For Specialty Retailers, Love Is in the Air
Inc.:
When it comes to matters of the heart, do small businesses have an edge on their larger competitors?
While Christmas, Thanksgiving, and other holidays generally boost sales across most retail categories, Valentine’s Day tends to bring out shoppers seeking more specific items — cards, flowers, chocolates, candles, gourmet dinners and other tokens of affection, categories in which smaller specialty retailers, boutique stores, and online outlets are flourishing, market watchers say.
“When it comes to shopping for their special someone on Valentine’s Day, consumers turn to more sentimental gifts,” says Tracy Mullins, the president of the National Federation of Retailers, a Washington-based trade group.
That’s given a few niche retailers something to look forward to during the February blahs.
“Valentine’s Day is definitely the number one holiday for us,” said Nicole L’Huillier, a spokesperson for The Vermont Teddy Bear Company. Of the $66 million in revenue the former Inc. 500 company made last year, some 30 percent came from Valentine’s Day sales, L’Huillier said. The company typically ships over 100,000 bears for the holiday.
“We’ve really carved out a niche,” she said.
What Vermont Teddy Bear and other smaller specialty retailers are tapping into is a surge in Valentine’s Day spending in recent years. In 2001, consumers spent an average of $82.60 on gifts. Five years later, those gift budgets rose to $100.89, boosting overall spending to more than $13 billion in 2006, according to the National Retail Federation. The only demographic group cutting back on spending is 18 – 24 year olds, the trade association reported.
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Photo by Vermont Teddy Bear.
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