Total Valentine’s Day spending is expected to rise 3.3 percent from 2009, according to industry research firm IBISWorld. Its annual holiday sales forecast predicts sales will reach $17.6 million. And since this year’s holiday falls on a Sunday, the research firm anticipates consumers to move from traditional gift-giving towards dining out.
“Because Valentine’s Day lands on a Sunday, restaurants are likely to gain traffic throughout the entire weekend,” says Toon van Beeck, senior analyst with IBISWorld. “Furthermore, because President’s Day is on the following Monday, many consumers will be able to travel over the three-day weekend, further boosting restaurant sales.”
The study predicts dining out sales will tally more than $8.5 million, an 8.2 percent increase over last year’s sales. Greeting cards and clothing sales are both expected to rise 1.8 percent.
Other categories aren’t expected to benefit as much, however, with sales of candy, jewelry and flowers all expected to decline, says IBISWorld. “Many retailers will see Valentine’s Day as an opportunity to kick start the New Year, but the unemployment rate and continued uncertainty of the economic recovery will hamper growth and expansion,” says van Beeck. “This combined with the fact that the holiday is a discretionary purchase, we expect customers to remain on the shopping sidelines for the second consecutive year.”