The impact of Valentine's Day on small businesses

Valentine’s Day sales often provide a significant boost to small businesses, especially in industries like floristry, confectionery, dining, and personalized gifts. 

The holiday creates an opportunity for local shops to attract customers with creative offerings and promotions, driving both foot traffic and online sales. For many small businesses, this seasonal demand can represent a vital revenue spike during the slower post-December holiday months.

Higher sales volumes.

The primary impact of Valentine’s Day on small businesses is higher sales volumes. Consumers tend to spend more over this period. 

For example, the average customer intended to spend around $185 on Valentine’s Day in 2024, with surveyed individuals associating the word “shopping” with the day 131% more often than the word “love.” Some 53% of consumers got involved, proving just how mainstream the day has become. 

Furthermore, the growth in Valentine’s Day sales volume is also rocketing. Valentine’s Day spending came in at $25.8 billion in the U.S. in 2024, up from $21.8 billion in 2021, indicating a growth of over 18% in just three years. 

Sales volumes may continue to accelerate. Surveys indicate continued increases in spending up to 2030 and beyond. 

A point-of-sale (POS) system can help small businesses maximize Valentine’s Day sales by streamlining transactions, managing inventory, and enabling targeted promotions. With real-time data, businesses can track best-selling items and adjust stock accordingly to meet customer demand.

Higher transaction values.

Higher transaction values are another impact of Valentine’s Day on businesses. Consumers tend to make larger purchases at this time of year. 

For example, expensive jewelry purchases are common around this period. Affluent buyers sometimes spend thousands of dollars on rings, necklaces, and other items to show their spouse or partner how much they love them. According to the most recent data, total spending on Valentine’s Day jewelry exceeded $6.2 billion in 2024, with 21% of shoppers buying in this category.

High-value experiential purchases are also common. Lovers want to lavish each other with fine-dining restaurant meals, boat cruises, and trips abroad.

These expenses represent an opportunity for the catering, hospitality, and services industries. 

Greater product purchase variety.

Product purchase variety also impacts small businesses around Valentine’s Day. While some consumer spending goes toward jewelry, the patterns are quite diverse. 

For example, 57% of shoppers plan to buy candy around Valentine’s Day, now the most popular gift. This category includes chocolate boxes and truffles. 

Greeting cards are also popular, with 40% of surveyed consumers considering purchasing them. However, only 37% of planned purchases are flowers.

Significant experiential gift spending.

The trend toward experiential gift-buying could also impact small businesses on Valentine’s Day, given the growing popularity of these adventures. Surveys suggest that 41% of individuals prefer these gifts, such as dining or events, to jewelry.  

Paradoxically, evidence suggests that only 32% of consumers plan on buying these gifts. This indicates a mismatch between what people want, and what they buy for each other. While many consumers want to go out and have fun on Valentine’s Day, traditional gifts like chocolates, flowers, and jewelry still dominate. 

As such, the industry may expand further. Brands could exploit the fact that more people want experiential services, spurring more partners and spouses to treat their loved ones to fancy restaurant meals or hotel stays.

Unexpectedly high millennial consumer spending.

Millennial spending may also impact small businesses on Valentine’s Day. The 35 to 44 age group spends more than any other, including wealthy Boomers. 

The primary reason for this high spending is expectations. Millennials expect each other to splash out around Valentine’s Day. 

Furthermore, Valentine’s Day was a significant part of the culture for this age group during childhood. While their boomer parents spend modestly at this time of year, the event means a great deal for millennials culturally. 

Overall, data suggests the 35 to 44 age category spends around $335 per person over the Valentine’s Day period. This figure compares to an average of just $142 for other age groups. 

Evolving purchasing methods.

Finally, Valentine’s Day purchasing methods could affect small businesses. How consumers spend their money matters more than ever. 

For example, 35% of Valentine’s Day shoppers plan to spend their money online, highlighting the growing role of ecommerce stores. 

Meanwhile, 18% say that they plan to support local businesses instead. This group believes that the ability to make cash payments is critical.  

As such, small businesses should adapt their payment processing protocols. Accepting a wide array of payment methods is essential. 

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