As the holiday shopping season winds down with gift-card redemptions and gift exchanges, the first “significant spending event of the year,” according to analysts at Telsey Advisory Group, is Super Bowl LII on Feb. 4 followed by Valentine’s Day on Feb. 14.
According to the National Retail Federation, consumers spent more than $14 billion last year during the run-up to the Super Bowl. Over 188 million people watched the game, and 80 percent of expenditures were on food and beverages. Team apparel and accessories garnered the next largest share of spending at 10.7 percent, and was followed by 7.7 percent on decorations.
Some of the apparel companies poised to benefit from the Super Bowl include Fanatics Inc., which bought VF Corp.’s licensed sports group earlier this year for an undisclosed amount. Fanatics operates more than 300 online and physical stores, which includes running e-commerce venues for its sports leagues partners. Its partners include the NFL as well as the MLB, NBA and NASCAR, among others.
Households also used the Super Bowl as a reason to buy a new TV with 7.7 percent of shoppers doling out money for the latest displays, including 4K HD TVs, Smart TVs, OLEDs and LEDs as well as home theater systems, according to the NRF, which noted that more than 24 percent of survey respondents cite the commercials as a key part of the event. The half-time show is also highly anticipated. The next survey on the Super Bowl is due later this month.
But one of America’s favorite pastimes sits behind Valentine’s Day in regard to consumer spending. Last year, shoppers spent more than $4 billion more on the holiday as compared to the Super Bowl, according to the NRF, which noted that department stores take about 35 percent of the total share of spending followed by discount stores at 32 percent and online channels at 27 percent.
After Valentine’s Day, Easter is the next big spending event, and it is placed on the calendar earlier this year taking place on April 1 versus April 16 last year. “This year, Easter is taking place much earlier than last year, which suggests that all Easter sales will occur in the calendar first quarter, rather than being split between the first and second calendar quarters,” TAG analysts said in their report. “An earlier Easter is generally less favorable, given that the weather has not turned in many parts of the U.S. and the pastels of Easter usually sell better with spring weather. In 2017, Easter generated estimated sales of $18.4 billion.”