Valentine's Day in the "New Economy"

February 1, 2010, 1:50 PM

The reality of how people choose to spend their more limited dollars in our “new” (read cash-poor) economy continues to reveal itself with each passing holiday. First, the buzz was all about retail spending around Christmas – would it be more, or less? More online or more in stores? And so on.

With Valentine’s Day just around the corner, a number of unusual gifting options are popping up that indicate a societal shift away from the traditional, often expensive, romantic offerings.

First, many stores and online retailers are having “pre-holiday sales”. That’s right, some stores are putting their Valentine Day goodies on sale BEFORE the big day . . . not the traditional day after (when every holiday-specific item is 50 percent off!)
Non-traditional “special occasion” restaurants—sandwich shops, burger barns and pizza palaces – are offering low-end options to dining out on Valentine’s Day. (Imagine . . . a romantic dinner for two for under $10!!)
Finally, the King of Retailers, Macy’s, is running a promotion called “Sweetest Tweets” where people sending love notes of 140 characters will be entered into a drawing for a diamond ring. (Not to mention that everyone entering this no cost contest is now connected to the giant retailer!)

These are just a few of the ways companies are figuring out how to be profitable in a new era where being frugal is the new chic! If you are a retailer, think about how you might put a variation on the Valentine Day theme to boost your sales. To check out more information on the ideas above, see this article, published January 27 in the New York Times.

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