A Near-Record Year Predicted for Father’s Day Spending

Retail spending for Father’s Day is expected to reach $15.3 billion this year, according to a study released by the National Retail Federation and Prosper Insights & Analytics.

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May 30, 2018

A Near-Record Year Predicted for Father’s Day Spending

Retail spending for Father’s Day is expected to reach $15.3 billion this year, according to a study released by the National Retail Federation and Prosper Insights & Analytics.

The study also revealed that a total of 77 percent of Americans plan to celebrate Father’s Day and will spend an average of $133 per person, the second highest in the survey’s 15-year history. Last year, consumers spent $135 per person for a total of $15.5 billion.

“We are pleased to see consumer confidence continue to rise, leading to another near-record holiday spend on Father’s Day,” says Matthew Shay, president and chief executive officer, NRF. “Leading into the second half of the year, Americans are looking forward to treating their dads and retailers will be prepared to offer a variety of gift options that will create new memories on this special day.”

When it comes to gifts this Father’s Day, consumers plant to spend $2.2 billion on clothing (purchased by 43 percent of shoppers), $2.1 billion on gift cards (42

percent) and $1.8 billion on consumer electronics (20 percent). Additionally, $878 million will be spent on home improvement supplies (16 percent), $862 million on personal care products (19 percent), $844 million on greeting cards (63 percent) and $830 million on tools or appliances (16 percent). Finally, another $798 million will be spent on sporting goods or leisure products (16 percent), $686 million on automotive accessories (16 percent) and $628 million on books or music (22 percent).

Additionally, the NRF found that 47 percent of consumers plan to give a “special outing” gift such as a concert, sporting event or dinner. Spending for this category is expected to top at $3.2 billion.

Finally, 39 percent of those celebrating the holiday will shop at a department store, 34 percent will shop online, 25 percent will head to a discount store and 24 percent will visit a specialty store. In addition, nearly half of smartphone users will use their device to make purchasing decisions.

“Special outing gifts have steadily grown in popularity for Father’s Day since their lowest point in 2009,” says Phil Rist, executive vice president, strategy, Prosper Insights. “These consumers, especially those between 18- and 24-years-old, want to offer something to their dads that is unique, thoughtful and allows for quality time on dad’s special day.”

Additionally, half of those surveyed plan to buy for their fathers or stepfathers (53 percent), followed by husbands (27 percent) and sons (10 percent).