Which retailers gain most from Father's Day?
The annual celebration that came about thanks to a grateful daughter who thought her father should be honoured with a special day has turned into what's expected to be a US$9 billion dollar retail holiday this year, according to Dr Robert Passikoff, president for US-based branding agency Brand Keys, who has been keeping track of where all that money goes each year.
While not quite as much money is spent on fathers as mothers (US$9 billion compared to nearly US$13 billion), the retail sales total is up nearly 12% over last year, and represents an enormous retailing opportunity for brands worldwide.
Where the money goes Brand Keys conducted a consumer survey and found that 77% will be celebrating the occasion (17th June in the UK, Ireland, Canada and USA, by the way), and that they will be spending an average of US$125.
Such occasions always provide good sales peaks for retailers, but where will the money be going this year? Consumers reported their spending plans as follows:· Clothing - 28%;· Gift cards - 26%;· Tools - 10%;· Wine/alcohol - 9%;· CDs - 8%;· Books - 6%;· Electronics - 6%;· Phones - 5%;· Computers - 2%.
Spending trends The biggest change from the 2006 survey was that more consumers said they would be buying gift cards (up 5%). Passikoff commented: "This is a trend we identified a number of years ago, and it continues years after year."
Most consumers (83%) said they would be sending a card, and over half (52%) said that they would be celebrating at a brunch, lunch, or dinner.
There is, as was found last year, an even distribution in terms of where consumers prefer to shop for gifts when it comes to bricks and mortar stores:· Department stores - 27%;· Discount stores - 26%;· Specialty outlets - 25%.
In addition, online spending for father's day in the US is forecast to account for 14% of gift sales, with catalogue sales accounting for the remaining 8%.
Footnote: Father's Day began in 1909 in Spokane, Washington, when Sonora Dodd, having been raised by her father, listened to a Mother's Day sermon and came up with the idea that fathers should be honoured in the same way. She held the first Father's Day celebration on 19th June 1910 and, by 1956, the occasion had been recognised by a Joint Resolution of Congress. In 1972, President Nixon made it official, for the third Sunday of June each year.