We Shower Moms With Gifts On Mother's Day, But Don't Be Fooled, IBISWorld Reveals Retailers Will Still Reap $11 Billion For Father's Day Gift Giving LOS ANGELES, June 9
LOS ANGELES, June 9 /PRNewswire/ -- According to IBISWorld, Inc.
(http://www.ibisworld.com), one of the nation's most respected independent
publishers of business intelligence research, Americans are expected to spend
$11 billion on gifts for Father's Day (June 15), about $7 billion less than
the amount Americans spend on Moms for Mother's Day, which is more steeped in
traditional gifts, some of which tend to be more pricey.
In economic terms, IBISWorld expects the average per capita spending on
Father's Day to be in the range of $27.60 in 2008, down slightly from $28.97
last year, which is indicative of consumer spending while we are in the midst
of a sluggish and unpredictable economy.
"When it comes to putting a smile on Dad's face, in many cases, spending
quality time with Dad beats gift giving," said Senior Analyst George Van Horn
of IBISWorld. "However, that is not to say there will not be plenty of gift
giving on Father's Day. Moms and the kids still buy an array of gifts for
Father's Days. And what is interesting is that gifts for Father's Day cover a
wider range of items than what we typically buy for Moms on Mother's Day."
Following are some of the top gift picks for 2008:
Whipping Up A Feast For Dad -- "The cost for outings with Dads is expected
to be $2.42 billion this year, representing 22 percent of the total being
spent on Father's Day. And the trend is expected to continue," said Mr. Van
Horn, with IBISWorld estimating that proportion will rise to 25 percent next
year." He added, "Whether taking Dad for a drive, enjoying dinner at a
family-friendly restaurant, or preparing a feast at home, it seems that
despite traffic and high gasoline prices, Father's Day is still a popular day
to get Dad off the sofa and out of the house, as well as treating him like a
king."
Spending On New Clothing -- This year, the retail outlet of choice is the
department store, where 28 percent of Father's Day gifts are purchased,
followed by specialty stores (such as electronics retailers) with a 24.3
percent share, and discount stores, which capture 23.5 percent of the Father's
Day gifts spending.
"Retailers can expect consumers to outlay a serious $1.45 billion this
Father's Day on updating Dad's wardrobe, and most of us will buy him an item
from a department or discount store," said Mr. Van Horn. "But the news is not
good for specialty clothing stores, because, only six percent of Father's Day
gifts will be purchased from specialty clothing outlets."
Gadgets Galore -- Incorporating everything from flat screen TVs for super
spoiled Dads to MP3 players, digital cameras, DVD players, wireless home
networking devices and computers, as well as a Blackberry or an Apple iPhone,
and all the accessories that go with these devices, all things electronic are
expected to be a big hit this Father's Day, with spending in this sector
expected to reach $1.32 billion, or 12 percent of all gifts given.
"We are seeing a convergence between home computing and consumer
electronics applications, as well as more sophisticated electronic equipment
for cars, such as portable GPS devices, digital audio and DVD players," said
Mr. Van Horn. "As a result, plenty of kids with cash will buy their Dad the
latest gadget, or update his old-fashioned technology with something much
smarter this Father's Day."
Gift Cards And Gift Vouchers -- The rapidly expanding gift voucher and
store and bank-issued gift cards, will carve out $1.298 billion in sales
during Father's Day this year, and our busy schedules demand more of Dad's
time is causing this sector to grow exponentially.
"The internet is driving up revenues for the gift voucher industry, as
tech-savvy kids can simply click and buy Dad the gift of his choice --
perfect," added Mr. Van Horn. "Every year an increasing number, and wider
variety of stores, are offering gift vouchers, which will account for 11.8
percent of Father's Day spending this year. Banks and individual retailers
offer the same convenience by issuing gift cards loaded with denominations
ranging from $25 to $500."
Greeting Cards -- Despite the growing popularity of e-cards, IBISWorld
predicts the greeting card sector will generate $770 million from Father's Day
spending this year -- with Hallmark holding onto the number one spot as our
card of choice.
Old Favorites -- Sporting and leisure goods will also generate $770
million in sales this Father's Day, while $748 million will be spent on tools
and small appliances. "Mom and the kids will spend a solid $605 million on
home improvement items and gardening tools for 'DIY' dads," said Mr. Van Horn.
"And you cannot beat a good book or CD for Dad if all other inspirations fail,
he added, expecting $594 million will be spent on these types of gifts this
Father's Day."
About IBISWorld
Founded in 1972, IBISWorld provides a unique and extensive online
portfolio of business research and analysis products designed to serve a range
of business, professional service and government organizations. Delivered
through enterprise subscriptions, the company publishes in-depth reports on
more than 700 industries and offers profiles on more than 8,000 U.S.
companies. In addition, the company provides databases of economic analysis,
demographic data, and risk assessment reports relevant to virtually every
business sector. IBISWorld's materials are valued for the breadth and depth
of the research and analysis covering the entire U.S. economy, incorporating
both financial and non-financial information impacting tracked industries and
companies. IBISWorld Business Information is well known for its accuracy,
consistency and timeliness. This is why almost all online information
aggregators seek us out to include our reports as part of their global
databases. Current IBISWorld partners include Hoovers, Valuation Resources,
Superfactory and American Small Business Development Centers. With U.S
headquarters located in Los Angeles, IBISWorld has offices in New York,
Melbourne, and Sydney. For more information, visit http://www.ibisworld.com
or call 1-800-330-3772.
SOURCE IBISWorld, Inc.
