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Valentine's Day expected to buck sluggish spending trend
[Mon 06/02/2012 04:34:08]
 Love is most definitely in the air according to analysts at IBISWorld, which predicts Valentine’s Day spending to spike 4.8 per cent on last year.
It predicts Australian consumers to fork out a total of $908.7 million for the most romantic day of the year.
"Last year many Australian couples celebrated Valentine's Day as cost effectively as possible, with activities like a picnic in the park, a sunset stroll along the beach or a candlelit dinner at home," says Karen Dobie, IBISWorld general manager Australia.
"Despite poor retail sales, Australians are still willing to make luxury purchases for their loved ones. This year we are expecting a more lavish display of affection through a splurge on something sparkly, a romantic meal out or the sharing of a boutique box of chocolates.”
Tourism is forecast to rake in most of the cash splashed for February 14 but jewellery and greeting cards are also big winners.
IBISWorld predicts consumers will spend $36.4 million on jewellery this Valentine’s Day, up nine per cent on 2011.
"Australians will trade up and purchase higher-value gifts in the lead-up to February 14. Jewellery retailers can expect a boost in sales as the rising cost of commodities – notably silver and gold – flows through to more expensive jewellery at stores.”
 Greeting card sales will rise 2.9 per cent to $14 million. Affirmations managing director Daniel Maher says Valentine’s Day is possibly growing in popularity because of the attention it gets from media and businesses.
“More people are in love perhaps,” he jokes. “It gets some good advertising and lots of people do some sort of promotion or highlight the event in some way, so I suppose it’s an event that’s building on people’s radar.
“It’s a nice time to send an acknowledgement to one of your nearest or dearest or someone you’re in love with perhaps.”
Sales of his company’s love themed cards do tend to increase around the special day but he doesn’t expect a dramatic spike across the board for Valentine Day’s spending.
“We do have a little spike around Valentine’s Day for those sorts of cards and we do publish a book called The Secret Art of Kissing, which always sells a little bit better around Valentine’s Day…. [but] I don’t see any reason why it would be bigger this year,” he explains.
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