Valentine’s Day is set to be worth just over £1bn in 2020, up 0.6% on 2019 as shoppers spend on this occasion remains squeezed by low disposable incomes and consumer confidence, according to GlobalData, a leading data and analytics company.
Food and drink purchased for a romantic meal at home continues to be the greatest opportunity for retailers to entice spend on this occasion with a large proportion opting to stay in. Retailers can capitalise on this with meal deals and recipe ideas with a focus on premium ranges. Morrisons has successfully implemented this this year with its £15 Valentine’s Day meal deal for two, including a three course meal and wine. Its online advertising visualises this deal as a restaurant menu appealing to those hoping to create a restaurant-like experience at home, giving it a more premium touch.
Zoe Mills, Retail Analyst at GlobalData, commented: “Consumers with partners can feel obliged to participate in Valentine’s Day but those that wish to do this in a cost effective way will turn to more affordable solutions such as dining at home. This is good news for the grocers who will be hoping to combat the lull after Christmas. Yet with consumers looking for the best value for money, the food and drink market for Valentine’s Day is only forecast to grow by 0.7% in 2020, compared to +1.3% in 2019.”
The Valentine’s Day gifting market is the largest category in this occasion, but is forecast to perform poorly with just 0.6% growth in 2020. Retailers are hoping to combat this by targeting an alternative audience, taking inspiration from China’s Single’s Day (11 November) to appeal to those not coupled up with self-gifting.
Mills concludes: “Single’s Day in China has been a massive success, and retailers in the UK are trying to open up Valentine’s Day to a wider audience. Retailers should include self-gifting in their marketing campaigns for Valentine’s Day to appeal to more individuals while still targeting the traditional audience with gifts for him/her.”