And you cannot beat a good book or CD for Dad if all other inspirations fail, he added, expecting $594 million will be spent on these types of gifts this Father's Day.
Los Angeles, CA (PRWEB) June 12, 2008
According to IBISWorld, Inc., (http://www.ibisworld.com), one of the nation's most respected independent publishers of business intelligence research, Americans are expected to spend $11 billion on gifts for Father's Day (June 15), about $7 billion less than the amount Americans spend on Moms for Mother's Day, which is more steeped in traditional gifts, some of which tend to be more pricey.
In economic terms, IBISWorld expects the average per capita spending on Father's Day to be in the range of $27.60 in 2008, down slightly from $28.97 last year, which is indicative of consumer spending while we are in the midst of a sluggish and unpredictable economy.
"When it comes to putting a smile on Dad's face, in many cases, spending quality time with Dad beats gift giving," said Senior Analyst George Van Horn of IBISWorld. "However, that is not to say there will not be plenty of gift giving on Father's Day. Moms and the kids still buy an array of gifts for Father's Day. And what is interesting is that gifts for Father's Day cover a wider range of items than what we typically buy for Moms on Mother's Day." Following are some of the top gift picks for 2008:
Whipping Up A Feast For Dad - "The cost for outings with Dads is expected to be $2.42 billion this year, representing 22 percent of the total being spent on Father's Day. And the trend is expected to continue," said Mr. Van Horn, with IBISWorld estimating that proportion will rise to 25 percent next year." He added, "Whether taking Dad for a drive, enjoying dinner at a family-friendly restaurant, or preparing a feast at home, it seems that despite traffic and high gasoline prices, Father's Day is still a popular day to get Dad off the sofa and out of the house, as well as treating him like a king."
Spending On New Clothing - This year, the retail outlet of choice is the department store, where 28 percent of Father's Day gifts are purchased, followed by specialty stores (such as electronics retailers) with a 24.3 percent share, and discount stores, which capture 23.5 percent of the Father's Day gift spending.
"Retailers can expect consumers to outlay a serious $1.45 billion this Father's Day on updating Dad's wardrobe, and most of us will buy him an item from a department or discount store," said Mr. Van Horn. "But the news is not good for specialty clothing stores, because, only six percent of Father's Day gifts will be purchased from specialty clothing outlets."
Gadgets Galore - Incorporating everything from flat screen TVs for super spoiled Dads to MP3 players, digital cameras, DVD players, wireless home networking devices and computers, as well as a Blackberry or an Apple iPhone, and all the accessories that go with these devices, all things electronic are expected to be a big hit this Father's Day, with spending in this sector expected to reach $1.32 billion, or an estimaated12 percent of all gifts given.
"We are seeing a convergence between home computing and consumer electronics applications, as well as more sophisticated electronic equipment for cars, such as portable GPS devices, digital audio and DVD players," said Mr. Van Horn. "As a result, plenty of kids with cash will buy their Dad the latest gadget, or update his old-fashioned technology with something much smarter this Father's Day."
Gift Cards And Gift Vouchers - The rapidly expanding gift voucher and store and bank-issued gift cards, will carve out $1.298 billion in sales during Father's Day this year, and our busy schedules demand more of Dad's time is causing this sector to grow exponentially.
"The internet is driving up revenues for the gift voucher industry, as tech-savvy kids can simply click and buy Dad the gift of his choice - perfect," added Mr. Van Horn. "Every year an increasing number, and wider variety of stores, are offering gift vouchers, which will account for 11.8 percent of Father's Day spending this year. Banks and individual retailers offer the same convenience by issuing gift cards loaded with denominations ranging from $25 to $500."
Greeting Cards - Despite the growing popularity of e-cards, IBISWorld predicts the greeting card sector will generate $770 million from Father's Day spending this year - with Hallmark holding onto the number one spot as our card of choice.
Old Favorites - Sporting and leisure goods will also generate $770 million in sales this Father's Day, while $748 million will be spent on tools and small appliances. "Mom and the kids will spend a solid $605 million on home improvement items and gardening tools for 'DIY' dads," said Mr. Van Horn. "And you cannot beat a good book or CD for Dad if all other inspirations fail, he added, expecting $594 million will be spent on these types of gifts this Father's Day."
Founded in 1972, IBISWorld provides a unique and extensive online portfolio of business research and analysis products designed to serve a range of business, professional service and government organizations. Delivered through enterprise subscriptions, the company publishes in-depth reports on more than 700 industries and offers profiles on more than 8,000 U.S. companies. In addition, the company provides databases of economic analysis, demographic data, and risk assessment reports relevant to virtually every business sector. IBISWorld's materials are valued for the breadth and depth of the research and analysis covering the entire U.S. economy, incorporating both financial and non-financial information impacting tracked industries and companies. IBISWorld Business Information is well known for its accuracy, consistency and timeliness. This is why almost all online information aggregators seek us out to include our reports as part of their global databases. Current IBISWorld partners include Hoovers, Valuation Resources, Superfactory and American Small Business Development Centers. With U.S headquarters located in Los Angeles, IBISWorld has offices in New York, Melbourne, and Sydney. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.
# # #