How Valentine’s Day Helps the Economy

For many Valentine’s Day is something of a Hallmark Holiday but whether you take it seriously or not, one thing’s for certain. The money earned from all those flower, perfume, and candy sales can have powerful repercussions for the economy. Cupid will be busy this year. The ubiquitous, pudgy winged icon is expected to elicit over $14 billion in much-needed consumer spending this Valentine’s Day according to the National Retail Federation’s (NRF) 2010 Valentine’s Day Consumer Intentions and Actions Survey. That works out to approximately $103.00 on average per person for traditional Valentine’s Day purchases.

Not too shabby for a day’s work, and it’s not even his best year. According to NRF research, spending for Valentine’s Day peaked around 17 billion in 2008, when the average expression of love cost a whopping $123 per person. Since 2009, consumers have been seeking more economical ways to show their loved ones they care. (Total Valentine’s Day spending for 2009 was estimated at $14.7 billion, or $102.50 per person.)

Nonetheless, our battered economy could surely use the financial stimulation.

Wondering where people are putting all those heartfelt dollars and how all this consumerism is affecting the economy? Here is a brief rundown:

Candy

According to the NRF survey, candy will remain a popular item among consumers with 47.2% planning on purchasing candy for their valentines this year. Valentine’s Day candy sales generally account for about 4% of total yearly candy revenue according to the National Confection’s Association. Industry sales estimates for the week of Valentine’s Day in 2009 topped …