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Submitted by Atlas Indicators Investment Advisors on February 13th, 2025

Happy Valentine’s Day!  It’s the day when people express their love for those nearest to their hearts. How is that expression made in America?  Mostly with money.  According to the National Retail Federation (NRF), Valentine's Day spending in 2025 is projected to reach a record-breaking $27.5 billion, an increase from the $25.8 billion spent in 2024, and slightly surpassing the previous record of $27.4 billion set in 2020.  It seems like this year, the tune of "Money (That's What I Want)" by Barrett Strong is echoing through the hearts of Americans.

 

This surge in spending reflects a growing enthusiasm for the holiday, with 56 percent of consumers planning to celebrate, up from 53 percent the previous year. The average shopper plans to spend $188.81, a slight increase from $185.81 in 2024, indicating a continued willingness to express love and appreciation. 

 

The most popular gift categories for Valentine’s Day 2025 include the obvious choices: candy, flowers, greeting cards, an evening out, and jewelry.  Americans are planning to spend a total of $6.5 billion on jewelry, $5.4 billion on dining out, $2.9 billion on flowers, $2.5 billion on candy, and $1.4 billion on greeting cards. 

 

This year, there's a notable trend towards celebrating not just romantic partners but also friends, co-workers, and even pets!  Thirty-two percent of consumers plan to purchase something for their animals.  Valentine's Day has turned into a love fest for everyone, including Fido and Fluffy.  It makes one wonder if the Beatles were the only ones believing that you “Can’t Buy Me Love?”   

 

The NRF survey also highlights that men are more likely to participate in Valentine's Day this year, with 55 percent planning to celebrate, up from 51 percent in 2024. This increase in male participation could be contributing to the overall rise in spending.  Additionally, the top shopping destination for Valentine's Day gifts remains online, with 38 percent of consumers planning to shop this way, followed by department stores, discount stores, and florists.  

 

Instead of hearing the hum of Cupid’s bowstring, the modern romantic clicks the "add to cart" button.  This trend towards convenient online shopping suggests that Americans are edging ever closer to what they really want for the holiday.  Perhaps the Flying Lizards’ more minimalist interpretation of “Money (That’s What I Want)” remains the most appropriate version in 2025, reminding us that, in the end, it's all about the money, honey.

Tags:
  • Beatles
  • Consumption
  • Money
  • Valentine's Day

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