Father’s Day is the last major gift-buying bonanza before Christmas and acts as a canary in the coalmine for festive season spending.
The latest research from the Australian Retailers Association (ARA), in collaboration with Roy Morgan, predicts that the nation’s dads have plenty to look forward to on September 4th.
Australians are predicted to spend $735 million on Father’s Day gifts this year. The forecast is 7.7 per cent down on last year’s estimate as the rising cost of living and inflation impact consumer budgets.
The report reveals that just over a third of Australians – 36 per cent – plan on buying a Father’s Day gift this year – down 4 per cent on last year.
Forty two per cent of those surveyed said that cost of living pressures will impact their purchasing choices. But the ARA estimates the average spend will be marginally up on the $95 predicted last year.
Online purchasing is expected to account for 27 per cent of the Father’s Day gift total.
Alcohol/food top the intended purchase list (28%), followed by clothing/footwear (18%) and gift cards/vouchers (14%).
More than 55 per cent of respondents indicated they were planning on buying an environmentally-friendly gift.
Fragrances rank highly as Father’s Day gifts in the US, the UK and Australia. David Jones, for example, is offering 195 ideas featuring colognes and grooming SKUs from Dior Sauvage and Giorgio Armani Profondo gift sets to new releases such as Burberry Hero and Calvin Klein and Tommy Hilfiger wash bags.
Fragrances did very well for Father’s Day in the US in June. The category climbed 18 per cent in revenue by contrast to 2021.
Retailers will be encouraged by the projections with $735 million set to be spent in-store and online, adds Paul Zahra, CEO of the ARA.
“Father’s Day provides retailers with a good barometer for how consumer discretionary spending is likely to track over the festive season. The concern is with inflation yet to peak, and cost of living challenges likely to worsen before they get better, consumers will be squeezed even further when it comes to their discretionary purchases.”
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