Father’s Day spending on the rise
Mother's Day was widely heralded as being one of the reasons retail sales grew in May, with Americans going out in droves to purchase gifts for their moms. Now, Father's Day is expected to create a similar bump in sales for retailers in June, according to a new report from the National Retail Federation and BIGinsight.
While Americans don't spend quite as much on dad as they do mom, Father's Day expenditures are expected to be up nonetheless. The average consumer anticipates spending $117.14 on gifts for their fathers this year, which is up 10 percent from the average of $106.49 last year. Father's Day budgets are slowly closing the gap compared to Mother's Day, with the difference shrinking to approximately $30.
Overall, the National Retail Federation and BIGinsight expect Americans to spend $12.7 billion on gifts, ranging from golf equipment to restaurant gift certificates.
"He may not ever expect the 'royal treatment' on Father's Day, but this year dad doesn't have much of a say as it's evident his loved ones want to make sure he has a great day," said NRF president and CEO Matthew Shay. "For those looking for the perfect gift idea, retailers will have specials on everything from patio sets and grills to ties and gardening tools in the weeks leading up to the holiday."
Popular gifts among shoppers are just what you would expect, including consumer electronics (expected to account for $1.7 billion in expenditures), apparel ($1.7 billion), gift cards ($1.7 billion), sporting goods ($641 million) and books or music ($645 million).
The audience for Father's Day is also broadening, which may be why expenditures are growing. For example, while 53.9 percent of respondents said they are buying primarily for their dads, 29 percent are celebrating their husbands, sons (9.7 percent), grandfathers (5.3 percent) and brothers (6.8 percent and friends (5.7 percent) as well.
Overall retail sales grew 3.9 percent in May, according to a Commerce Department report, with many retailers crediting Mother's Day and Memorial Day weekend for the small bump.
