Valentine’s Day - will it be time to splash the cash?

Love it or loathe it, that time of year is here again.

Valentine’s Day is often relied upon to bring a boost to British business when it is much needed. Christmas is over and some families are feeling the pinch. Dry January and healthy eating mean that January is often a challenge for the hospitality and retail industries, so traditionally Valentine’s Day provides an uptick in spending that is usually very welcome. However, in today’s economic environment where the cost of living is continuing to soar, will consumers be dissuaded from buying anything more than a card and a bunch of flowers?

According to Global Data’s Report Store, last year in 2023, the gifts segment accounted for the largest UK Valentine’s Day retail market share, way ahead of cards, food and drink. Fine jewellery & watches accounted for the highest UK Valentine’s Day market share. This shows that certain demographic are still putting their money where their mouths are to shower affection upon lucky loved ones – but this is only part of the story. Although gifts might be a top spending priority for some, the younger love bugs are more keen to spend on ’experiences’. Research from HGEM revealed that last year nearly one in three Gen-Zs and 28% of millennials were planning a Valentine’s visit to a hospitality venue. This is great news for hospitality and gives an indication of which market sector to target – extravagant meals may not appeal to the younger generations but ‘meal deals’ including wine or cocktails may be the offer to get more of the Gen-Zs and millennials through the door.

Continuing with the theme of wining and dining, Global Data’s findings also provide some clues around food and drink. Their research reveals that 23% of all couples – regardless of age – are still planning to have a romantic night out. Many more, in fact more than double (49%) are planning a romantic dinner in the comfort of their own home. Gone are the days when restaurants were the only option for a romantic Valentine’s celebration; these days more and more of us are creating the same ambiance at our personal dining tables and the supermarkets have been smart in offering ‘special occasion’ meal packages.

Ultimately, it seems that Valentine’s day is still an occasion to be celebrated and that means it will still be positive for UK business across the board. However, the businesses most likely to succeed are those who are most adept at reading the market and adjusting their price points accordingly. Reduced priced meal deals, Valentine’s Day restaurant special offers and reductions on key gift items will help soften the financial blow for consumers who are already facing a cost of living crisis.