Record amount of spending forecasted for Father’s Day
Consumers are showing increased appreciation for fathers this year, as indicated by the National Retail Federation's survey. They are expected to collectively spend a record-high of $22.9 billion on Father's Day celebrations, surpassing last year's $20 billion and the previous record of $20.1 billion in 2021. Three-quarters of consumers plan to celebrate Father's Day, and the average spending per person is projected to reach $196.23, exceeding the previous record of $174.10 in 2021. Online shopping remains the preferred method for purchasing Father's Day gifts, with 43% of consumers choosing to shop online. Department stores, discount stores, and specialty stores are also popular shopping destinations.
The surge in spending is attributed to a higher percentage of consumers purchasing clothing, electronics, personal care items, and planning special outings. Greeting cards, clothing, special outings, gift cards, and personal care items are among the most popular Father's Day gifts. Consumers aged 35-44 are expected to be the biggest spenders, while those aged 45-54 plan to increase their spending the most compared to last year. Additionally, there is an increasing interest in giving experiences such as tickets to sporting events or concerts, as well as product subscription boxes.
U.S. retailers are gearing up for a cautious but steady holiday season, focusing on mid-range price items, according to a CNBC Supply Chain Survey.