Market environment

Restaurateurs are the only ones to profit on Valentine’s Day

Restaurateurs are the only ones to profit on Valentine’s Day
Photo: Pixabay

Ukrainians try to save their money and are not willing to spend it on expensive gifts for Valentine’s Day. Many people plan to give their loved ones only a postcard.

Scarce earnings

Ukrainians’ pessimistic moods frustrate retailers. Our forecasts are quite upsetting, acknowledges Director of Milavitsa chain of stores Tetyana Vovk. “I hope the sales will grow by an average of 10% compared to the average day. But it is difficult to predict – it will be clear tonight and tomorrow,” she said. Even if the retailer’s expectations are met, the current rates will be much worse than last year. In 2014, on the eve of February 14 the volumes of sales increased on average by 15%.

Customers are quite inactive, agrees co-owner of Zeebra Company Dmytro Yermolenko (Butlers, Six, I am, Glossip and Peacocks chains of stores). “Traditionally, sales are growing three to four days prior to the holiday. This year, it did not happen,” he says. The retailer expects to increase sales by 15 – 20% on the eve of the holiday, whereas, for example, in 2013 the sales increased by 30 – 40%.

Representatives of store chains say it is not easy to get even a slight increase in sales: one has to use a variety of loyalty programs. Many stores offer a 14% discount on all goods, others hold prize draws and giveaways. “The lucky ones will get a diamond,” says owner of Zarina chain of stores Natalia Netovkina. “Adult” stores offer their customers the highest discount rates, up to 50% of the stated price. It is difficult to tempt clients even for them.

Restaurants are sold out

Ukrainians will be spending all money saved for the holiday in cafes, bars or restaurants. “Many tables were booked. We will have a full house,” says Dmytro Borysov (Kanapa, Oxota Na Ovets, Crab’s Burger, etc.). His words were confirmed by Yuriy Semenov, managing partner at U Khromogo Pola, U Golema and Divan restaurants. “Many customers book tables for eight or even twelve people,” he says.

General Director at the Restaurant Consulting Company Olha Nasonova adds that this applies to establishments located both in the central part of the city, and in residential districts. “Traditionally on this day restaurants’ revenue doubles. According to preliminary calculations, this holiday the establishments will be able to make some additional UAH 20 mn,” she said.

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