Valentine's Day is almost here. Many of you are wondering how sales might go this year. Roy Morgan has put out their first estimate for Valentine's Day 2024 spending, predicting $465 million - down 4.1% or $20 million from 2023 here.
However, remember these are early predictions and are often way off. Last year, Roy Morgan predicted $485 million in spending, but the NAB after Valentine's Day showed Australians actually spent over $849 million - up 7% from the prior year!
So take any early estimates as a guide only, as Valentine's Day spending often exceeds expectations. This is because many people buy on impulse at the last minute. A few years ago, I remember being thrown out of the house and told not to return until I had flowers for my wife.
What Are People Buying for Valentine's Day 2024?
Roy Morgan's data shows the most popular Valentine's Day purchases this year will likely be:
"• Flowers (mentioned by 48% of respondents), chocolates (33%) and dinner or a trip away (11%) are set to be the most popular purchases.
• Intimate gifts remain sought-after, with lingerie (5%) and adult toys (4%) ranking within the top cohort of gifts.
• Of those who are planning to purchase a Valentine’s Day gift, almost a quarter say they will be spending more, while 57% will spend around the same and 19% will spend less.
• About 12% of those Valentine’s gifting will be purchasing a present for someone other than their romantic partner.
• The majority, a total of 70% of respondents will celebrate Valentine’s Day with a romantic celebratory meal."
Key Takeaways for Retailers
- Don't wait until the last minute to order. Sales for Valentine's Day last week started the week before.
- Expect customers to shell out more per gift - an average estimate is $135 per person this year, up 14.4% from 2023.
- The most romantic suburbs outside major cities for sales include Armidale (NSW), Bunbury (WA), Kotara (NSW), Ballarat (VIC), Mackay (QLD), Modbury (SA), Torquay (VIC) and Toowoomba (QLD).
Research sales data from the previous year.
To see what sells in your shop on Valentine's Day and what stock you have, It will take seconds to discover and give you some good ideas. Remember, unlike other marketing holidays, many products on Valentine's Day are still marketable afterwards if you select wisely.
So, in your POS software, look at the Top N stock report, which gives you the top-selling items.
Go to Register Reports marked in green.
Select stock.
Now, you will see two reports. Click the one on green first. It would be best if you held the purple in memory as you may need it before placing an order.
Now select last year's Valentine's Day and the top 40 items, which should be plenty. I suggest doing it by quality sold.
You will get a report with top sellers over Valentine's Day, plus your current stock holding, to see how you stand for Valentine's Day.
We now have a list of the products sold well in your shop. That took less than a minute. Now, make sure you have enough stock.
Create a Valentine's Day-specific section in the shop.
It is creating such a specific section in the shop increases sales dramatically. It doesn't have to be spectacular; it does not have to be big. Put your Valentine's products on the stand.
Put cute messages on signs to decorate the front of your store to attract the attention of passing shoppers. Spread the love.
Conclusion
You can have a significant chance to boost sales and connect with customers on Valentine's Day.
> Prepare for the holiday by using sales data from the previous year, taking into account changes brought on by the pandemic
>Stocking up on merchandise related to Valentine's Day
> Embracing the new trend of buying gifts for friends and pet
> Creating a special section in the store
The key for small retailers is being prepared for strong Valentine's Day demand. Have plenty of gift options stocked up, and go the extra mile with gift wrapping and romance-focused promotions. With the right preparation, your shop can delight customers and make this Valentine's Day your most profitable ever.
