Valentine's Day is upon us and industry research firm IBISWorld has released its annual holiday sales forecasts. Because Valentine's Day falls on a Sunday, the research firm anticipates an 8 percent increase over last year's restaurant spending, as consumers will move from traditional gift-giving toward dining out.
"Because Valentine's Day lands on a Sunday, restaurants are likely to gain traffic throughout the entire weekend," said Toon van Beeck, senior analyst with IBISWorld, in a news release. "Furthermore, because President's Day is on the following Monday, many consumers will be able to travel over the three-day weekend, further boosting restaurant sales."
With consumers dining out and traveling, Valentine's Day will not be as joyous for retailers. Men typically buy candies, flowers and jewelry during the work week, but since the holiday falls on a Sunday they will not feel as much pressure to purchase by Valentine's Day. As a result, they are not as likely to take the time on the weekend to shop, opting instead for a romantic dinner out.
"Many retailers will see Valentine's Day as an opportunity to kick start the new year, but the unemployment rate and continued uncertainty of the economic recovery will hamper growth and expansion," explained van Beeck. "This combined with the fact that the holiday is a discretionary purchase, IBISWorld expects customers to remain on the shopping sidelines for the second consecutive year."