Valentine's Day Spending Sets Retailers' Hearts A-Flutter

Retailers are expecting to feel the love this Valentine’s Day. Americans are expected  to spend nearly $18 billion this year, according to a survey by the National Retail Federation. This is up from the $16 billion that was forecast last year, perhaps another sign that the economic recovery is gaining traction.

The NRF forecasts that the average Valentine’s celebrant will spend $126, up 8.5 percent over last year and the highest in the survey’s 10-year history.

Valentine’s Day ranks as one of the year’s third-biggest gift-giving holiday following Christmas and Thanksgiving (Mother’s Day and Easter round out the top five). “It’s encouraging that consumers are still exhibiting the desire to spend on discretionary gift items, a strong indication our economy continues to move in the right direction,” NRF President and CEO Matthew Shay said in a statement.

Spouses and partners are the biggest recipients of Valentine’s Day spending. The average person is expected to spend $74 on their “better half,” up from $69 last year. Consumers are forecast to spend an additional $25 on their children, parents, or other family members. And let’s not forget out pets. Pet owners are expected to spend about $4.50 on their beloved companions.

Men are the biggest Valentine’s Day spenders. They are expected to shell out nearly $169—nearly twice as much as women--on clothing, jewelry, greeting cards and other Valentine goodies.

Nineteen percent of celebrants will buy jewelry this year, up from 17 percent in 2011 and the highest percent in the survey’s history, the NRF finds. Thirteen percent will present gift cards. Half will buy candy, while 36 percent will buy flowers and nearly 36 percent will be taken for a night out.

Total spending on jewelry is expected to reach $4 billion, up from $3.5 billion last year, the survey projects, with $3.5 billion to be spent on the year’s ultimate date night (Restaurants are expected to see a 6 percent boost in sales to an estimated $9.5 billion, according to a Valentine’s Day survey by IBIS World). Consumers are also expected to spend $1.8 billion on flowers, $1.5 billion on candy, $1.4 billion on clothing, and $1.1 billion on gift cards.

Discount stores are expected to see the most traffic (37 percent), while one-third of shoppers will buy their gifts from department stores. There is expected to be a boost this year in online Valentine’s Day shopping, 19 percent, up from 18 percent last year.

It is possible to have a frugal Valentine’s Day. Flexo, founder of the blog Consumerism Commentary, offers several money-saving tips, including making your own greeting cards, skipping the gourmet chocolate and opting instead for fruit, establishing a romantic mood by lighting candles and switching off electric appliances, and passing on the gourmet dinner.

You'll save money alright, but it may just cost you your Valentine.