Valentine’s Day spend likely to decline, impacted by pandemic – FNB
DURBAN - Valentine’s Day spend is expected to decline this year amid the Covid-19 pandemic that has strained household budgets and limited entertainment options, according to South African bank FNB.
However, past trends have indicated that consumers have been spending more each year on categories such as chocolates, flowers, general gifts and jewellery.
FNB’s Retail insights showed a 171 percent increase of spend on chocolates during Valentine’s week in 2020, compared to the previous week.
The increase in online chocolate purchases was more than doubled (316 percent) in comparison to the 125 percent increase of the traditional in-store purchases.
In 2020, the spend on flowers increased by 74 percent increase during Valentine’s week versus the preceding week and jewellery spend rose by 35 percent compared to the week prior.
Raj Makanjee, CEO of FNB Retail and Private Banking, said: “Although consumers are faced with financial pressure, our data shows that Valentine’s Day remains a popular period in which people celebrate and spoil their loved ones. This year, we expect a further uptick in consumers who shop online from e-commerce retailers, and we are pleased to be able to support our customers with convenient and safer ways to pay for goods and service, irrespective of where they choose to shop.”
“Our customers are adopting convenient ways to shop and pay, and security remains a critical factor for all purchases. We have been witnessing a greater migration to online purchases than ever before,” said Chris Labuschagne, CEO of FNB Card.
Labuschagne encourages FNB consumers to prioritise money management and to transact on reputable platforms.