Cash-strapped shoppers tone down Valentine's spending

02.13.09
By Lewis Green

Recession-minded consumers looking for ways to cut back on their spending in 2009 are making no exception for Valentine's Day, research reveals.

According to the National Retail Federation, the average person plans to spend $102.50 on their Valentine this year, down from the $122.98 they planned to spend in 2008.

Cupid will not have given up on shopping completely, but he will be toning down the total amount spent, the findings suggest.

"While some Americans will forego a gift and opt for quality time at home instead, others will simply set budgets and fixed amounts when exchanging presents," said Phil Risk of BIGresearch, which conducted the survey.

The trend is part of a larger shift in Americans' consumption which has seen consumers devoting more money toward savings and paying off credit card debt than toward new purchases.

Retailers, who may be still smarting from an exceptionally poor holiday season of sales, may not be expecting much from the first holiday of 2009.

Although retail sales saw an unexpected increase in January, rising by 1 percent, experts say the trend is likely due to deep post-Christmas discounts and probably won't continue. Economic indicators such as continuing lay-offs and falling house prices have not painted a bright picture for the next few months.

However, some analysts suggest people may use the romantic day as an excuse to forget their credit card debt and indulge a bit.

"You can disappoint Aunt Mable over the holidays by not giving her a gift, but if you disappoint your significant other on Valentine's Day, you're going to be hearing about it every day for a long time," Loch Rose, vice president of analytics at ShopLocal.com, told USA Today.

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People will spend less on their Valentine this year