Consumers are saving more and spending less, according to our latest retail data. But Aussies aren’t letting the rising cost of living steal the romance this Valentine’s Day. While spending is considerably lower compared to last year, Australians are looking for more unique ways to make the holiday special for their loved ones.

The financial pressure Australians are facing has given rise to more personalised displays of affection over the more traditional gifts. As a result, savvy retailers must adapt to the evolving needs of consumers, offering more conscious gifting suggestions such as experiences and discount codes.

Insights on Valentine’s Day spending in 2024:

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• Inflation remains top-of-mind: The rising cost of food (41%) and restaurant menu pricing (40%) are the top factors impacting Valentine’s Day plans, closely followed by gift pricing (39%).
• Experiences lead the charge: Despite the rising costs of eating out, 64% of Aussies plan to celebrate with a romantic restaurant dinner, compared to 49% in the US and 57% in the UK. Further, 23% of Aussies reported planning to celebrate with a quiet evening at home, followed by 21% planning alternative celebrations such as a holiday or travel experience and indulging in self-care services. These findings indicate a desire for meaningful experiences over traditional gifts. When it comes to gifting, too, an evening out (46%) is the top choice for Aussies.
• Consumers opt for traditional gifts: Following an evening out, flowers (41%), jewellery (35%) and clothing (26%) are among the top gifting choices for consumers. Australians don’t have much of a sweet tooth this Valentine’s Day, with sweets and candy accounting for just 23% of Aussies’ gifting plans.

What do these insights mean for you?
Economic uncertainty has undoubtedly caused a dip in spending compared to previous years. Customers are shifting toward more meaningful experiences and seeking value in their purchases. While spending is far more tempered, there is opportunity for retailers to adapt their focus toward creating more memorable experiences.

Customer retention comes down to knowing your customers. Understanding their needs, preferences, profiles, and histories is the first step in building loyalty. Begin with what you have – your customer data – to meet your customers at the right moment. That’s how you create customer experiences that keep shoppers engaged at peak holiday moments, like Valentine’s Day, and throughout the retail year.

To explore all of Salesforce’s holiday insights, check out our calendar of major retail holidays.