Valentine’s Day romantics set to become cheapskates

This year’s Valentine’s Day spending total will rise 0.5% from last year to just $894.2 million, following an overall 2.2% rise in retail spending according to IBISWorld.

The firm expects more expensive gifts such as jewellery, lingerie and roses by the dozen will be substituted for chocolates, cards and a romantic meal at home.

IBISWorld also says card sales will rise by 3.8% to $13.9 million, chocolates and confectionary by 3.9% to $274 million and flowers by 3.4% to $44.8 million.

General manager Robert Bryant argues discounted options are likely to perform well, such as cards sold at supermarkets rather than specialty gift stores.

“Tightening household budgets will make it difficult to justify splurging on loved ones this year, especially for couples with children who have just had to budget for the Christmas holiday. Valentine’s Day is considered a more discretionary occasion than Christmas and birthdays, which means it will be hit particularly hard by the current economic climate.

“Job cuts appearing in more and more sectors of the Australian economy are having a significant impact on consumer sentiment – accelerating people’s concerns over job security and financial stability,” he says.

But not everyone is feeling the effects of less consumer spending. James Stevens, who runs online flower delivery service Roses Only, says business is as good as ever.

“To be perfectly honest, our sales are tracking year on year quite similar to where they were last year and the year before. February is looking up, especially for Valentine’s Day. That could be for a number of reasons; we’re out there doing a lot more advertising and marketing, which isn’t costing as much.

“I think having a strong brand will always have people flocking. We’re putting a lot of strength into our brand, and I think a lot of people will flock to a brand they can trust.”