Australian consumers are forecast to spend $676.5 million on Father’s Day this year, but the figure is less than half of the estimated $1.4 billion spent on Mother’s Day in May, research shows.
The research from business analysts IBISWorld shows that the food industry should fare well on Father’s Day, September 1, with consumers predicted to spend $174.5 million taking their dads to cafes and restaurants. This figure is up 5.8% on 2012.
Gift cards are forecast to be popular presents on September 1, with sales expected to be $75.1 million, up 8.4% on 2012.
IBISWorld forecast that spending in hardware and electrical products will be strong, up 2.5% this year to reach $148.2 million, while sporting goods, books and clothing are expected to be down on 2012 figures.
Specialty stores are tipped to do well, taking $375.4 million of the overall spend. Department store spend will be around $140.1 million, online sales approximately $93 million and discount stores $68 million.
The research found that an average adult will spend around $37.30 on their father.
IBISWorld senior industry analyst Emily Witham told SmartCompany this morning that the predicted spend overall is only slightly up on 2012, with a rise of just 2.5% from $660 million.
Witham says this reflects the general consumer trends of conscious spending, and is much lower than Mother’s Day spend due to the lesser focus on the day.
“Mother’s Day has a lot more sentiment around it, and traditionally people splurge a lot more on their mums, while dad’s often want time out or recognition,” she says.
“Mother’s Day is more heavily marketed, and for a lot longer in the lead-up, and there is an emphasis on gifts like chocolates, jewellery and flowers.”
Witham says the forecast spend in restaurants and cafes demonstrates a shift towards “special occasion dining”, rather than the recent trend that saw consumers eating out many times a week.
She says the popularity of gift cards reflects the consolidation of many companies and brands, which means that one gift card can be used across various stores.