Dollar stunts Valentine’s celebration, as prices soar

The prices of gifts and mementos including pastries, chocolates, wine, perfumes, wristwatches, jewelry and bright red costumes, typically given out at the feast of love – Valentine’s Day, have shot up markedly, promising to dim the lights on the celebration which has gained great popularity among Nigerians over the years.

This is as a result of the falling value of the naira against the US dollar, a spin-off of the crash in crude oil prices, and the outcome has been a significant hike in the prices of most consumer goods, Nigeria being an import dependent economy.

Valentine’s Day, also known, as Saint Valentine’s Day or the Feast of Saint Valentine is a celebration observed on February 14 each year, and it comes up this Sunday. It is celebrated in many countries around the world, although it is not a public holiday in most countries.

Approximately 150 million Valentine’s Day cards are exchanged annually, making Valentine’s Day the second most popular card-sending holiday after Christmas. A BusinessDay survey in some Lagos malls shows that consumer turnout for Valentine’s shopping has been very low, despite discounts on some gift items.

Some mall operators who spoke with BusinessDay expressed deep worries over the impact of the dollar restriction, which they say, has greatly reduced their sales, this Valentine’s. 

Judith Nwachukwu, assistant supervisor at Park n Shop Spar, in Victoria Island, Lagos, said patronage was low. 

“Business is bad this year because of the exchange rate of the dollar which has affected most of our prices. The prices of most of our items did not go up because we still have old stocks. We just increased the price of our cards slightly from N100 to N120 and a flower which was N250, now costs N280”, she explained.

Even with an over 17% discount on some selected items, Nwachukwu said consumers are still not forthcoming. 

“For Valentine’s promo, we reduced the price of our Givenchy perfumes because they are old stock. The one that was sold for N20,000 is now N17,000. Givenchy for men was N21,500 but now N18,275 and Givenchy for women, which was N24,000, is N20,400 presently. Still, no customer is coming close to the perfume section. They just walk in to buy food items or toiletries,” she lamented.

BusinessDay findings at Park n Shop Spar showed that consumers were going for wristwatches because of durability. 

“We have more promos on wristwatches, just a slash in price because customers are now thinking smart. They are buying more of wristwatches because they say it lasts longer than perfumes”, Nwachukwu added. 

A survey conducted by our reporter showed that the prices of imported perfumes had shot up by about 25 percent. At Mega Plaza, a bottle of Gucci perfume which sold for N36,000 in December, now sells for N45, 000. Also, the Giorgio Beverly Hills perfume which sold for N12,000 around November, now goes for N15, 000.

At a floral shop in Mega Plaza, the manager who does not want her name in print was visibly troubled about her turnover this year.

“This time last year, I sold so many flowers with cards but this year is terrible. I have not sold any this year and I cannot discount my flowers like I usually do during valentine because of the dollar,” she said sadly.

“Our last supply was in December, so the increase in the value of the dollar did not affect the price of our items. We get more patronage compared to other dealers because our prices are cheaper but sales this year are not encouraging. Our supermarket was crowded this time last year, but sales this year are very poor”, a sales supervisor at Goodies supermarket told BusinessDay.

Rachael Atunrase, acting manager in one of the shops in Apapa Mall is optimistic that sales will look up as they plan to attract more buyers and boost sales with promotional offers.

“We are getting more of window shoppers for now, but hopefully by Friday or Saturday, even on Sunday, serious customers should start showing up. The price of our items increased slightly, the perfumes we sell for N10, 000 now go for N12, 000 because of the dollar problem. We will have discounts on some items for valentine; this should attract more customers and increase our sales as well”, Atunrase said. 

Eighty-five percent of consumers who spoke with BusinessDay are indifferent about the Valentine celebration. While some said they have low-key plans, others said the celebration is the least of their worries. 

A resident in Ajao Estate area of Lagos, who simply introduced himself as Asagba said, “I’m not doing any Valentine’s shopping because I have more critical things to spend money on with the limited cash at my disposal.” 

“Currently, I have needs that must be met and Valentine’s is definitely not one of them. My children’s’ fees and rent that will be due in a couple of months, top the list, so I’m not even thinking about Valentine this period. That Valentine’s money could be used to purchase food items for the family”, Robert, another resident in Port Harcourt observed.

“I know things are tough but I plan giving my family a treat this Valentine’s day in my own small way. I will just take them out to somewhere nice because I was too busy to do that last year”, Chineme Ekeghalu, who resides in Owerri, said.

Tayo who lives in Ogba area of Lagos said, “My budget focuses on important things, especially now the price of everything is increasing and my salary is not. Valentine’s spending is a waste of resources.”

As Valentine’s day inches closer, mall operators can only hope that consumers will take advantage of their promotional offers to enjoy a memorable time with their loved ones, amid the present economic difficulties.

CHINWE AGBEZE