Australian consumers are expected to spend $465 million this Valentine’s Day, a modest decline from recent years as cost-of-living pressures continue to impact retail sales.
Research from the Australian Retailers Association (ARA), in conjunction with Roy Morgan, forecast that 3.4 million Australians will celebrate the occasion with retail purchases.
While overall spending is expected to decline, those who make purchases are expected to spend $135 per head, an increase of 14.4 per cent compared to the previous year.
Australians aged 18 and 34 are expected to spend the most, accounting for around $145 million in sales.
Among those planning to purchase a Valentine’s Day gift, almost a quarter reported spending more than in previous years, while 57 per cent will spend ‘around the same’.
CEO Paul Zahra said that cost-of-living pressures are set to influence Valentine’s Day sales significantly for retailers.
“With 700,000 fewer Australians planning to buy a gift for a loved one this Valentine’s Day – it’s clear just how much of an impact the rising cost of living is having on households,” he said.
“The 18 to 34 demographic will spend significantly less on Valentine’s Day this year, driving much of the decline. They’re typically the age group most affected by interest rates and cost-of-living pressures.”
While the ARA report does not detail the expected popularity of watch and jewellery products, a similar study published in the US does.
According to the latest annual survey from the National Retail Federation and Prosper Insights & Analytics, spending in the US is expected to reach an all-time high of $US14.2 billion ($AU21.84 billion) this Valentine’s Day.
According to the report, jewellery (22 per cent) is one of the most popular selections among consumers to celebrate the day. This accounted for an estimated $US6.4 billion ($AU9.84 billion) in sales.
Consumers anticipate spending an average of $US185 ($AU284), a sizable increase from the average spending documented over the past five years.
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