Romance lovers won’t be breaking the bank this year, but Valentine’s Day is still set to bring a much needed boost to the economy.
This year’s Valentine’s Day spend is predicted to total $465 million as cost-of-living pressures “clip Cupid’s wings.”
Research from the Australian Retailers Association (ARA), in conjunction with Roy Morgan, shows that this year’s spend is expected to be down $20 million on 2023’s $485 million spend. 3.4 million Australians will be gifting in the name of love this year, down 700,000 from 2022.
Although the overall spend is expected to drop, romantics across the country are expected to spend up to $135 per head.
The 18-34-year-old demographic remains the highest spending demographic and is set to spend $145 million on Valentine’s Day this year, down substantially from $215 million last year. They are closely followed by those aged 35-49 – who will spend $140 million, broadly the same as last year.
As expected, 48 percent of shoppers will be buying flowers, 33 percent chocolates, and 11 percent are preferring experiences, investing in a dinner or a trip away.
Singles shouldn’t stress as 12 percent of those Valentine’s gifting will be purchasing a present for someone other than their romantic partner.
ARA CEO Paul Zahra said cost-of-living pressures are set to have a significant impact on Valentine’s Day this year.
“With 700,000 less 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 18–34-year-old 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 the cost-of-living pressures.
“With the financial pressure that Australians are under, flowers remain the go-to gift – cementing their status as a staple of the Valentine’s Day experience. They’re a sentimental token of love and affection that can be tailored to any budget without breaking the bank.”
However, make sure to choose your gifts wisely, supermarket flowers might not cut it this year. Research by SAP Emarsys Customer Engagement reveals 7 in 10 Aussies have returned items over the past 12 months. One in five Gen Zers will swap heartfelt gestures for cash this Valentine’s Day, returning gifts from their loved ones in secret.