Valentine’s Day may be only recently over but with planning for Valentine’s 2025 happening, new data from e-commerce provider Visualsoft is worth looking at. It shows that “revenue increased for retailers in the run up to [the] day, but that brands and stores are having to work harder to capture sales”.

And Senior Digital Strategist Immy Ewbank said that the ‘lipstick effect’ is in full flow: “Even in a cost of living crisis people will still treat themselves or others with small luxuries which helps to boost their mood. Because of this, customer loyalty and win back opportunities are more important than ever.

“For brands, now is the time to get your loyalty scheme with ‘refer a friend’ incentives set up, and gift guides polished. Smaller items, or ‘little luxuries’ can be perfect items for thoughtful and cost effective gifts, consider any upsell moments for smaller items to boost your Average Order Value. And as we’re living in an immediate consumption cycle, next day delivery with a reputable courier can be a big confidence builder for shoppers while they’re deciding where to purchase.”

So what actually happened this season? In the key sectors of jewellery, fashion, gifts, health, lingerie, and beauty, Visualsoft said there’s “a trend for higher revenue year on year, but lower Average Order Value, suggesting that retailers are needing to attract more sales to have the same effect”.

Fashion revenues were strong with a 33% uplift. But it was interesting that categories more usually associated with this shopping season rose by a smaller percentage and one key category even fell.

The report said health, beauty & cosmetics category rose 20%, and lingerie & underwear increased by 10%. But jewellery, “a go-to staple for this time of year”, actually dripped by 0.5%. 

Yet the overall picture was positive with revenue above inflation for almost all sectors. The report authors said this “could point to people purchasing for themselves, embracing ‘galentines’ and ‘palentines’, wanting to look good through fashion, or simply not buying expensive presents that the holiday has become synonymous with”.

As mentioned, with Average Order Value, “smaller basket sizes are the norm”. In fact, basket size in fashion has shrunk 15%, with beauty down 2%, jewellery down 11.%, and lingerie & underwear plummeting 24%. 

“Retailers are having to get more visitors and more transactions to grow their sales, as customers tighten their belts amidst a cost-of-living crisis. This seems to show a clear shopping pattern of people shopping around and leaning towards cheaper items over potentially expensive named brands,” we’re told.

Some people may also be responding to the belief that Valentine’s Day is “too consumerist [and] shying away from grand gestures”. But people do seem to want to “celebrate in some small way”. Visualsoft thinks this could be behind the 164% increase in the search for ‘promise rings’ and 23% for ‘charms’.”

The study also showed mobile orders being strong in fashion (73%), health beauty & cosmetics (55%) and jewellery (74%). However it seems “a more considered purchase” is made with lingerie & underwear where only 18% of orders are mobile.

Ash Wright, VP of Commercial at Visualsoft, said: “With shoppers on the go using small pockets of time to look for purchases, and seeking deals wherever they can, it seems people are shopping around more, not necessarily locked into a certain name or brand of item that they want. Strong advertising on social media and email marketing can drive mobile shoppers to a site and as long as it has a smooth and seamless checkout system, this can boost sales from impulse buying. 

“Brand loyalty seems to be on a decline especially with younger audiences, and as such retailers are having to offer deeper discounts at the same time as communicating values and ethics in order to attract them — a tricky balance. Yet the fact that there are more transactions, of smaller amounts, suggests that for those willing to work for it, repeat shoppers are where growth is at.”