The Business of Valentine’s Day

Cleveland, Ohio (Winter 2007/2008) – Consumers are once again expected to show a lot of love this Valentine’s Day. According to the National Retail Federation, total spending this year is estimated to top $16.90 billion, with the average consumer spending nearly $120 on the holiday.

This year, as has been the recent trend, it won’t be romantic spending alone that makes the holiday so profitable for retailers. While the average consumer will focus a bulk of their spending on a romantic partner, family, friends, children’s classmates and teachers and co-workers will also account for some of the heartfelt gifting.

Here are some additional bits of information that the trend experts at American Greetings have uncovered this season:

• A guy thing: Men will once again be the top spenders this Valentine’s Day. The average male is expected to spend more than $156 on the holiday. Women won’t just be receiving however. The average female consumer will spend more than $85 as well.

• Love through the years: The top shoppers this season will be the key 25-34 year old demographic, who are expected to spend nearly $164 on average this Valentine’s Day. Not to be outdone, those 18-24 have increased their participation in the holiday over the past few years, spending more than $143 on Valentine’s Day related purchases. Once the most prolific shoppers in the category, the 45-54 year-old set still knows how to celebrate, spending nearly $108 each on the holiday.

• Tokens of affection: No matter the recipient, greeting cards are still the most popular way to say Happy Valentine’s Day. Among all consumers, greeting cards are the top gift (62.8 percent) with candy (48.4 percent), and flowers (36.7 percent) just behind. Approximately 190 million Valentine’s Day cards will be exchanged this year, not including classroom valentines, according to the Greeting Card Association.

• eValentines: One easy way to spread the love to a wider network of valentines is through the variety of e-cards available for the holiday. AmericanGreetings.com estimates than nearly 10 million e-cards will be sent this Valentine’s Day, with as many as 500,000 sent per hour during peak times via the American Greetings family of Web sites.

• Surprise in the card aisles: This Valentine’s Day, consumers have asked for more variety both in the cards for that special someone and other loved ones, as well as more options for the other special people in their lives.

To meet this need, American Greetings has a new line of valentines perfect for any relationship. One popular offering this year is a new program of 3 for $3 cards that have the shape and size of childhood valentines with fun designs and copy that are perfect for anyone. Other popular themes include non-traditional romantic designs, anti-Valentine’s Day greetings and cards for any stage of relationship, including options for those “just flirting” or newly dating.

Surprising art and copy highlight the non-traditional offerings available this season to meet consumer demand. Many couples have taken to exchanging a fun, offbeat greeting in addition to a more earnest heartfelt card.

• Hearts and flowers: These two icons are at the forefront of anyone’s mind when thinking about the holiday, and with good reason. According to the Society of American Florists, this year more than 189 million roses will be produced for Valentine’s Day. Not to be outdone, the National Confectioners Association notes that this season nearly eight billion conversation hearts will be produced, and more than 36 million heart-shaped boxes of chocolate are expected to be sold.

• Not all hugs and kisses: With more people waiting until later in life to marry, Valentine’s Day has become a day for singles to celebrate as well. While romantic get-togethers are a given, popular restaurants and clubs have seen an increase in business thanks to “singles nights” that take place on the most romantic day of the year as well. Small inexpensive items like gift cards are increasingly popular gifts for the holiday as people reach out to celebrate and show their appreciation for family, friends and colleagues on February 14 th.

The new collection of valentines from American Greetings can be found at participating drug chains, grocery stores and super centers nationwide, as well as in American Greetings and Carlton Cards retail stores. Visit www.americangreetings.com/retailers for store locations.

About American Greetings Corporation
American Greetings Corporation (NYSE: AM) is one of the world's largest manufacturers of social expression products. Along with greeting cards, its product lines include gift wrap, party goods, stationery, calendars, ornaments and electronic greetings. Located in Cleveland, Ohio, American Greetings generates annual revenue of approximately $1.7 billion. For more information on the Company, visit http://corporate.americangreetings.com.