A Valentine's Day Sales Forecast Retailers Should Love

Valentine's Day sales should thrill the hearts of retailers this year: Industry research firm IBISWorld forecasts spending for the lovers' holiday will top $18.6 billion, a 5.8% jump over 2010. That amounts to about $125 per person who buys a gift for that special someone.

The boost in Valentine's Day spending will cover everything from the traditional candy and flowers to jewelry and romantic getaways. Floral purchases are projected to grow by 16.8%, jewelry by 11.3%, romantic getaways by 5.7% and candy sales by 5.1%. Spending on greeting cards, dining out and clothing and lingerie will also see increases this year.

"Luxury spending is already on the rise, so it will come as no surprise that bracelets, earrings, necklaces and rings will be the go-to gift choice for many Americans," said IBISWorld retail industry analyst Nikoleta Panteva in a statement. "This year, IBISWorld expects jewelry to make up 7.8% of all Valentine's Day sales, making its way back to pre-recessionary levels."

IBISWorld says the jump in sales should benefit the stock prices of jewelry industry players Tiffany (TIF), Zale (ZLC) and Blue Nile (NILE). These companies suffered during the initial stages of the recession starting in 2008, but they experienced significant growth in 2010, which could extend into 2011 if the economic recovery gains strength.

According to Morningstar, Tiffany gained 47.02% in 2010, and Zale was up 56.62%, while Blue Nile was down 9.9% in 2010 after skyrocketing 158.6% in 2009.


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BRAD

Wow each person spends $125 on their loved one. I may spend $30 on some flowers and a card, but not close to $125.

January 25 2011 at 5:57 PM Report abuse rate up rate down Reply
bohemianacres

Mike, you are so right. This is just another infomercial. My lover had me for Christmas day. She wants the same things again for Valentine's. How can I say no!!

January 25 2011 at 12:46 PM Report abuse rate up rate down Reply
alftugteaz

My husband proposed to me on Valentine's Day, and we're been married for 30 years.

January 25 2011 at 10:18 AM Report abuse rate up rate down Reply
doonboggle3

Another Hallmark joke of a Valentoon's day. Retailers bonus day.Years ago the people at Hallmark sat around to figure out how to play people and get their cash. The brilliant part is,people fell for it.Kind of sounds like the government.

January 25 2011 at 8:00 AM Report abuse rate up rate down Reply
Sweetheart

WE are taking the money we used for gifts and paying off a target credit card...the best gift we could give each other...no more buying anything if it is not needed, lowering our car insurance coverage,getting rid of TV, gonna go back to cheap dial up and gonna hoard every penny we earn...this is the working poors best revenge against this miserable governmental leadership

January 24 2011 at 8:08 PM Report abuse +9 rate up rate down Reply
scottee

consider this alternative to Obamacare...the Physicians for a National Health Program...HR676
and please read The Cure to Our Broken Political Process by Sol Erdman...

January 24 2011 at 6:30 PM Report abuse rate up rate down Reply