If the Australian Retailers Association’s (ARA) statistics are correct, Australians could be injecting $860 million into the struggling economy on Father’s Day gifts this year.
It’s a much-needed boost that retailers have been waiting for, for a long time. With Australian consumers being extra cautious about the high cost of living, it’s no wonder the ARA predicts a $12 million decline compared to Father’s Day spending in 2022.
Spending declines by 1.3%
In collaboration with Roy Morgan, the ARA predicts a slight dip of 1.3% in spending on Father’s Day this year.
Families are seeing Father’s Day gifts as a treat. Most dads will have to make do with a creative card instead of that whiskey bottle. The ARA predicts that only 35% of Australians will buy a gift this year. When they do, the budget is limited to an average of $112 per person.
Food and alcohol stay a top hit
The survey found that no matter how tight the budget gets, food and alcohol will remain the most popular gifts for dads this year. Clothing, shoes, books, music, and games are the more unpopular items on the list.
ARA CEO Paul Zahra says the spending forecasts are marginally down on last year. He believes it’s understandable given the current economic environment. It’s potentially more of a big deal 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,” says Zahra.
Retailers hoping for a reprieve
This comes when retailers look at ways to stay afloat with high inflation coming down hard on business owners.
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“It 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 centered around giving back. We find that when shoppers show appreciation for loved ones, they are more likely to splash out,” says Zahra.
But if budgets are tight, can Grandpa expect any treat on this day? A fifth of the respondents assured they would purchase gifts for someone other than their birth father.
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