Indeed, we’re all reciting love sonnets to the success of Valentine’s Day 2021, as 2020 has dulled so many financial arrows! With the Valentine’s holiday holding court as the first major holiday & sales week of the year for jewelers, it’s safe to say that a successful Valentine’s Day in 2021 will be a key indicator for the year ahead.
Although sales forecasts for Valentine’s Day are not yet in, there are many positive indicators for strong jewelry sales in 2021.
Let’s look at the previous year’s spending and trends:
According to the NRF’s 2020 Valentine’s Day Forecast
– Shoppers planned to spend $5.8 billion on jewelry (given by 21 percent), $4.3 billion on an evening out (34 percent), $2.9 billion on clothing (20 percent), $2.4 billion on candy (52 percent), $2.3 billion on flowers (37 percent), $2 billion on gift cards (19 percent) and $1.3 billion on greeting cards (43 percent). Gifts of experience such as tickets to an event or a trip to a spa were planned by 28 percent.
Given the effects that COVID-19 has on dining out (planned by 34%), tickets to events and trips (planned by 28% ) – it appears that people will look for other ways to spend money, and what could be better than the purchase of keepsake, precious jewelry?
Additionally, sixty percent of the jewelers who responded to InStore’s final 2020 Holiday Season Mini Survey said they beat their 2019 holiday sales – which was, of course, before the COVID-19 pandemic hit – with more than two-thirds describing their store’s performance as either “better-than expected” or “terrific”.
Drivers for increases holiday jewelry sales included:
- house-bound consumers with cash on hand thanks to travel restrictions
- people looking to express their love for close ones during a difficult time
- a renewed focus on community ties, including supporting small business owners
- a change in shopping patterns with more shoppers browsing online but being more deliberate in their purchasing when they made it into the store
So how do we “count the ways” toward a successful Valentine’s Day in 2021? Here are a few ideas to help you plan:
1. Look Back to Plan Ahead
- What were your key items for Valentine’s Day sales in 2020?
- What were your top selling items for the 2020 Holidays?
- It’s not to late to stock up on key items.
Sterling Tip: Silver is the key jewelry trend that was seen on the runways for 2021 & a perfect gift for Valentine’s Day
2. Understand Target Spending Thresholds
According to the National Retail Federation (NRF), an average Valentine customer in 2020 spent almost $200 – which was up almost 21% versus the prior year. Valentine week is NOT a time to take up valuable display cases with low-cost items. The difference between displaying more $200 plus gifts versus taking up prime space with $100 gifts can make or break the bank in 2021.
Sterling Tip: Silver jewelry offers a variety of price points along with great margins.
3. Understand Your Customer Mix
The NRF’s survey concluded that ages from 18-24 planned to spend an average of $109.31. But ages from 25-34 expected to spend $307.51 and are topped out by the age group from 35-44 as the biggest spenders at $358.78. As in each year of the survey, men plan to spend more than women at $291.15 compared to $106.22
Also, today’s customers are purchasing extra Valentine gifts for co-workers, children, teachers, friends, and even pets! In fact, 50% of all Valentine sales are purchased for recipients other than a romantic partner! Creating and displaying gifts for each of these segments will entice your customers to one-stop-shop at your store.
Sterling Tip: Silver jewelry offers affordable price points, perfect for gifts for friends & co-workers.
4. Enhance and Advertise Contactless Shopping
It’s quite certain that COVID will continue to be on your customers’ minds in 2021. Even if business is relatively back to normal, you’ll still benefit by offering safe and contactless shopping options for those who still want to remain distanced. Feature key gift suggestions along with your other services on your web site: i.e., free gift wrapping, rose bouquets from the local florist, etc. This is the time to advertise delivery service, enhanced online shopping, curbside order pickup along with a safe, personalized in-store shopping experience.
Sterling Tip: Silver studs with diamond or stone accents were key items for the 2020 holidays.
Valentine’s Day Trivia
It is estimated that 9 million marriage proposals will take place on Valentine’s Day 2021.