Dad can expect to be showered with gifts this Father’s Day when spending is expected to reach a record high of $14.3 billion.
In its annual survey conducted this year by Prosper Insights and Analytics, the National Retail Federation said consumers are expected to spend an average of $125.92 for the holiday, up from $115.57 last year. Even though the figure is the highest in the survey’s 13-year history, the total is still dwarfed by spending on Mother’s Day, which was $21.4 billion.
“It’s encouraging to see consumers planning to splurge on dads,” said NRF president and chief executive officer Matthew Shay. “This increase in spending could be a good sign related to consumers’ willingness to spend more as we head into the second half of the year.”
According to the survey, 47 percent of consumers said they plan to spend a total of $3.1 billion on special outings such as dinner, brunch or other types of a “fun activity/experience.” Apparel will be the gift of choice for 43 percent, with gift cards being selected 41 percent — essentially tied at just under $2 billion each. Consumer electronics, which will be given by 20 percent, follow at $1.7 billion. As with Mother’s Day, greeting cards are the most commonly purchased gift at 65 percent but account for only $833 million of the projected spending. Other popular gifts for guys include personal care, automotive accessories, books, music, home improvement/gardening supplies and sporting goods.
The survey found 22 percent of shoppers will choose a “gift of experience” such as tickets to a concert or a sporting event, with two in five Millennials making that choice. And 38 percent of consumers say they will choose a department store, 32 percent will shop online, 27 percent will shop at a discount store, 24 percent at a specialty store and 17 percent at a local small business. Interestingly, 30 percent of smartphone owners will use them to research gifts but only 16 percent will make a purchase that way. But 32 percent of tablet owners will research product and 19 percent will use them to buy a gift.
“After seeing consumers splurge on moms and graduates earlier this year, it’s no surprise that dads are going to enjoy a few more gifts on Father’s Day,” said Prosper’s principal analyst Pam Goodfellow. “No matter what sales or promotions consumers will take advantage of on Father’s Day, they will make sure that the gift is a memorable one for dad.”
The survey of 7,200 consumers was conducted May 2 through 10 and has a margin of error of plus or minus 1.2 percentage points.