Research from the Australian Retailers Association (ARA), in conjunction with Roy Morgan, shows 3.4 million Australians will be buying gifts in the name of love this year, down 700,000 from 2023.
While the overall spend and number of Valentine’s Day shoppers is tipped to fall this year, those who are gift-giving are set to splash out $135 per head, considerably more than last year (up from $118 in 2023 or 14.4 per cent).
In fact, of those who are planning to purchase a Valentine’s Day gift, almost a quarter say they will be spending more, while 57 per cent will spend around the same and 19 per cent will spend less.
ARA CEO Paul Zahra says cost-of-living pressures are set to have a significant impact on Valentine’s Day this year.
“With 700,000 less Australians planning to buy a gift for a loved one this Valentine’s Day, it’s clear just how much of an impact the rising cost of living is having on households,” he says.
“The 18–34-year-old demographic will spend significantly less on Valentine’s Day this year, driving much of the decline. They’re typically the age group most affected by interest rates and the cost-of-living pressures.
“With the financial pressure that Australians are under, flowers remain the go-to gift, cementing their status as a staple of the Valentine’s Day experience. They’re a sentimental token of love and affection that can be tailored to any budget without breaking the bank.”
These predictions follow an already subdued Christmas, with Australian retail sales increasing a modest 0.8 per cent year-on-year in December 2023.
“With household budgets under pressure, Christmas in 2023 was somewhat subdued compared to previous years—a result of cost-of-living challenges. We aren’t seeing the year-on-year growth that we did in previous years.
“The rising popularity of Black Friday also impacted December’s trading, with many Australians opting to purchase their Christmas gifts earlier during the major sales event in November,” Zahra adds.
“With high interest rates and increasing costs for families, we’re continuing to see a softening in discretionary spending.”
