Valentine’s Day sales growth is expected to halve this year as increasing numbers of consumers believing it is a “waste of money”.
According to GlobalData, card and gift sales this year are expected to hit £1.1 billion. This represents a 0.7 per cent growth on last year, a sharp drop from the 1.4 per cent year-on-year growth seen in 2017.
Not only is lower consumer confidence and spending power expected to affect sales, but negative perceptions of the event are reportedly growing.
Last year, less than a third of shoppers thought Valentine’s Day was an important celebration while 31.7 per cent tried to avoid it all together.
Furthermore, 45.8 per cent of consumers thought Valentine’s Day was a waste of money and 56.2 per cent thought it cost too much.
According to GlobalData retail analyst Eleanor Parr, this means “consumers are expected to be more willing to receive and shop for cheaper gifts at discount players”.
“After a successful year for many discounters in 2017, these retailers are likely to gain further share in the Valentine’s Day market as they continue to improve consumer perception of their ranges by introducing more luxury options alongside their value assortments.”
To compensate for the declining interest in the usually lucrative retail event, brands are turning to alternatives like “Galentine’s Day”, an American holiday celebrating female friendship, while online retailers like Notonthehighstreet are promoting gifts for pets.