The National Retail Federation reveals that Americans are planning to spend an average amount of $134.75 for their Dads on Father’s Day which falls on June 17 this year. The digits are up from $125.92 in 2017 and this year, the total spending on the said occasion may reach a record as high as $15.5 billion.
“It’s encouraging to see consumers spending on special occasions such as Father’s Day,” NRF President and CEO Matthew Shay said. “This is a positive sign of strong consumer confidence heading into the second half of the year.”
Prearranged Purchases by Shoppers
To understand the consumer behavior during Father’s day, here are the Top 5 gift categories you might want to ponder on:
- Of course, gift category for dads varies from time to time as the years go by. Not to mention, still, the most common and popular gift category for dads during Father’s days are special outings such as dinner or brunch.
- Consumers are planning to actually spend $3.3 billion on experiences, which comes higher from $3.1 billion in 2016.
- Consumers are planning to spend about $2.2 billion on clothing. Almost, the same amount goes with the gift cards (which are anticipated to get a sales increase of 10% ($200 million) from the past year.
- On the other perspective, consumers who are fond of giving electronics or computer-related gifts came as the fourth-most-popular category wherein with consumers are expected to spend up to $1.8 billion.
- The last gift category that would complete the list is greeting cards wherein consumers are expected to spend approximately $0.9 billion.
While they represent only a small fraction of dollar spend, greeting cards are the most commonly purchased Father’s Day gift: 64.3% of consumers surveyed plan to buy a card for their Dad. Some 48.0% of consumers expressed a desire to bring their Father out for a special dinner or brunch.
Last year, Prosper Analytics suggested that “Personal Care Products” is the category that reigns over consumers spending decisions. The analytics says that planned spending on personal care products for men—such as aftershave, cologne, and razors—will actually increase by a considerable 20% year over year, overtaking the development in every other category for Father’s Day.
What do People Shop?
Most consumers who are shopping for Father’s Day headed to department stores to get a gift for their Dad, followed by getting their gifts online, and going to discount stores. There is a noticeable incessant change with regard to the probability to do shopping offline for Father’s Day. According to the survey, 33% of smartphone users say that they use their device to research for gift ideas, but only 18% of them uses the device to complete a purchase.
To wrap it all up, Americans are self-assured that they can actually spend more money on Father’s Day this year than previous years which is a good opportunity to the entire retail industry.