Author: Helen Thomas

May 7, 2014

The health of housing is key for the overall state of the U.S. economy and housing stands poised to serve as an engine of job growth with the right policies in place, the National Association of Home Builders (NAHB) told Congress today.

Testifying before the Senate Banking Committee’s Subcommittee on Economic Policy during a hearing examining the drivers of job creation, NAHB economist Robert Dietz said that home building and remodeling have generated 274,000 jobs over the past 2 1/2 years.

“This expansion has direct economic benefits,” said Dietz.  “Housing provides the momentum behind an economic recovery because home building and associated businesses employ such a wide range of workers.”

Employment from new home construction and remodeling has a wide ripple effect.  About half the jobs created by building new homes are in construction.  They include framers, electricians, plumbers and carpenters.  Other jobs are spread over other sectors of the economy, including manufacturing, retail, wholesale and business services.

NAHB analysis of the broad impact of new construction shows that building 1,000 average single-family homes generates:

• 2,970 full-time jobs
• $162 million in wages
• $118 million in business income
• $111 million in taxes and revenue for state, local and federal governments

Similarly, construction of 1,000 rental apartments, including units developed under the Low Income Housing Tax Credit, generates 1,130 jobs while $100 million in remodeling expenditures creates 890 jobs.

Currently, housing comprises about 15.5 percent of GDP but Dietz said the industry still has room to grow.

“Typically, housing represents 17 to 18 percent of the GDP,” he said.  “With a growing population and an aging housing stock, NAHB forecasts that single-family construction will increase 22 percent in 2014 to 760,000 units and multifamily production will rise 6 percent to 326,000 units.”

Noting that 2014 should be the first year since 2007 in which total housing starts exceed 1 million homes, Dietz said this expansion will produce jobs.  “In April alone, home builders and remodelers added 13,100 jobs,” he said.

NAHB estimates that total housing construction over the next few years should return to just under 1.7 million combined single-family and multifamily starts on an annual basis.

Homeownership also represents the most important investment and source of savings for most middle class households.  The latest economic date show that the primary residence represents 62 percent of the median home owner’s total assets and 42 percent of their wealth.  Moreover, almost two-thirds of all U.S. households own a home, while just 50 percent possess a retirement account and only 16 percent own stocks and bonds.

Though homeownership remains a cherished American ideal, access to safe and decent affordable rental housing is needed for those households for whom rentng is the best choice.  The Low Income Housing Tax Credit, the nation’s only affordable housing production program, serves a critical role in this regard.  Since its inception, the tax credit has produced and financed more than 2 million affordable rental apartments.

Industry Faces Several Challenges

While home construction is poised to continue to expand and add jobs, builders continue to face persistent headwinds.  These include access to buildig lots, rising building material prices, access to builder loans and worker shortages in some markets.

Additional challenges are the lack of policy certainty in areas connected to housing.  To help the industry play its traditional role as a job creator, Dietz called on Congress to ensure that undue regulatory burdens do not hinder economic and job growth.  “Regulations imposed by the government at all levels account for 25 percent of the final price of a new single-family home built for sale,” he said.

On the tax front, Dietz urged lawmakers to protect the mortgage interest deduction and Low Income Housing Tax Credit, which are critical to ensuring the growth of the middle class and access to affordable housing, and to enact a tax extenders bill that would retroactively extend expired tax rules such as the minimum 9 percent credit rate for the Low Income Housing Tax Credit and residential energy efficient tax credits for new construction and for retrofitting existing homes.

“Passing comprehensive housing finance reform that includes a federal backstop to ensure the availability of the 30-year mortgage, increase private capital in the marketplace and protect the American taxpayer would be a net positive for job creation,” he added.

Source: National Association of Home Builders 

May 6, 2014

Office Depot said it plans to close 400 of its 2,000 stores as it looks to realize efficiencies related to its merger with OfficeMax.

An estimated 150 of the stores will close this year, according to the company, which reported first quarter results and continued weakness in same store sales.  The company anticipates that the closures will generate annual run-rate synergies of at least $75 million by the end of 2016 and will begin to be accretive to earnings in 2015.

Total reported sales for the quarter were $4.4 billion compared to $2.7 billion in the first quarter of 2013, and were 3% lower than combined pro forma sales of $4.5 billion in the first quarter of the prior year.

The company reported an operating loss of $79 million and a net loss attributable to common stockholders of $109 million, or $0.21 per share.  The operating loss included special charges totaling $151 million, which were made up of $96 million in merger-related expenses, $41 million in non-cash IT-related impairment charges, $9 million in non-cash store impairment charges, and $5 million in international restructuring and other operating expenses.  The tax effect of these pretax charges was $4 million.  In the first quarter of 2013, the company reported operating income of $10 million and a net loss attributable to common stockholders of $17 million, or $0.06 per share.

“We are pleased with our first quarter performance.  After a weather-challenged start to the year, sales trends improved as the quarter progressed, and we exceeded our expectations for both cost reduction and operational execution,” said chairman and CEO Roland Smith.  “With our new organizational structure established and leadership team largely in place, the execution on our critical priorities is improving, and we are delivering merger integration synergies more quickly than anticipated.  Accordingly, we have increased our full year 2014 outlook for adjusted operating income to be not less than $160 million from our prior outlook of not less than $140 million.”

The company’s North American Retail Division reported sales in the quarter of $1.8 billion compared to $1.1 billion in the first quarter of 2013, reflecting the inclusion of OfficeMax sales in the first quarter of 2014.  On a combined pro forma basis, first quarter 2014 sales declined 5%, and same-store sales declined 3% versus last year.  Same-store sales decreased primarily due to lower transaction counts partially offset by higher average order values.

Meanwhile, the Business Solutions Division reported sales of $1.5 billion in the quarter compared to $0.8 billion in the prior year period, reflecting the inclusion of OfficeMax sales in the first quarter of 2014.  On a combined pro forma basis, sales declined 2%.

International Division reported sales of $1 billion in the quarter compared to $0.8 billion in the proir year quarter, reflecting the inclusion of OfficeMax sales in the first quarter of 2014.  On a combined pro forma basis, sales declined 1% in constant currency.

For the remainder of 2014, Office Depot continues to expect that market trends will remain challenging across the company’s product lines and distribution channels, and therefore continues to anticipate total company sales in 2014 will be lower than 2013 combined pro forma sales.  The expense deleverage from lower sales is expected to offset a portion of the merger synergies and operating improvements anticipated during the year.  Based upon earlier than expected realization of cost synergies and improved operational execution in the first quarter, the company now expects to generate adjusted operating income of not less than $160 million in 2014 compared with its prior outlook of not less than $140 million.

Including at least $75 million in annual run-rate synergies from the optimization of the U.S. retail store portfolio, the company also raised its estimated total annual run-rate of synergies to more than $675 million by the end of 2016, compared to its prior outlook of more than $600 million.  Of those synergies, the company now expects to realize approximately $180 million during 2014, and end the year with an annual run-rate of approximately $360 million, not including any benefit from the retail store network optimization.

The company also continues to estimate that $400 million of cash merger integration expenses will be required during the three-year period of 2014 through 2016 to substantially complete the integration, excluding costs related to optimizing the U.S. retail store portfolio, which have not yet been determined.  Approximately $300 million of these cash integration expenses will be incurred in 2014.  The company continues to anticipate integration capital spending of approximately $200 million to $250 million during the 2014 through 2016 period.  In 2014, the company expects capital spending to be approximately $150 million, excluding up to an additional approximately $50 million in integration expenditures.  Depreciation and amortization is expected to be approximately $300 million in 2014.

Source: Retailing Today 

May 5, 2014

Walgreens posted April sales of $6.49 billion, an increase of 8.8% from $5.96 billion for the same month in fiscal 2013.

Total front-end sales increased 8.8% in April compared with the same month in fiscal 2013, while same-store front-end sales increased 8.2%.  Customer traffic in comparable stores increased 2.6% while basket size increased 5.6%.

For the combined March/April period that includes the Easter holiday season impact, comparable store front-end sales increased by 2.1%, while customer traffic in comparable stores decreased 0.9% and basket size increased 3%.

Prescriptions filled at comparable stores increased by 3.5% in April and increased 4.3% on a calendar day-shift adjusted basis.  April 2014 had one additional Wednesday and one fewer Monday compared with April 2013.  The retailer noted that the calendar shifts negatively impacted prescriptions filled at comparable stores by 0.8 percentage point.

April pharmacy sales increased by 9.2%.  Comparable store pharmacy sales increased 7.3% and increased by a calendar day-shift adjusted 8.1%.  Calendar day shifts negatively impacted pharmacy sales in comparable stores by 0.8 percentage point.  Calendar day-shift adjusted comparable store pharmacy sales were negatively impacted by 1.3 percentage points due to generic drug introductions in the last 12 months.  Pharmacy sales accounted for 64.5% of total sales for the month, the company stated.

Sales in comparable stores increased by 7.6% in April.  Calendar day shifts negatively impacted total comparable sales by 0.5 percentage point.  Generic drug introductions in the last 12 months negatively impacted total comparable sales by 0.8 percentage point.

Sales for the combined months of March and April 2014 increased 6.6% from the same two months in 2013.  Comparable store sales for the March/April period increased 5.5%.

Source: Retailing Today

May 2, 2014

Despite severe weather-related issues during the first quarter, CVS reported “solid results” across the enterprise and executives expressed optimism in achieving 2014 goals.

“It is unusual to hear us talk about the impact of weather on our business.  Historically, it has been our practice to not blame the weather when we explain our results, but this quarter the amount of severe weather was so abnormal that, quite frankly, it is hard not to talk about it,” Larry Merlo, president and CEO told analysts during Friday morning’s conference call to discuss results.  “…While disappointed that the severe weather put a damper on an otherwise excellent quarter, we remain very confident in our outlook for the full year.”

Net income during the quarter rose 18.3% to $1.1 billion, compared with approximately $1 billion in the year-ago period.  Adjusted earnings per share for the three months ended March 31, 2014 and 2013, was $1.02 and $0.83, respectively, an increase of 22.5%.

Net revenues for the three months ended March 31, 2014, increased 6.3% to $32.7 billion versus the year-ago period.

Revenues in the pharmacy services segment increased 10.3% to $20.2 billion during the quarter, primarily driven by growth in its specialty pharmacy business, including the acquisition of Coram, as well as drug cost inflation, new clients and new products.

Speaking of the specialty pharmacy business, Merlo told analysts that it remains strong with revenues up about 34% year-over-year.  He noted that the integration of Coram is “going well,” as the sales forces are being aligned and integrated products are being developed.

Merlo also said that the rollout of its new Specialty Connect offering is expected to be completed at the end of the quarter.  Specialty Connect is analogous to Maintenance Choice as it connects mail and retail capabilities to provide choice and convenience for members.

“We are positioned to continue to gain share in the fast-growing specialty marketplace as we developed innovative offerings that capitalize on our unique ability to optimize cost, quality and access,” Merlo told analysts.

Revenues in the retail business increased 2.7% to $16.5 billion during the quarter.  Same-store sales increased 1.4% with pharmacy same-store sales up 3.8% and front store same store sales down 3.8%.  Both front same-store sales and pharmacy same-store sales were negatively impacted by a weaker flu season in the three months ended March 31, 2014 and severe weather across much of the United States, compared with the prior year, the company stated.

Despite the decline in front same-store sales, front store basket size improved modestly while front store margins improved notably during the quarter.  The increase in total same-store sales was primarily driven by the growth of prescription volumes and brand name drug cost inflation.  Pharmacy same store sales include a negative impact of approximately 120 basis points from recent generic drug introductions, the company noted.

Merlo stressed the importance of developing a sustainable front-end strategy and said that, as rivals increased promotional activity, CVS/pharmacy reduced its circular ad blocks year-over-year by about 6%.

“As a result of staying true to our targeted promotion strategy, I’m pleased to say that we saw growth in our average basket size, along with notable growth in our front store margin in the quarter.  Of course, we would like to see better front store comps but it is important that we have a sustainable front-end strategy.”

For example, through insights from its ExtraCare loyalty program and its predictive modeling for personalized emails, it has experienced email open rates that are two times the industry average and response rates that are five times the industry norm.  Furthermore, the CVS/pharmacy ExtraCare Beauty Club is enjoying the impact of personalization as it has engaged 13 million of the company’s best beauty customers, and the members are spending more than twice as much as the average beauty customer.

With regard to MinuteClinic, revenues were up 11.4% during the quarter.  There are currently 828 clinics in operation with plans to open at least 150 new clinics this year.  Of the new openings, about one-third will be in new markets.

Looking ahead, CVS Caremark confirmed its earnings guidance range for the full year 2014 and expects to deliver adjusted EPS of $4.36 to $4.50 and GAAP diluted earnings per share from continuing operations of $4.09 to $4.23 in 2014.  The retailer also continues to expect to deliver 2014 free cash flow of $5.5 billion to $5.8 billion, and 2014 cash flow from operations guidance of $7 billion to $7.3 billion.

“All the ongoing changes that we are seeing in the healthcare environment are certainly creating unique opportunities for CVS Caremark.  Our unmatched model in innovative solutions makes us well positioned to capitalize on these opportunities and we believe creates a sustainable competitive advantage,” Merlo told analysts.

Source: Retailing Today

May 5, 2014

Last week: Perhaps the biggest news in this data-heavy week is the rebound in wage growth.  Factories and stores, idled by winter weather, were back in business in March.  The jobs report shows they continued to catch up in April.  But as The Conference Board’s Leading Economic Index has been signaling for months, this is more than just a weather story.  The economy is getting stronger.  And the proof will come over the coming weeks as consumers gain more confidence and spend more (especially on long-delayed replacement items).  And perhaps there will be more business investment in the equipment needed to get the job done.

Employment Trends Index, March (The Conference Board)

This index does for the labor market what the Leading Economic Index does for the general economy.  The labor market is rebounding now.  Does this forward indicator show more underlying strength this summer, once the catch up is completed?

Fact Of The Week

As of late April 2014, according to the Drought Monitor, all of California is now in moderate to exceptional drought – for the first time in a decade and a half.  This is a big deal.  How big?  It could result in as many as 20,000 lost jobs and 800,000 acres of idle farmland.  Indeed, the worst drought conditions happen to be in the normally crop rich Central Valley.

The estimated costs could approach $7.5 billion.  But that’s not all.  A limited supply of food is sure to send its cost higher.  In this era of deflationary pressure, that might be the biggest deal of all.  We could have the Federal Reserve setting out on an expansive monetary policy to counter deflationary pressure while food prices skyrocket, resulting not just in a hit on the average household budget but causing consumers (taxpayers) to do more than complain.  Finally, it is not just California.  Western and/or southwestern states are dealing with a multi-year drought that is not letting up this spring and probably won’t let up during this crop-growing summer season.  Only Montana and Wyoming,  and of course northeastern Washington have escaped these conditions.

Source: The Conference Board

May 5, 2014

The Conference Board Employment Trends Index increased in April.  The index now stands at 118,000, up from 117.77 (an upward revision) in March.  This represents a 5.5 percent gain in the ETI compared to a year ago.

“April’s increase in the Employment Trends Index, and continued improvement in recent months, is signaling solid growth through the summer,” said Gad Levanon, Director of Macroeconomic Research at The Conference Board.  “Despite the disappointing GDP figure for the first quarter, job growth remains robust and when coupled with the massive retirement of baby boomers will result in a continued rapid decline in the unemployment rate.”

April’s increase in the ETI was driven by positive contributions from five of its eight components.  In order from the largest positive contributor to the smallest, these were: Percentage of Firms with Positions Not Able to Fill Right Now, Number of Temporary Employees, Industrial Production, Job Openings, and Initial Claims for Unemployment Insurance.

The Employment Trends Index aggregates eight labor-market indicators, each of which has proven accurate in its own area.  Aggregating individual indicators into a composite index filters out “noise” to show underlying trends more clearly.

The eight labor-market indicators aggregated into the Employment Trends Index include:

• Percentage of Respondents Who Say They Find “Jobs Hard to Get” (The Conference Board Consumer Confidence Survey)
• Initial Claims for Unemployment Insurance (U.S. Department of Labor)
• Percentage of Firms With Positions Not Able to Fill Right Now (National Federation of Independent Business Research Foundation)
• Number of Employees Hired by the Temporary-Help Industry (U.S. Bureau of Labor Statistics)
• Ratio of Involuntarily Part-time to All Part-time Workers (U.S. Bureau of Labor Statistics)
• Job Openings (U.S. Bureau of Labor Statistics)
• Industrial Production (Federal Reserve Board)
• Real Manufacturing and Trade Sales (U.S. Bureau of Economic Analysis)

Source: The Conference Board

May 2, 2014

The labor market remains surprisingly and resiliently strong, as evidenced by the gain of 288,000 new jobs created in April.  The gain this month was aided by some catch up – hiring that perhaps would have happened earlier if not for the widespread inclement weather.  But that is only one part of the story.  Indeed, the more important part is that the economy has been gathering strength for some time.  The signals from the surveys of purchasing managers and The Conference Board Leading Economic Index have been pointing to some acceleration for months.  Weather, sequestration, a significant buildup of inventory and other factors have helped bottle up some of this strength.  Now, it would appear, the absence of these factors is finally allowing the economy’s underlying strength to come to the surface.  The result is not just a relatively strong gain in jobs in April but probably more of the same in May and June and perhaps right through the summer.  And more jobs means more pay checks, lifting sentiment and spurring more spending.  The business response will be to lift investment in equipment.  With consumption and investment picking up some steam, more new jobs will keep opening up.  In fact, it could be enough to send the unemployment rate below 6 percent late in the second half of the year.  Another outcome: discouraged job seekers going back into the labor market.  And that is an even better marker for how much improvement is in economic conditions and prospects.

Source: The Conference Board

April 23, 2014

Many economic discussions – especially those following the Great Recession – have focused on the short-term or immediate economy, particularly in regard to the labor market.

However, longer term issues regarding investments, hiring and other business decisions cannot be lost in our thinking about the economy and its direction.  While most of us don’t necessarily think or plan 10 years out, it remains vitally important to economists, retailers, policymakers and the consuming public to think about the future while creating budgets, plans or sales projections.

Fortunately, the U.S. Bureau of Labor Statistics provides information about the future with its Employment Outlook report that it issues every two years with a 10-year projection of employment and output.

Since the last BLS report, the economy has notably improved and is now poised for more sustained growth.  As the economy expands, long term patterns of growth and industry activity can be more readily observed and the BLS’ estimates and projections become valuable to retailers and others who need to make decisions about the future economy, employment and consumer spending.

So where will eht jobs be 10 years from now?

In the coming decade, BLS projects that the “retail trade” sector is expected to increase by more than 1 million jobs to a total of about 16 million jobs by 2022.  In fact, retail is projected to be one of the top three domestic industries for future employment opportunities – behind only construction and health care.

The projected growth in the retail industry – pegged at 0.7 percent annually – reflects the healthier pace of consumer spending at 2.6 percent (higher than the 1.8 percent of the last decade) and a strengthening economic recovery.  BLS assumes that the economy will grow by 2.6 percent per year, unemployment will drop to 5.4 percent and productivity gains will increase 2 percent a year (idealistic for sure but feasible).

Demographic Changes Abound

While the retail industry’s jobs increase isn’t as dramatic as those in construction and health care (retail already has a large employment base), the three growth sectors are all inter-related.

As housing and residential construction increases to accommodate a growing population, construction will continue to gather steam.  Increases in new units built and the replacement of old housing should pay dividends to retailers who will help buyers fill those homes – think appliances, furniture and garden supplies.

America’s rapidly aging demographic – baby boomers – are also spurring job growth in medical service fields.  An aging population and expanded medical insurance coverage (Obamacare) are factors the BLS incorporated into its projections.  Again, retailers – especially those selling health and personal care products – will play a critical role in that demand.

What is readily apparent from a review of the BLS report is the important role demographic changes are making in the economy.  While demographics have always played an important role in economic decisions, they are now becoming a centerpiece for discussion.

One of the most dominate changes is that the labor force participation rate among older workers is expected to continue its decline.  As the baby boomers (those born between 1946 and 1964) head into their retirement, fewer will be part of the American labor force, lowering the participation rate and slowing labor growth and economic activity.

This demographic change – while anticipated – is especially important for retailers.  As an individual ages, purchases change.  Retailers should take some time to prepare for these changes and remain ever-vigilant and responsive.

Source:National Retail Federation

May 1, 2014

For 11 years now, the National Retail Federation has gauged consumers’ spending intentions on America’s favorite holidays like Valentine’s Day, Mother’s Day, Halloween and of course, Christmas.

During that time, Halloween has grown to become one of the most popular holidays of the year, average spending on back-to-school items has increased 31 percent since 2004 , and Thanksgiving Day has officially become a bona fide shopping day for millions of bargain-hungry Americans.  So, how do holidays “rank” when it comes to consumer spending?  Here’s how each holiday ranks as of the release of the latest Mother’s Day survey:

Winter holidays: As the largest gift-giving holiday of them all, the winter holidays account for nearly 20 percent of total annual retail sales for retailers.  In 2013, holiday celebrants spent an average of $730 on gifts, food, decorations and more.  After all was said and done, NRF found that holiday sales increased 3.8 percent to $602 billon.  More than 90 percent of Americans celebrated Christmas, Kwanza or Hanukah last winter, the most celebrated season of the year.

Back to school/College: Spending on pencils, backpacks, denim, college dorm furniture and collegiate wear, tablets, smartphones and notebooks costs mom and dad hundreds of dollars on average and a total of $72.5 billion last year.  But savvy parents know bargains are not hard to find.  Almost every sector of retail plays a role: drug stores, thrift stores, electronics stores, department stores, discount stores and even grocery stores for penny-pinching college students and their parents.

Mother’s Day: Consumers say they will spend an average of $163 this year – $19.9 billion total – with the majority of their budget going to special outings, new apparel items and jewelry.  As to why Mother’s Day is so much bigger than Father’s Day: the types of gifts people typically buy mom tend to cost a little more, and dad even admits that he doesn’t like all the fuss anyway.

Halloween: In 2013, two-thirds of Americans said they would partake in Halloween activities, spending $75 on average to celebrate, for a total of $6.9 billion.  The holiday has become more of an adult event than ever before, helping boost spending on costumes, candy, decorations and party materials more than 55 percent since 2005.  With the growth in popularity, other sectors have jumped into the mix.  Home improvement stores take advantage of their vast space to sell life-sized yard decorations, and drug and grocery stores are also now devoting select aisles to decorations, candy and costumes.

Source: National Retail Federation

April 29, 2014

After splurging on tablets and smartphones, beauty supplies, apparel and jewelry for mom last year, consumers this year will celebrate Mother’s Day keeping practicality in mind.  According to NRF’s Mother’s Day Spending Survey, Americans will spend an average of $162.94 on mom this year, down from a survey high of $168.94 last year.  Total spending is expected to reach $19.9 billion.

“As one of the most universally celebrated holidays, retailers will take this opportunity to attract Mother’s Day shoppers with promotions on ladies apparel items, health and beauty products, jewelry and even restaurant options,” said NRF President and CEO Matthew Shay.  “Now fully into spring, retailers are hoping consumer sentiment and spending intentions continue to grow as we round out one of the busiest retail seasons of the year and prepare for summer.”

Moms work hard and they are entitled to a show of appreciation on their special day.  Most consumers will acknowledge that appreciation with a greeting card (81.3%), though it appears her loved ones will also look for special gifts.  Two-thirds (66.6%) of those celebrating will buy mom her favorite flowers, spending a total of $2.3 billion, and 33.5 percent will look for spring sweaters and blouses, spending a total of $1.7 billiion on apparel and accessory items.  Mom’s loved ones will also buy books and CDs ($480 million), housewares or gardening tools ($812 million), personal experience gifts like a day at the spa ($1.5 billion), jewelry ($3.6 billion), and special outings like brunch or dinner ($3.8 billion).

Having spent the last few years treating mom to electronic gifts like tablets, smartphones, cameras and more, Americans this year may have less of a reason to invest in those items: 13.1 percent say they will buy mom a consumer electronic item and will spend a total of $1.7 billion, down from $2.3 billion last year.

“Americans haven’t forgotten about the state of the economy and are treating their finances and gift-giving budgets in a way that keeps practicality top of mind,” said Prosper’s Consumer Insights Director Pam Goodfellow.  “But like we saw with Valentine’s Day and Easter, people this year will look for special ways to treat mom to something nice without breaking the bank, knowing it’s the thought that counts.”

Most shoppers will head to specialty stores to find gifts (33.5%), but others will shop at department stores (32.4%), discount stores (24%), and online (29%).

The survey found 18-24 year olds are the most likely to shop at department stores among all other age groups; more than half (51.6%) will visit a department store in search of their perfect gift for mom.  But it’s 25-34 year olds who will spend the most on mom, spending an average of $216.53.

Nearly two-thirds (63.9%) of those surveyed say they will shop for their mother or stepmother, while 22.5 percent will shop for their wife, 9.2 percent will shop for their daughter and 6.6 percent will shop for their grandmother.

Source: National Retail Federation