Merchants will see an increase in Valentine’s Day sales, but the Sunday event is likely to mean even more business for restaurants, according to one holiday forecast.
IBISWorld, a Los Angeles market research firm, forecasts Valentine’s Day retail sales to reach $17.6 billion, up 3.3 percent from 2009.
Because the Feb. 14 holiday falls on a Sunday, IBISWorld anticipates consumers to move from traditional gift-giving towards dining out.Â
 “Restaurants are likely to gain traffic throughout the entire weekend,” said Toon van Beeck, senior analyst with IBISWorld. “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 travelling, Valentine’s Day will not be as joyous for retailers, the forecaster said. Men typically buy candies, flowers and jewellery 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.Â
IBISWorld said research from the Society of American Florists shows that Sunday is the worst day for florists come Valentine’s Day, therefore making this year’s sales especially bleak.
“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,” van Beeck said.Â
