which means it will be hit particularly hard by the current economic climate,” explained George Van Horn, senior analyst with IBISWorld. “Tightening household budgets will make it difficult to justify splurging on loved ones this year, especially for couples with children who have just had to budget for the Christmas holiday.”
In fact, Valentine’s Day spending will fall below the level of spending for the total U.S. retail sector over the first quarter of 2009. IBISWorld expects many couples to substitute pricier gifts for a simple box of chocolates and a card, as well as coming up with inexpensive ways to celebrate such as cooking a romantic meal at home, enjoying a picnic, walking on the beach or writing a love letter or poem.
Big ticket items such as jewelry, expensive dinners, lingerie, roses and weekends getaways are the most likely to suffer. Likewise, News Agents and Gift Retailers are expected to significantly underperform in greeting card sales, as consumers buy these products from big box, supermarket and warehouse stores instead.
The table below represents the percentage change in Valentine’s Day spending from last year across a range of popular categories:
| Item |
2008
Spending
(millions) | 2009
Spending
(millions) |
Change in
Spending From
2008 – 2009 |
| Greeting Card | $2,541 | $2,568 | +1.1 percent |
| Candy | $2,751 | $2,777 | +0.9 percent |
| Jewelry | $1,555 | $1,475 | -5.1 percent |
| Flowers | $485 | $475 | -2.0 percent |
| Dining out | $12,320 | $11,564 | -6.1 percent |
| Clothing & intimate apparel | $4,845 | $4,518 | -6.7 percent |
| Romantic getaway | $3,575 | $3,450 | -3.5 percent |
“Overall, dining out is likely to still be the most popular way to indulge a loved one, representing 41 percent of overall Valentine’s Day sales,” said Van Horn.
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 U.S. 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.