Brand Keys Foresees Seven Percent Spending Increase, High-Tech is Gift-of-Choice for Dad

NEW YORK NY June 1 – Father’s Day has turned it to what’s expected to be a nearly $11 billion dollar retail holiday this year, according to a survey by Brand Keys, Inc., (www.brandkeys.com) the New York-based brand and customer loyalty research consultancy.

“Usually not as much money is spent on fathers as on mothers, but this year’s average anticipated Father’s Day spend is up 7%, a bit more than we saw for Mother’s Day spending this year,” said Robert Passikoff, Brand Keys’ president. “The 2011 survey indicates about the same number of consumers (71%) will be celebrating as last year, and spending an average of $123.00 to recognize Dad.”

Methodology

As part of the Brand Keys’ Customer Loyalty Engagement Index, the firm polled a national sample of 5,000 men and women, ages 18-60, and asked them if and how they were planning to celebrate Father’s Day.  Here’s what celebrants indicated they were looking to buy Dad this year (parentheses indicate percent-changes from last year):

Gift cards                  35%              (+5%)

Electronics               26%            (+6%)

Clothing                    23%            (-3%)

Tools/Automotive    19%            (+2%)

Sporting Goods         6%            (NA)

Wine/Alcohol             5%            (-0-)

DVDs/CDs                  3%            (+1%)

Books                          2%            (-1%)

The biggest change was in electronics (+6%), indicating, “that people are feeling a bit better about the economy and are willing to spend a little more,” noted Passikoff “Consumers are still shopping smarter and looking for bargains, but this year high-tech products are the actual gift-of-choice.”

Shoppers indicated they were buying:

Tablets (20%),

Electronic readers (15%),

Smartphones (12%),

MP3 players (7%),

Computers (5%), and

Cameras (5%)

Sales of wine and alcohol are flat from last year, and anticipated clothing purchases are down 3%. “Although you can always count on the perennial Father’s Day tie,” noted Passikoff, “and virtually everybody (95%) says they’ll be sending a card, either snail-mail or electronic,” noted Passikoff. About half of the consumers (43%, down 5% from last year) indicate that they’ll be celebrating with some sort of excursion for brunch, lunch, or dinner.

There’s a fairly even distribution in terms of where consumers will be shopping for Dad’s gift when it comes to “brick and mortar” stores, although – perhaps reflecting more confidence in the economy and a willingness to spend a bit more on Dad – Discount Stores are down 3% and Department Stores are up 5% as the location-of-choice for shopping:

Department Stores                   35%            (+5%)

Discount Stores                        32%            (-3%)

Online spending                       20%            (+2%)

Specialty Outlets                       13%            (-2%)

Catalog                                           3%          (+1%)

But whatever they buy and wherever they buy it, beyond cards, folks intend to “connect” with Dad on Father’s Day.  Here’s how:

                                    TOTAL                       MEN               WOMEN

Phone                        50%                            65                   35

Personal Visits         25%                            20                   40

On-line                      25%                            15                   25

Personal visits, along with meal excursions, are down 5% this year, “probably due to the cost of gasoline,” noted Passikoff. “But online outreach and increased spend takes up that slack.”

In 1909, Sonora Dodd, who is being raised by her father, listened to a Mother’s Day sermon and thought of the idea for Father’s Day.  She held a Father’s Day celebration a year later and by 1956 Father’s Day had been recognized by a Joint Resolution of Congress. In 1972, President Richard Nixon established a permanent national observance of Father’s Day to be held on the third Sunday of June.

“There’s an old saying that a father carries pictures where his money used to be,” said Passikoff. “This year’s spending seems to indicate families are trying to make up for that!”

END

Contact: VISIBILITY

Len Stein

cel 914 527 3708

[email protected]