Prodco’s Retail Traffic Index for Valentine’s Day 2020 reported a year-over-year increase of 30.98%.
The fact that Valentine’s Day fell on a Friday this year has indisputably played a major role in the increase. The day of the week is the reason at the forefront of why this year’s increase is so noticeable. With that being said, other factors which are thought to have positively affected the numbers include people no longer only offering gifts to family and friends, but also to co-workers and pets.
According to the National Retail Federation, Valentine’s Day 2020 added around $27.4 billion to the economy. This year, consumers were expected to spend on average $196.31 on their loved ones, well over last year’s prediction of $162 per person. New marketing initiatives and many attractive discounts have been created by retailers to improve sales during this season and stay a step a head of Cupid. The effects of which can be noticed in the Lifestyle Apparel segment, which has increased across all regions throughout the United States.
Retailers will be reassured to know that this year again, the No. 1 source of Valentine’s Day gifts is still brick-and-mortar, with 39.96% of people that planned to make their purchase in a physical store, compared to 37.43% expected to shop online from Amazon.
Prodco’s Retail Traffic Index for Valentine’s Day 2020 reported a year-over-year increase of 29.11%.
This year, Canadians were encouraged to go shopping and celebrate, as Valentine’s Day fell conveniently on a Friday. In addition to this, it was followed by a long weekend, with family day (a regional holiday celebrated in many Canadian provinces) falling on the Monday.
Despite shoppers recently favoring experiences over physical items for Valentine’s Day, the data gathered shows that the Lifestyle and Apparel segment lead the way among all segments by reporting a double-digit increase of 42.68%. Within the Lifestyle & Apparel segment, the Quebec region stood out from the crowd and performed particularly well, taking the lead in the overall increase with 67.22%.
Furthermore, we can attribute this significant increase to Canadian retailers putting a lot of effort into marketing campaigns and promotions, boosting sales during this period. Also, according to a recent study conducted by Mastercard, a global positive sentiment towards this holiday has been developed over the years. Indeed, credit card transactions from over 53 countries around the world were analyzed and showed that the “love economy” grew by 17% since 2017; 5 times more than the global economy.
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