Many Retailers Left at Altar as the Economy Slows Cupid

Posted on | February 5, 2009 |

by Robert Passikoff
Brand Keys Valentine’s Day Index Down 15 Percent

Valentine’s Day will be the first major holiday of 2009 to feel the economic pinch. This year the average price consumers placed on love is $108.00, down 15% from last year.

For our bi-annual Customer Loyalty Engagement Index, we asked 1,200 men and 1,200 women (18-60 years of age) from the nine Census regions of the United States, what they were going to do, what they were going to buy and how they were going to celebrate Valentine’s Day 2009. Men, women, and friends intend to exchange gifts this February 14th but at a slightly lower spending level: $140 spent by men (versus $166, 2008), and $75 (versus $90) spent by women, down 15% over last year.

Gift-giving has skewed away from the purchase of expensive presents and gift cards to less expensive, more intimate tokens of love and devotion. Dinners and drinks, both alcoholic and other, have picked up 16% over last year. The traditional tokens of love and caring - flowers, candy, jewelry, and lingerie - are down 10 to 15%.

The top-10 gifts for 2009 include:

The purchase of gift cards had nearly doubled over the past five years because consumers felt they had become a more-than-acceptable gift for a broader range of recipients. But this is the first year that gift card purchases have flattened. This change in purchase behavior is likely due to the fact that in this economy people intend to give fewer tangible gifts and will spend more time with their Valentines instead of giving a more traditional, material gift.

Valentine’s Day had become gender-neutral in terms of how men and women think when it come to how they’ll celebrate the holiday. Except this year, what they’re going to do has. Fifteen-percent of the men and women (nearly four times the 2008 number) indicated that they intend upon staying home!

Top-4 Valentine’s Day activities included:

Who’s Your Dream Date?

Do you have a dream date? Everyone was asked, “Next to your very own sweetheart, whom would you like to celebrate Valentine’s Day with?” Fantasies included:

Love may conquer all. It’s just going to be a bit more difficult in this economy.

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Robert Passikoff is founder of Brand Keys Inc. (New York), a brand and customer loyalty consultancy. He can be reached at 212-532-6028, x12, or robertp@brandkeys.com.