People aren't likely to spend as much on their loved ones this Valentine's Day.
Consumers are projected to spend $18.2 billion on Valentine's Day this year, according to a report by the National Retail Federation.
Last year, consumers spent a total $19.7 billion related to the romantic holiday. Known for eliciting lavish spending from consumers, Valentine’s Day can mean a boon for the retail, restaurant, and hospitality industries.
But apparently consumers will buy fewer heart-shaped chocolates and fancy dinners in 2017 than they did last year.
In 2016, consumers spent an average of $146.84, whereas in 2017 consumers are projected to spend an average of $136.57. Consumer spending on Valentine’s Day grew every year over the past decade before hitting this year’s projected low.
The 10 percent drop among those surveyed regarding their projected Valentine’s spending in 2017 suggests that net profit on the holiday will dip this year.
Despite these projections, producers and industries who profit off the romantic holiday are optimistic.
“Valentine’s Day continues to be a popular gift-giving occasion even if consumers are being more frugal this year. This is one day of the year when millions find a way to show their loved ones they care regardless of their budget,” NRF President and CEO Matthew Shay said in a statement.
The mid-February holiday encompasses more than just Hallmark cards and candy, and is a short-lived holiday seasons that businesses plan marketing campaigns around.
The NRF has surveyed consumers on their spending habits regarding Valetine’s Day for over a decade, and this year marks the first downward turn.
Consumers are planning to spend approximately $4 billlion on jewlery, $3.8 billion on dinners, $2 on flowers, and $1 billion on cards this Valentine’s Day.
A new trend in this year’s Valetine’s Day spending is the desire to be given a “gift of experience.” In other words, individuals are hopeful to get something more worthwhile instead of a minor material gift.
This includes things such as tickets to see a live music show or a hiking trip.