LOCAL ECONOMIC SNAPSHOT | VALENTINES DAY

The price of love

By SHERYL JEAN
Staff Writer sjean@dallasnews.com

Thursday is a day of love one that comes with a big economic kiss. Loathed by some as a Hallmark invention, the day still sees millions of people exchange gifts and consume buckets of champagne. Valentines Day, which ranks among the top holidays for consumer spending, is expected to generate more than $18 billion in U.S. sales this year. Its not all about money: Six million Americans plan or expect a wedding proposal this Valentines Day, according to American Express.

Valentines Day forecast

The average person will spend $130.97 on Valentines Day this year, up from last years $126.03, according to the National Retail Federation. Total spending is expected to increase 5.7 percent to $18.6 billion. (Other estimates put this years total spending at nearly $21 billion.) Men will spend more: an average of $175.61 vs. $88.78 by women. Either way, affordable candy and owers will be this years big winners.

A SAMPLING OF EXPECTED SPENDING

Jewelry $4.4 billion

PERCENTAGE OF GIVERS
Candy Flowers Jewelry Clothing Gift cards 19.7% 15.6% 15% 36.6% 51%

Flowers $1.9 billion

Clothing $1.6 billion

Candy $1.6 billion

Gift cards $1.5 billion

The shape of holiday spending

Valentines Day ranked No. 3 for the most holiday spending in 2010 the latest data available from IbisWorld Inc. This year, most shopping (39.6 percent) will be done at discount stores, reecting consumers price consciousness. Most people give gifts to a signicant other, but they also include other family members, co-workers and pets. HOLIDAY Christmas Thanksgiving Valentines Day Mothers Day Easter Fathers Day Halloween $30.5 $17.6 $14.9 $14 $10.2 $6 2010 SPENDING (In billions) $135.2

Send a greeting
Americans spend about $7.5 billion on greeting cards a year. Valentines Day is the second-largest card-sending holiday after Christmas. This year 62 percent of people will use some type of technology to send a romantic message. HOLIDAY Christmas Valentines Day Mothers Day Fathers Day Graduation Easter Halloween Thanksgiving St. Patricks Day 145 million** 133 million 90 million 67 million 57 million 21 million 15 million 7 million * Includes boxed cards ** Excludes kids classroom valentines NUMBER OF GREETING CARDS 1.6 billion*

Texas chocolate makers

Valentines Day is big business for chocolate companies. Nationally, more than 58 million pounds of chocolate candy (worth $345 million) are sold during Valentines week. The number of places that make chocolate and cocoa products in Texas and across the country has fallen in the last decade, but they employ more people. NUMBER OF ESTABLISHMENTS
60 50 40 30 20 10 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

50 44 38 42 39 37

48 43 42 37

SOURCES: American Express; Candy Industry magazine; Greeting Card Association; IbisWorld; National Confectioners Association; National Retail Federation; Nielsen; SymphonyIRI; U.S. Census Bureau

The bottom line

Its the most bonkers holiday of the year. Theres no real planning for Valentines. Im always looking to do something different, so this year Im making these giant, anatomically correct hearts. Its a bit of a risk on this one. I make them one at a time, and Im shooting to sell 200. Its the largest single day in the oral industry. Valentines is basically unaffected by the recession. The hardest part of the holiday is the logistics to deliver the product when the customer wants it. People want owers delivered at the workplace between 9 and 3. Although the economy is better this year, I think many consumers still will be watching their wallets on Valentines Day. I expect candy and owers to outsell more expensive gifts such as jewelry and weekend getaways. Anyway, its the thought that counts.

Katherine Clapner, co-owner, Dude, Sweet Chocolate in Dallas

Bruce McShan, owner, McShan Florist in Dallas

Sheryl Jean, staff writer, The Dallas Morning News