Forget about graduation. Another summer celebration is causing people to disregard price tags and spend greatly.
According to the National Retail Federation’s annual Father’s Day survey, consumers say they will splurge on dads more than ever this year, gifting anything from gardening gear to baseball games. An average of $125.92 per customer will be spent for this holiday, considerably higher than last year’s $115.57. In total, consumer spending is projected to reach more than $14 billion in 2016, the highest amount since the survey started in 2003.
“It’s encouraging to see consumers planning to splurge on dads. This increase in spending could be a good sign related to consumers’ willingness to spend more as we head into the second half of the year,” Matthew Shay, NRF president and CEO, said.
Conducted by Prosper Insight and Analytics, the survey of 7,200 consumers found that four categories—special outings, clothing, gift cards and consumer electronics—showed the greatest spending amounts for Father’s Day.
According to the survey, special outings are highly popular Father’s Day presents among consumers. Forty-seven percent gave their dads brunch or game tickets and combined, the predicted spending amount for special outings is $3.1 billion this year. Clothing (given by 43 percent) and gift cards (given by 41 percent) tied at a predicted total of approximately $2 billion this year. Consumer electronics, given by 20 percent, placed fourth for predicted spending at a total of $1.7 billion this year. Greeting cards are the most popular gift on Father’s Day (65 percent), but placed last at a predicted spending amount of $833 million this year.
Consumers will search for gifts, including clothing, mostly at department stores (38 percent). Online shopping will be another popular hub for consumers (32 percent) to find Father’s Day presents. Twenty-seven percent of consumers will shop at a discount store, followed by 24 percent at a specialty store and 17 percent at local businesses.
“After seeing consumers splurge on moms and graduates earlier this year, it’s no surprise that dads are going to enjoy a few more gifts on Father’s Day,” said Prosper principal analyst Pam Goodfellow. She added, “No matter what sales or promotions consumers will take advantage of on Father’s Day, they will make sure that the gift is a memorable one for dad.”