June 3, 2014
Father’s Day is already the smallest of gift-giving holidays and this year Americans are expected to spend even less, according to the National Retail Federation’s (NRF) 2014 Father’s Day Spending Survey.
The survey found that the average person will spend $113.80 on neckties, tools, electronics and other special gifts for dad, slightly down from $119.84 last year. Total spending for the holiday is expected to reach $12.5 billion.
“Knowing both cost and sentiment are important to their shoppers, retailers this Father’s Day will make sure to offer promotions on a variety of gift options, including home improvement items, tools and even apparel,” said NRF president and CEO Matthew Shay. “As more people look for ‘experience gifts’ with tickets to baseball games or a day on the golf course, retailers will also make sure to promote their gift cards for families hoping to create the perfect gift package.”
While most people (64.1%) will simply say thank you to dad with a greeting card, four in 10 (41.6%) will treat dad to new apparel items such as neckties and sweaters, spending a total of $1.8 billion, while another 42.6% will celebrate with special outings such as dinner or a ticket to a sporting event, spending a total of $2.5 billion. The survey also found that those celebrating Father’s Day will spend $1.6 billion on electronic gifts like smartphones and tablets, and $1.8 billion on gift cards, letting dad pick his own special gift.
Consumers will also spend on tools or appliances ($663 million), sporting goods or leisure items ($662 million), home improvement items ($645 million), personal care items ($641 million), books or CDs ($555 million) and automotive accessories ($520 million).
Dad’s loved ones will look for gifts at a variety of locations, including discount stores (28.1%), online (28.4%) and specialty stores (24.2%); 16.6% say they plan to support their communities and shop at a local or small business to find gift items for dad. Most shoppers, however, will head to dad’s favorite department store (35.8%).
“As we saw with Valentine’s Day and Mother’s Day this year, consumers are keeping to a strict budget,” said Prosper Insights Director Pam Goodfellow. “Whether they spend $10 or $100, millions of Americans will find creative, affordable ways to show dad how much they care.”
On-the-go shoppers will use their smartphones and tablets to research and purchase gifts for dad this year. Nearly one-quarter of smartphone owners (23.4%) will research products and compare prices on gifts using their smartphone, and three in 10 tablet owners (30.6%) will do the same. Nearly one in five (18.2%) will purchase products with their tablet for Father’s Day.
More than half of survey respondents plan to shop for their father or stepfather (52.3%) and 27.6% will look for ways to show their appreciation for their husband.
Source: Retailing Today, National Retail Federation
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