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Though it remains a smaller gift-giving holiday than Christmas and Mother’s Day, consumers will continue to spend for Father’s Day this year, opting to splurge more on experiences than material objects.
Washington--Though it remains a smaller gift-giving holiday than Christmas and Mother’s Day, consumers will continue to spend for Father’s Day this year, opting to splurge more on experiences than material objects.
According to the National Retail Federation’s 2014 Father’s Day Spending Survey, 70 percent of Americans plan to spend the same amount this year that they did in 2013.
The average person will spend $113.80 on gifts for dad, which is down from $119.84 last year. Total spending for the holiday is expected to reach about $12.5 billion.
The organization also reports that 43 percent will spend money on events and experiences such as dinner or tickets to an event, totaling $2.5 billion this year, while another $1.8 billion will be spent on gift cards to let dad pick out his own present.
“Knowing both cost and sentiment are important to their shoppers, retailers this Father’s Day will make sure to offer promotions on a variety of gift options, including home improvement items, tools and even apparel,” said NRF President and CEO Matthew Shay. “As more people look for ‘experience gifts,’ with tickets to baseball games or a day on the golf course, retailers will also make sure to promote their gift cards for families hoping to create the perfect gift package.”
Another $1.8 billion will be spent on apparel items, while American consumers will spend about $1.6 billion on electronics for dad.
The most popular destination for shopping for Father’s Day presents among participants was department stores (36 percent), as well as discount stores (28 percent), online (also 28 percent) and specialty stores (24 percent).
“As we saw with Valentine’s Day and Mother’s Day this year, consumers are keeping to a strict budget,” said Prosper Insight’s Consumer Insights Director Pam Goodfellow. “Whether they spend $10 or $100, millions of Americans will find creative, affordable ways to show dad how much they care.”
Much of the shopping will be done via mobile devices, as nearly one-quarter of smartphone owners will research products and compare prices using their phones, and 31 percent of tablet owners will do the same. The NRF said that nearly one in five consumers will actually make a purchase with their tablets.
Proper Insights & Analytics conducted the survey, polling 6,540 consumers from May 6 to 13.
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