AddThis

Favorable Father’s Day outlook a boon to May comps

Spending on Father’s Day is projected to total $12.7 billion this year, and Walmart should get a decent portion of that total given its strength in top gift giving categories.

The Nation Retail Federation forecast this week that average spending per person for Father’s Day would increase 10% to $117 per person from $106 last year, further narrowing the gap with Mother’s Day when spending per person averaged $152.
Walmart should receive a large percentage of those dollars as its stores offer products in many of the categories where gift givers indicated they are likely to concentrate purchases. According to the survey, most people this year will treat their father to a special outing, such as golfing, eating out or attending a sporting event ($2.3 billion vs. $2.0 billion in 2011).  However, they will also buy electronic gift items ($1.7 billion vs. $1.3 billion last year) and apparel ($1.7 billion vs. $1.4 billion in 2011). Others will splurge on gift cards ($1.7 billion), sporting goods ($641 million) and books or music ($645 million).

This year also promises to be the most mobile of all Father’s Days with more than one-quarter of those who own a tablet indicating they will use the device to make a purchase. Overall, more than half of tablet owners said they will use the device to research products and compare prices, redeem coupons and look up retailers’ information such as store hours and location.

Smartphones also will be a factor this year as users research gift ideas and compare prices (26.7%), look up store hours and location information (18.9%) and use apps to research or purchase products (11.3%). Nearly 14% said they will purchase a Father’s Day gift via their smartphone.

The survey of 8,789 consumers was conducted by BIGinsight May 2-8.

 

© 2014 Retailing Today. All Rights Reserved.