Friday, February 14, 2014

Where's the Love?

Make no mistake about it Valentine’s Day is more about economics than love.  The retail industry counts on the romantics among us to spending billions on jewelry, flowers, candy, cards, and other pretensions of affection.  The day is so important to retails, that the National Retail Federation stages a  survey of over 6,000 adults in every January.  Unfortunately, the Federation has reported that Valentine Day spending is expected to barely top $17 billion in 2014.  This compares to $18.6 billion last year. 

Apparently fewer people are celebrating the day.  The Federation’s survey suggests that only 54% of Americans are taking the time and trouble to offer a token of their affection to another.  Just a couple of years ago over two-thirds of us got into an amorous frame of mind. 

Even though Americans seems to be losing interest in Valentines, those who still make the effort are spending more.  This year men are expected to spend about $113.00 and women $57 per person.  Candy is the most frequent purchase and flowers bring up a close second.  Dinner out is popular.  The Federation has observed a shift to discount stores from department stores for Valentine’s Day giving. 

That last retail factoid might help us understand why the love has been lost for some of us.  Consumers are still a bit flat and some of the nicer things in life have to be struck from the budget.  It is sad to think that our love lives have to suffer for lack of new jobs. 
 
So get out that construction paper and those crayons and create some love!  Your economy is lonely!



Neither the author of the Small Cap Strategist web log, Crystal Equity Research nor its affiliates have a beneficial interest in the companies mentioned herein.

 

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