Consumers Pinch Pennies (But Not Gift Cards) on Father’s Day

Consumers Pinch Pennies (But Not Gift Cards)  on Father’s Day

NEW YORK NY June 15 – A day born in memory and gratitude by a daughter who thought her father should be honored with a special day has turned into a $10 billion dollar retail holiday this year, according to a survey by Brand Keys, Inc., (www.brandkeys.com) a New York-based brand and customer loyalty consultancy.

““While it’s typical that not quite as much money is spent on fathers as it is on mothers, this year’s average anticipated spend is going to be up 5%,”” said Robert Passikoff, Brand Keys’ president. “This year’s survey indicates about the same number of consumers (70%) will be celebrating the holiday, and those that are will be spending an average of $115.00 to recognize Dad.”

Where will that money be spent on? Five thousand (5,000) consumers reported the following anticipated purchases:

Gift cards               30%

Clothing                 26%

Electronics             20%

Tools/Automotive 17%

Wine/Alcohol         5%

DVDs                       2%

“The biggest change from last year is that more consumers report they will be buying electronics (up +12%) indicating “that people are feeling more secure about the economy and willing to spend a bit more,”” noted Passikoff. “Sales of wine and alcohol are down slightly, but anticipated clothing purchases are up 3%. “You can always count on the perennial Father’s Day tie.”

““Virtually everybody (95%,) say they’ll be sending a card, either snail-mail or electronic,”” said Passikoff, “and about half of the consumers (48%, and about at the same level as 2009) indicate that they’ll be celebrating with some sort of brunch, lunch, or dinner.””

There’ is a fairly even distribution in terms of where consumers will be shopping for dad’s gift when it comes to “bricks 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 4% as the location-of-choice for shopping

Discount Stores 35% (down 4%)

Department Stores 30% (up 10%)

Specialty Outlets 15% (down 5%)

Online spending for the holiday is estimated to be 18% (about even with last year) with catalog sales accounting for the remaining 2%  (down 6%) of gift purchases.

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         30%                               20                      40

On-line                      20%                               15                       25

The concept for Father’s Day began in 1909 in Spokane, Washington when Sonora Dodd, 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 on June 19, 1910, 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 circumstance!””

Contact: VISIBILITY

Len Stein

cel 914 527 3708

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