Happy Valentine’s Day to Me! Why Self-Gifting Is on the Rise

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WSJ Your Money Briefing 5 min 2 speakers 7 chapters transcribed 2 months ago
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Why are more people choosing to 'treat themselves' on Valentine's Day?

J.R. Whalen 0:02
Here's your Money Briefing for Wednesday, February 14th. I'm J.R. Whelan for The Wall Street Journal. It's Valentine's Day. The day to give that special someone a heartfelt gift. But for more and more people, that special someone is themselves. And it's not just single people.
Suzanne Kapner 0:26
I spoke to many women who were married who said they like to buy themselves gifts for a variety of reasons. Sometimes the husband doesn't quite know their taste and there's nothing worse than getting that piece of jewelry or other type of gift that you don't really like, but you don't want to hurt their feelings. So it sits in a drawer forever.
J.R. Whalen 0:45
Wall Street Journal reporter Suzanne Kappner will join us to discuss why self-gifting is on the rise this Valentine's Day.

Is self-gifting only driven by single people or do married people participate too?

J.R. Whalen 0:52
That's after the break.
J.R. Whalen 1:05
Valentine's Day isn't just for those in love. A lot of people are spending on themselves, taking a page from Parks and Recreation's Donna and Tom.
Unknown 1:15
Clothes. Treat yourself. Fragrances. Treat yourself. Massages. Treat yourself. Mimosas. Treat yourself. Fine leather goods.

What demographic and cultural trends have contributed to the rise of self-gifting?

Unknown 1:22
Treat yourself.
J.R. Whalen 1:23
Wall Street Journal reporter Suzanne Kappner wrote about how Valentine's Day is getting a makeover, and she joins me now. Suzanne, what sparked this self-gifting trend? Is this something new?
Suzanne Kapner 1:33
Well, it's been building for a few years, mainly because there is a larger percentage of unmarried people in the U.S. According to the Census Bureau, nearly half of U.S. adults were unmarried in 2023. And according to some other research from the Pew Research Center, a large majority of single people are not looking for a romantic relationship.
J.R. Whalen 1:57
Is it just single people giving themselves Valentine's Day gifts?
Suzanne Kapner 2:00
No, and that's the interesting thing. I spoke to many women who were married who said they like to buy themselves gifts for a variety of reasons. Sometimes the husband doesn't quite know their taste and there's nothing worse than getting that piece of jewelry or other type of gift that you don't really like, but you don't want to hurt their feelings. So it sits in a drawer forever. They say that it makes them feel empowered to be able to purchase for themselves. So you are seeing this big uptick in...

How have retailers responded to the growing self-gifting trend for Valentine's Day?

Suzanne Kapner 2:28
Generally women, because on Valentine's Day, it tends to lean heavily towards women purchasing for themselves. But there are some companies pushing men to treat themselves on the day as well.
J.R. Whalen 2:39
What does this mean for retailers?
Suzanne Kapner 2:40
Well, this could be a good thing for retailers because Valentine's Day sales kind of slumped last year. They were down about 4% or so. And similar to other kind of more minor holidays like Easter, Mother's Day, all of these sort of secondary holidays, sales did decline last year. And the thinking, according to Circona, the market research firm, is that consumers have been a little more cautious in their spending. They're pulling back on some non-essential spending.
J.R. Whalen 3:10
Is there more you can tell me about why Valentine's Day sales have declined?
Suzanne Kapner 3:14
There are other reasons as well. You know, during COVID, people were giving more practical gifts. I spoke with Marshall Cohen, who's the chief industry advisor at Cercana. He said vacuum cleaners suddenly became an acceptable gift during COVID.

What do sales and market data say about recent declines and recovery opportunities for Valentine's Day retail?

Suzanne Kapner 3:28
And so people, to treat themselves, they were buying the romantic gifts for themselves. And this has kind of continued in the post-COVID world.
J.R. Whalen 3:37
A vacuum cleaner as a gift sounds like it might not work in any other scenario other than during the pandemic.
Suzanne Kapner 3:43
Some of the people I've talked to, women said their husbands gave them dish towels as a gift and socks. You know, the gift giving had become maybe a little more practical, a little less romantic.
J.R. Whalen 3:54
I guess love comes in all different forms, doesn't it? Now, you did some research on Target and Etsy among retailers that are responding to this. What are they doing?
Suzanne Kapner 4:03
Well, you've got companies like Target, which is promoting in its circulars T-shirts and sweatshirts with giant hearts on them. And the language it's using to promote these items is fake. fit for the whole fam or just you, meaning you don't have to buy this for a loved one.

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