Valentine’s Day spending on the rise
Merchants across North America are likely preparing for one of the first consumer holidays of the 2015 year – Valentine’s Day. Retailers across multiple categories, whether they sell clothing, jewelry, chocolate, electronics or anything else, anticipate a flurry of sales activity in the lead up to the holiday. Retailers not only need to stock the right products, but utilize their inventory smartly in order to avoid running out of popular items.
According to one recent report from the National Retail Federation, Valentine’s Day shoppers will be hitting retail stores in a big way. Expenditures are expected to grow from $133.91 in 2014 to $142.31 this year per person, with total Valentine’s Day spending cresting the $18.9 billion mark.
While the usual suspects, such as flowers, jewelry and clothing, will be popular gifts, the survey also noted some other big items, such as gift cards. A surprising number of people are even spending money on pint-sized gifts for their pets.
“It’s encouraging to see consumers show interest in spending on gifts and Valentine’s Day-related merchandise – a good sign for consumer sentiment as we head into 2015,” said NRF President and CEO Matthew Shay. “Hoping to draw in eager shoppers, retailers will offer unique promotions on gifts, meal options at restaurants and even experiences.”
If merchants want to capitalize on sales activity, they will need to manage their inventory carefully. Running out of stock could result in missed sales, so merchants should look to fulfill orders using multiple sources when possible, whether it is a nearby store, a drop shipper or anything else. This will help sellers serve customers more adequately in the long run.