STORY:
Celebrating Valentine's Day more than ever
Source: About.com
Article by: Melody Vargas

Though consumers will be spending less on average, more people will be celebrating Valentine's Day this year, providing another boost in spending to the third-largest retail holiday of the year. The NRF 2005 Valentine's Day Consumer Intentions and Actions Survey, conducted by BIGresearch for NRF, found that the average consumer will spend $97.27 on Valentine's Day, down slightly from $99.24 last year. However, 61.8 percent of consumers plan to celebrate the holiday, up from 59.8 percent one year ago. In all, 2005 Valentine's Day spending is forecasted to reach $13.19 billion.

Greeting cards remain the most popular Valentine's Day gift this year, with nearly two-thirds (66.9%) of consumers planning to purchase at least one card for the holiday. Nearly half of consumers will celebrate by buying candy (49.4%) or treating themselves to an evening out (47.4%).

Additionally, more than half of men (57.8%) plan to buy flowers and one in five (18.1%) plan to purchase jewelry for Valentine's Day.

"With flowers, candy and dining out, consumers are looking to celebrate Valentine's Day in a very traditional way this year," said NRF President and CEO Tracy Mullin. "While retailers have diversified their merchandise mix to include a variety of holiday-themed items, many consumers will be sticking to their tried-and-true holiday gifts."

Where consumers plan to spend their Valentine's Day budget:

• Significant other or spouse $58.85
• Other family members $21.49
• Friends $5.42
• Childrens' classmates and teachers $3.76
• Co-workers $2.73
• Other people like neighbors and babysitters $5.02

While Valentine's Day spending last year was propelled by young adults, spending this year will be spurred by middle-aged consumers. Consumers aged 45-54 will spend $118.11 each this year, more than any other category and considerably higher than the $88.96 the group spent last year. Young adults 18-24, who were a main factor behind last year's Valentine's Day success, will be cutting back spending this year from $154.65 last year to just $83.50 this year.

"This year, moms and dads will be doing most of the Valentine's Day spending while college students take a back seat," said Phil Rist, Vice President of Strategy for BIGresearch. "Retailers will be counting on middle-aged consumers to provide the bulk of their Valentine's Day sales this year."

Other Valentine's Day facts:

• Consumers purchased more than 175 million roses for Valentine's Day last year, according to the Society of American Florists.
• Valentine's Day is the third most-popular card-sending holiday behind Christmas and Father's Day, according to the National Retail Federation.
• Eight billion pastel, heart-shaped candies with sweet sayings known as "conversation hearts" will be made this Valentine's Day, according to the National Confectioner's Association.