Valentine’s Day is just around the corner and, as always, this year it’s all about gifts, cards, chocolates, and flowers. American spending on gifts is expected to increase by 32% this year, with total estimated sales of around $27.4 billion, according to the National Retail Federation (NRF).
Retailers should be aware of consumer behavior and buying habits at this time of year in order to capitalize on sales.
The most important questions for retailers are:
• What gifts do consumers prefer to buy this Valentine’s Day? Knowing this will help retailers stock up on the goods that are most likely to sell.
• Where do consumers plan to buy gifts? The answer will help retailers strategize product placement, both online and off.
The report on these rituals and behaviors will help retailers better prepare for the holiday.
Most Popular Valentines Gifts for 2020
Everyone loves surprising their loved ones with gifts, chocolates, and flowers. But which are the most popular among consumers?
The above analysis shows that candy is expected to be the most preferred gift option in 2020, as 52% of consumers are planning to shop for candy this Valentine’s Day. That’s good news for candy retailers and others who can work sweets into their product offerings. Stock up on candies so you don’t run out of inventory when consumers visit your stores.
Candy is followed by greeting cards, gift cards, and flowers, with shoppers leaning more towards flowers. Other favorites include an evening out, jewelry and clothing.
Estimated Sales Forecast in Billions
Which category will reign supreme? With regards to sales, jewelry tops the charts with an estimated total sales of $5.8 billion this season. Not far behind is an evening out, with an estimated $4.3 billion in sales. The gifts that will garner the least revenue this year are greeting cards and gift cards, earning an estimated $1.3 and $2 billion respectively.
Gift Preference vs. Estimated Sales
Though candy and greeting cards are the most preferred gift options, jewelry is estimated to earn the highest sales figure. The reason why is obvious — jewelry tends to be a lot more expensive than candy or greeting cards. Even though candy is preferred 31% more than jewelry, the estimated revenue of candy is $3.4 billion less.
Most Popular Valentine’s Day Shopping Destinations:
• Department stores, visited by 36%
• Discount stores and online, tied at 32%
• Specialty stores at 19%
• Florists at 17%
• Local small businesses at 15%
• Clothing stores and jewelry stores tied at 11%
Where are consumers shopping for their Valentine’s Day presents this year? The above data shows that department stores are the most popular, followed by discounts and online stores. Naturally, stores that sell online and off will probably edge out the competition this Valentine’s Day.