Monday, June 17, 2024

Father’s Day will deliver a spending boost amidst cost-of-living crisis

Australians are set to spend $860 million on Father’s Day gifts this year in a much-needed boost for retailers, however, spending is set to reduce compared to 2022 as cost-of-living pressures cause hip-pocket pain for shoppers.

Research from the Australian Retailers Association (ARA) in collaboration with Roy Morgan projects a modest dip in Father’s Day spending this year, down $12 million (1.3%) from 2022.

This year, 35% of Australians plan to buy a gift for Father’s Day (down 1% from 2022), spending an average of $112 per person (down $1 from 2022).

Food and alcohol are slated to be the most popular gift for Dad, mentioned by 18% of survey respondents, followed by clothing and shoes (10%) and books, music and games (6%).

More than two-thirds of Australians plan on spending the same on Father’s Day this year compared to last year (69%), while 14% plan on spending more and 17% intend to spend less.

About a fifth of respondents’ plan on celebrating Father’s Day with a meal at a café or restaurant.

ARA CEO Paul Zahra says while the spending forecasts are marginally down on last year, it’s understandable given the current economic environment, and potentially bigger if you factor in recent price increases.

“With Australians experiencing unprecedented cost-of-living pressures and mortgage holders under extreme financial stress, the decline in Father’s Day spending is no surprise,” Mr Zahra said.

“Retailers will still be encouraged by the $860 million projected spend, which will provide a reprieve for some retailers from the intense pressure due to rising operating costs and an overall discretionary spending slowdown.

“Father’s Day is another gift-giving event centred around giving back – and we find that when shoppers are showing appreciation for loved ones, they are more likely to splash out.

“This is a very social family event and, food and alcohol are typically the favoured gifts on Father’s Day, with barbeques and gatherings proving a very popular way to celebrate the occasion.

“It’s an important milestone to celebrate the immense contribution of dads and the sacrifices they make, but many Australians also take the opportunity to show their appreciation for their partners, grandfathers, caregivers, and other family members.”

More than a fifth (21%) of Australians will purchase gifts for someone other than their birth father.

Father’s Day is on Sunday, September 3, 2023.

This ARA-Roy Morgan Snap SMS survey was conducted with an Australian-wide cross-section on Wednesday July 19 – Thursday July 20, 2023.

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