Father’s Day Sales Up 2.1 percent in 2013
IBISWorld Forecasts A Day of Special Outings for Dad
LOS ANGELES – May 29, 2013 – As the economy continues to rebound Americans will have more discretionary money to spend on dad this year. According to industry research firm IBISWorld, Father’s Day spending is projected to total $13.2 billion in 2013, which is 2.1 percent higher than in 2012. Traditional Father’s Day gifts, such as automotive accessories and clothing, will take a backseat to gift choices reflecting economic recovery, like home-improvement tools. This increase is mainly due to the overall rise in consumer spending during the past year.
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Special outings, like dining out and watching sporting events, are expected to account for the largest share of Father’s Day spending this year, contributing 18.8 percent of total holiday sales, up 3.5 percent from 2012. Specifically, spending at restaurants is expected to increase in revenue on Father’s Day as families go out to eat to celebrate dad.
The Other category, which includes books, CDs, personal care products and sporting goods, is a close second and is expected to account for 18.4 percent of this holiday’s spending. These gifts are estimated to increase 1.9 percent from last year as consumers shift away from more practical gifts like clothing. Because consumers have higher disposable income levels than they did during the recession, they have more flexibility in buying discretionary gifts, such as golf clubs.
Greeting cards sales are estimated to jump 9.0 percent from 2012, but will only account for 6.9 percent of total holiday spending. Higher disposable incomes will lead consumers to be more inclined to buy a card and a present for dad, instead of just one or the other. Additionally, the growth in popularity of handcrafted greetings cards, driven by consumers’ willingness to spend on personalized goods, will help boost spending on this category.
Clothing and electronics, both popular, long-standing choices for dad, are estimated to account for more than one-quarter of Father’s Day spending combined. Spending on clothing, however, is expected to slightly decline as consumers change preferences and increase spending on electronics, such as an iPod touch or Amazon Kindle Fire. Gift cards will also remain a holiday mainstay this year because of their ease, convenience and their ability to let dad choose his own gift. They are estimated to account for the same amount of Father’s Day spending as they did last year at 13.1 percent.
Despite strong growth in overall spending on Father’s Day this year, spending on automotive accessories is estimated to drop 3.4 percent from 2012. Even though the automotive industry is expected to show signs of growth in 2013, consumer preferences for Father’s Day gifts have started to shift from car accessories to home-improvement gifts. This is because of rises in housing prices and disposable income levels, which have led consumers to put time and money into do-it-yourself home repairs. Homeowners have veered away from hiring outside workers or contractors, as they are still adhering to tight budgets after the recent housing crash. These factors are estimated to boost consumer spending in this gift category in 2013.
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit www.ibisworld.com or call 1-800-330-3772.