Celebrating Valentine’s Day with a special someone is not going to be cheap. Flowers, chocolates, and cards are among the Valentine’s Day gifts for her. Americans plan to spend $27.4 billion this 2020, according to the survey of the National Retail Federation (NRF).
Aside from Valentine’s Day gifts for her, consumers are purchasing more gifts, candy, flowers, and cards for family, friends, colleagues, and even pets. This popular gift-giving trend and strong consumer finances are the reasons for the huge increase in average spending.
“Valentine’s Day is a sentimental tradition, but gift-giving can be driven by the economy,” said Matthew Shay, the president and chief executive officer of NRF.
“Consumers spent freely during the 2019 winter holidays and they appear ready to do the same in the new year. The same strong employment numbers and higher wages that boosted holiday sales should make it easier to spend a little extra to say ‘I love you’ this year and to spread the gift-giving beyond just your significant other," Shay added.
Moreover, NRF reveals that shoppers will spend $5.8 billion on jewelry; $4.3 billion on an evening out; $2.9 billion on clothes; $2.3 billion on flowers; $2.4 billion on candies, $2 billion on gift cards, and $1.3 billion on greeting cards. "Gifts of experience such as tickets to an event or a trip to a spa are wanted by 41 percent and planned by 28 percent," the NRF report states.
Bankrate survey
Meanwhile, a Bankrate survey shows that millennials are expected to spend an average of $208 for Valentine’s Day while Generation X could shell out $160, on average. Baby boomers and the silent generation are willing to spend $101 and $43, respectively.
The people who are celebrating Valentine’s Day plan to spend an average $196.31. This is a 21% increase based on last year’s record of $161.96.
According to Megan Gorman, founder and managing partner at Chequers Wealth Management, a San Francisco-California based investment advisory firm, claim that younger adults could be in newer relationships and are pressured to spend more to impress their new partners. Gorman also considers social media and the Internet as other sources of pressure for millennials.
