The companies feeling the love this Valentine’s Day

Written by Abby Glennie, deputy head of smaller companies, abrdn 

Valentine’s Day, originally a celebration of Spring, fertility and all things Cupid-related, has become a vital shot in the arm for retailers to inject some much-needed life back into the quiet post-Christmas period. 

In order to broaden the shopping opportunities, Valentine’s goodies are now available for your sweetheart and your ‘galentines’ and ‘palentines’. The happy news for retail companies is that despite the undoubted cost-of-living crisis driven by soaring inflation, consumer spending on discretionaries is proving to be resilient. 

Retailers have seen good results recently, indicating that consumers, despite the high cost of food, fuel and energy bills, are still willing to spend at the shops. Activewear is always in fashion, so companies like JD Sports continue to perform well. Coats is another business benefitting from the desire to have not just new items in the wardrobe, but eco-conscious ones. It produces the sustainable thread that many brands are increasingly using to boost their green credentials.

Environmentally minded shoppers are increasingly buying pre-loved items, helping to reinforce the circular economy. Auction Technology Group is the platform for a growing range of US and UK re-sale websites, well stocked with the interesting arts and antiques for the Valentine gift giver in search of something different. 

For those who want to be extremely generous, Watches of Switzerland continues to be a popular destination, holding up well against the ever-increasing growth of online shopping. Although 70% of its sales are for waitlist items, the stores always carry a selection of watches and jewellery to save the day for the last-minute shopper.

High rates of pet ownership and resilient levels of spending on our furry friends mean that specialist pet companies, such as Pets at Home, are thriving. The range of products that owners want to buy for their pampered pooches and moggies continues to grow and grow, from toys and beds to specialist food and grooming sessions at the new, in-store ‘groom rooms’. No doubt, devoted owners will be buying the pet in their life a gift… could this be the start of Pawentine’s Day? 

For everyone who has had enough of pink-themed ribbons, hearts and merch, not to mention winter, maybe a foreign break is the ideal gift. Companies such as Jet2 are reporting that holiday bookings have been very strong so far this year, perhaps highlighting the need to ‘get away from it all’ post-pandemic, despite the living-cost pressures. 

Looking at the resilience being demonstrated by sound companies with a strong offering, we believe the consumer isn’t just here for Valentine’s Day, strong retail businesses should make for rewarding investments over the longer term.