Valentine's Day spending hits record high

As Valentine's Day approaches, consumers are set to break spending records, with total expenditures expected to reach $27.5 billion, according to the National Retail Federation (NRF) and Prosper Insights & Analytics. This marks a significant increase from last year's $25.8 billion and surpasses the previous high of $27.4 billion set in 2020. On average, shoppers plan to spend $188.81, up slightly from 2024's $185.81.

"Whether they are celebrating a significant other or someone else in their lives, Valentine's Day is meaningful for many people," said NRF Vice President of Industry and Consumer Insights Katherine Cullen. "Consumers are looking for special ways to treat their loved ones and can expect retailers to provide the best gift options and deals.

More consumers, more spending

Over half (56 percent) of consumers plan to celebrate Valentine's Day this year, up from 53 percent in 2024. Notably, men are showing increased enthusiasm for the holiday, with 55 percent indicating plans to participate, up from 51 percent last year.

Popular gift choices remain consistent, with candy (56 percent), flowers (40 percent), and greeting cards (40 percent) topping the list. Experiences also rank high, as 35 percent of consumers plan an evening out, contributing to an estimated $5.4 billion in spending on dining and entertainment. Meanwhile, jewelry sales are projected to reach $6.5 billion, making it the most lucrative category.

Spending on significant others continues to drive the holiday's financial impact, hitting a record $14.6 billion. Family members are also seeing increased gifting, with expenditures projected to reach $4.3 billion. Interestingly, gifting beyond romantic partners and family is growing in popularity, with a record 32 percent of consumers buying for friends and 19 percent for co-workers. Even pets are getting their share of the celebration, with 32 percent of consumers planning to purchase gifts for their furry companions.

A strategic opportunity for retailers

For retailers, Valentine's Day presents an important sales window, particularly for small and medium enterprises (SMEs) looking to capitalize on seasonal demand. Scott Dawson, CEO of DECTA, emphasized the role of payment solutions in maximizing sales opportunities.

"To capitalize on this demand, businesses must ensure they offer seamless and flexible payment options, both in-store and online," Dawson said. "Consumers expect convenience, personalization, and a frictionless shopping experience across all channels."

As economic uncertainty persists, retailers that provide flexible and digital payment options stand to benefit the most. Dawson noted that a well-integrated payment system can enhance the customer experience, provide valuable insights, and drive revenue growth.

Love versus money? A playful take on Valentine's Day

Adding a lighthearted twist to the holiday, MuchBetter, a fintech company specializing in wearable payment technology, conducted a survey asking whether love or money brings more happiness. The results? More than 44% of respondents chose love, while only 10 percent prioritized money. However, younger generations showed a more pragmatic view, with 18 percent of 16-to-24-year-olds favoring financial security over romance.

Derrick Lynagh, Head of Strategic Sales and Partnerships at MuchBetter, commented on the findings: "This survey highlights how deeply personal and complex the relationship between love and money really is. For some, financial security is a cornerstone of happiness, while for others, love outweighs everything."

While some may debate the merits of love versus financial stability, one thing is clear: Valentine's Day spending is thriving. As consumers continue to invest in meaningful gifts and experiences, retailers and businesses that cater to evolving shopping behaviors stand to gain the most from this season of love.

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