Lover's bliss or financial miss?

Sonya Khanna

Business Editor

In the words of the love-obsessed cartoon skunk Pepe Le Pew, “le sigh,” love is in the air.

I might be mistaking the aura of love with the scent of cash oozing out of the wallets of love-struck men and women splurging on the hallmark holiday, but at the end of the day, aren’t the two pretty much interchangeable?

As consumers actively seek out l’amour, retailers are cashing in on the  business of love.

A recent survey by the National Retail Federation on Valentine’s Day Consumer Intentions and Actions for 2012 suggests that the average consumer will shell out roughly $74.12 on their spouse or significant other, up from last year’s $68.98.

The average male is expected to spend a total of $168.74 for the holiday on all his gift recipients, roughly twice as much as women, who will fork out an average of $85.76.

Maybe in theory your love doesn’t cost a thing, but hypothetically, speaking as if we were to place a price tag on it, let’s ballpark it at $126.03.

Items responsible for drilling holes in the wallets of Valentine’s enthusiasts include everything from token items, purchase lasix such as flowers, chocolates, jewellery and greeting cards, to special menu items at restaurants and clothing.

Categories that experienced the largest year-over-year growth in sales were candy and jewellery, which experienced a jump of 15 per cent and 12 per cent, respectively.

According to the President and CEO of NRF, Matthew Shay, an upward trend on consumer spending for Valentine’s Day suggests positive economic movement, with the survey results reaching the highest level in a ten-year history.

“As one of the biggest gift-giving holidays of the year, it’s encouraging that consumers are still exhibiting the desire to spend on discretionary gift items, a strong indication our economy continues to move in the right direction,” said Shay.

Consumer activity isn’t limited to merely adults.

“Celebrated by children who give Valentines to their teachers and classmates, family members who make sure to send greeting cards across the miles and couples who wish to show their appreciation for each other, Valentine’s Day means more than what’s simply on the surface,” said Pam Goodfellow, Consumer Insights Director at BIGinsight. “This year we could very well see some consumers searching high and low and stopping at nothing to make sure their loved ones receive the perfect gift.”

The bulk of consumer traffic is expected to be through discount stores and department stores; online retailers will also acquire a humble share of holiday spending frenzy, clobbering up nearly 19.3 per cent of the consumer activity.

Spending in Western Canada seems to trump that of in other regions of the country, with Saskatchewanians professing their love in a financially cumbersome fashion, spending 19.3 per cent more than in 2010.

Although an upward trend in consumption has been exhibited, BMO economist Jennifer Lee forecasts stagnating future trends due to the sluggish Canadian job market and continued uncertainty in global markets.

British Columbia and Newfoundland, for example, hosted seemingly romantically challenged consumer behaviours, with Valentine’s Day spending from 2010 to 2011 decreasing 0.2 per cent and 0.62 per cent, respectively.

These negative Valentine’s Day consumption trends seem to be mere outliers as nation-wide data suggests the opposite to be true, with Canadians basking in the joys of the holiday.