Father's Day Spending to Hold Steady

June 6, 2008

Source: The Merchandise Group


Father's Day is quickly approaching, which has many retailers wondering exactly how the current economic climate will affect consumer spending. The Washington, D.C.-based National Retail Federation and Worthington, Ohio-based BIGresearch LLC recently released their 2008 Father's Day Consumer Intentions and Actions Survey to uncover the key factors impacting consumers today.

"The fact of the matter is gas prices are high, grocery bills are increasing and we’re entering the summer months when energy prices will also start to increase,” said Phil Rist, vice president of strategy for BIGresearch. “Quality time with family and friends will be important this Father’s Day as opposed to larger, more expensive gifts."

According to the survey, three out of four adults plan to celebrate Father's Day, spending on average $94.54, slightly down from last year's $98.34. Total spending is anticipated to reach $9.6 billion. The survey also revealed that 48.2 percent of consumers plan to buy something for a father or stepfather this year; while 27.7 percent will purchase a gift for their husband, 7.6 percent will buy for their son, 4.5 percent will get something for their grandfather, 5 percent will buy for a friend and 1.2 percent will purchase a gift for their godfather.

The types of treats for Father's Day varied as well. 41.4 percent of consumers plan to take their dad out on a special outing, only spending on average $20.19. Other consumers reported plans to buy a broad range of gifts for dad, including 36.5 percent to purchase clothing, 22.6 percent to pick up books and/or CDs, 32.7 percent will get dad a gift card; while 13.3 percent will be spent on sporting goods and 18.5 percent will buy consumer electronics or computer accessories. Greeting cards are a holiday mainstream purchase, with 68.4 percent of individuals planning to get dad a greeting card, spending on average $7.49.

So, where will consumers be purchasing these items? According to the survey, 32.5 percent of consumers plan to purchase Father's Day gifts at department stores, with 31 percent visiting discount stores, 28.1 percent to go to specialty stores, 18 percent to purchase items online and 7.9 percent to buy gifts at specialty clothing stores.

In addition, Richmond, Va.-based Circuit City recently released its Father's Day survey, conducted by Arlington, Texas-based Decision Analyst Inc. The survey was specifically catered to 4,100 fathers throughout the United States. In it, they found that 52 percent of dads preferred a consumer electronics gift for Father's Day, while only 16 percent of dad's wanted clothing, 13 percent asked for sports gear, 9 percent wished for a vacation and 8 percent of father's said they did not want a Father's Day gift at all this year.

Cell phones rated highest on the survey, with 93 percent of dads wanting a new phone for the holiday. GPS navigation was another popular item, with 75 percent of father's reporting that GPS is somewhat or very important for summer road trips.

While survey results can often be nebulous, utilizing data that pertains to your small business can help you adjust store offerings to meet consumer demands. In this way, your business will be better prepared for the holiday and yield increased sales!

Father's Day Spending to Hold Steady

June 6, 2008


Source: The Merchandise Group

Father's Day is quickly approaching, which has many retailers wondering exactly how the current economic climate will affect consumer spending. The Washington, D.C.-based National Retail Federation and Worthington, Ohio-based BIGresearch LLC recently released their 2008 Father's Day Consumer Intentions and Actions Survey to uncover the key factors impacting consumers today.

"The fact of the matter is gas prices are high, grocery bills are increasing and we’re entering the summer months when energy prices will also start to increase,” said Phil Rist, vice president of strategy for BIGresearch. “Quality time with family and friends will be important this Father’s Day as opposed to larger, more expensive gifts."

According to the survey, three out of four adults plan to celebrate Father's Day, spending on average $94.54, slightly down from last year's $98.34. Total spending is anticipated to reach $9.6 billion. The survey also revealed that 48.2 percent of consumers plan to buy something for a father or stepfather this year; while 27.7 percent will purchase a gift for their husband, 7.6 percent will buy for their son, 4.5 percent will get something for their grandfather, 5 percent will buy for a friend and 1.2 percent will purchase a gift for their godfather.

The types of treats for Father's Day varied as well. 41.4 percent of consumers plan to take their dad out on a special outing, only spending on average $20.19. Other consumers reported plans to buy a broad range of gifts for dad, including 36.5 percent to purchase clothing, 22.6 percent to pick up books and/or CDs, 32.7 percent will get dad a gift card; while 13.3 percent will be spent on sporting goods and 18.5 percent will buy consumer electronics or computer accessories. Greeting cards are a holiday mainstream purchase, with 68.4 percent of individuals planning to get dad a greeting card, spending on average $7.49.

So, where will consumers be purchasing these items? According to the survey, 32.5 percent of consumers plan to purchase Father's Day gifts at department stores, with 31 percent visiting discount stores, 28.1 percent to go to specialty stores, 18 percent to purchase items online and 7.9 percent to buy gifts at specialty clothing stores.

In addition, Richmond, Va.-based Circuit City recently released its Father's Day survey, conducted by Arlington, Texas-based Decision Analyst Inc. The survey was specifically catered to 4,100 fathers throughout the United States. In it, they found that 52 percent of dads preferred a consumer electronics gift for Father's Day, while only 16 percent of dad's wanted clothing, 13 percent asked for sports gear, 9 percent wished for a vacation and 8 percent of father's said they did not want a Father's Day gift at all this year.

Cell phones rated highest on the survey, with 93 percent of dads wanting a new phone for the holiday. GPS navigation was another popular item, with 75 percent of father's reporting that GPS is somewhat or very important for summer road trips.

While survey results can often be nebulous, utilizing data that pertains to your small business can help you adjust store offerings to meet consumer demands. In this way, your business will be better prepared for the holiday and yield increased sales!