The last year has been very difficult for retailers. The economy officially entered recession mode in December of 2007, and holiday sales in 2008 were dramatically lower than retailers had hoped they would be. The next holiday in the cross hairs of this recession is of course Valentine’s Day, when consumers are expected to spend an average of $20 per person less than they did a year ago.

The National Retail Federation released results from a Consumer Intentions and Actions survey that revealed the average consumer plans to spend $102.50 on Valentine’s Day related spending. This is down more than 16% from a year ago, when the average consumer spent over $120 on Valentine’s Day shopping.

The survey found that people will be buying the normal types of gifts this season, as sales on flowers, chocolates, jewelry, and dining out are expected to be the same proportionately as in past years. It seems that consumers don’t want to change their gift giving habits too drastically, but they do plan to downsize from a year ago.

For candy companies, Valentine’s Day is their third busiest holiday behind Christmas and Easter. The floral industry also depends heavily on Valentine’s Day sales to lead the way to a profitable first quarter, and restaurants depend on tables being full as couples celebrate the day together. Many retail insiders assume that consumers will still want to dine out Saturday night, but they expect restaurants that cater to people on a budget to be more popular than upscale establishments this year.

Valentine’s Day is the first major holiday of any year and is often viewed as an indicator of whether or not other holidays will enjoy strong sales in a given year. The good news for Valentine’s Day this year is that it comes on a Saturday night, in the middle of a three day weekend, giving couples a little more time and incentive to plan something special for the holiday.

If you enjoyed this post, make sure you subscribe to my RSS feed!

Tags: recession, retailers, Valentine's Day

• Keys to Taking Advantage of Layaway Plans
• Salary Freezes a Common Theme in 2009
• A Record Number of Car Dealerships Close in 2008
• New Rules Should Help Retirees
• Four Keys to Charitable Giving
• Is Diversification Dead?
• Are Tax Refunds A Reason To Celebrate?
• 2008 Losses: The Real Numbers