The ARA is predicting that Father’s Day won’t be bringing in the big bucks this year with Aussies spending $12m less than last year.
For those needing the last minute reminder, Father’s Day is this Sunday September 3. Research from the Australian Retailers Association (ARA) in collaboration with Roy Morgan has revealed that Australians are set to spend $ 860 million on Father’s Day gifts and festivities this year, a $ 12 million decline on last year’s spend.
17 percent of respondents said they would spend less than last year, with 69 percent set to spend the same and 14 percent splashing out to spend more this Father’s Day. The average spend per individual is projected to be $112.
Liquor stores are set to cash in with Whiskey, Gin and Wine tipped to be top gifts, followed by the timeless classics of PJs, socks, underwear and shirts.
“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,” said ARA CEO Paul Zahra.
Earlier this week, the ABS shared its July sales analysis which showed retail sales increased just 2.1 percent overall in July as compared to last year with the most significant spend on food which Zahra attributed to “unavoidable” price increases. The other categories remained in decline.
“Shoppers are becoming increasingly conscious of cutting back on spending, making it a challenging time to be a discretionary retailer,” said Zahra.
While the decline was expected and won’t be a surprise to retailers, Zahra did note that the Father’s Day spend would still offer some encouragement to retailers in this slow and tough period.
“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,” he said.
“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. ”