UK sales on Valentine’s gifts and cards are set to reach the £1 billion mark, but many will be seeking discounts this year.
Whilst consumers are set to spend generously this Valentine’s Day, latest research from GlobalData Retail indicates that sales growth is expected to slow to 0.7 per cent this year, compared with 1.4 per cent in 2017.
Weakened consumer confidence and tightened household budgets are seen as key contributors to this decline, as well as the growing popularity of discount stores and online retailers. Valentine’s Day is also becoming a less popular event, with less than a third of shoppers considering it an important occasion, and 31.7 per cent hoping to avoid the day all together.
Eleanor Parr Retail Analyst for GlobalData, remarks: “Although in the past Valentine’s Day was seen as an opportunity to spoil loved ones and shower them with luxury gifts, with 45.8% of consumers last year thinking Valentine’s Day is a waste of money and 56.2% believing it costs too much, consumers are expected to be more willing to receive and shop for cheaper gifts at discount players.
“After a successful year for many discounters in 2017, these retailers are likely to gain further share in the Valentine’s Day market as they continue to improve consumer perception of their ranges by introducing more luxury options alongside their value assortments.”
We wish all our retail clients a successful and productive Valentine’s week. And remember that, in this competitive environment, business owners must work hard to win customer loyalty, adapt to the ever-changing customer demands, increase productivity and strengthen their market position.
As specialist advisers to retail businesses, we remain committed to helping you with strategic planning, business turnaround and improving business performance for the future.