JUNE 17 2015

2015 Father’s Day Impact on Retail •

Overall, gross spending for Father’s Day 2015 is expected to reach $12.7 billion versus $12.47 billion last year. The National Retail Federation (NRF) predicts an average Father’s Day spend per person of $115.57 this year, about the same as last year’s average of $113.80.

•

According to an NRF and Prosper Insights & Analytics Monthly Consumer Survey, 65% of shoppers will shop at department stores or online for Father’s Day gifts this year; three in 10 shoppers said they will shop online.

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This year, dads can expect a variety of gifts, from tech accessories to golf lessons to home improvement tools to greeting cards. There will be an increase in spending on “experiential” gifts that are centered on brunch, dinner or other Father’s Day activities.

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Father’s Day always falls behind Mother’s Day in terms of gross spending, at $12.7 billion versus $21.2 billion for Mother’s Day. However, both holidays have showed strong year-overyear growth.

D EBO RA H W EI N S WI G Ex e c uti ve D ir ec to r – H ea d of G lo ba l Re tai l & Tec h n o log y Fu n g Bus i n es s I n tel li g en c e C en tr e d ebo ra h we in s w ig @ f un g 19 37. c om N e w Y or k : 64 6. 83 9.7 017

 

Fung Business Intelligence Centre (FBIC) publication: Quick Take on FATHER’S DAY Copyright © 2015 The Fung Group, All rights reserved.

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  JUNE 17 2015 Father’s Day Spend To Increase Slightly In 2015 Coming   off   a   slow   first   half   of   the   year,   retailers   can   expect   Father’s   Day   to   generate   positive   results   going  into  the  second  half  of  the  year,  according  to  NRF  President  and  CEO  Matthew  Shay.  An  expected   total  spend  of  $12.7  billion  will  represent  a  slight  increase  over  last  year’s  spend  of  $12.47  billion,  and   more  people  are  expected  to  visit  stores  and  browse  online  for  Father’s  Day  gifts  this  year.   According   to   the   NRF/Prosper   Insights   &   Analytics   survey,   75.4%   of   Americans   will   celebrate   Father’s   Day.   These   consumers   will   spend   an   average   of   $115.57   this   year,   up   only   slightly   from   last   year’s   average   of   $113.80.   Yet   those   who   plan   to   shop   online   will   spend   an   extra   $41.55   per   person,   for   an   average  spend  of  $157.12.  The  number  of  online  shoppers  for  Father’s  Day  gifts  will  continue  to  increase   (29.2%   versus   28.4%   last   year).   Similar   to   last   year,   two   to   three   in   10   of   those   surveyed   will   be   using   their  smartphones  and  tablets  to  research  products  and  compare  prices.   Figure  1:  Planned  Spend  on  Fatherʼs  Day  vs.  Last  Year  (June  2015)  

7.1%

More  

24.6% 55.0%

Same   Less  

13.3%

Do  Not  Celebrate   Fatherʼs  Day  

Source:  NRF  

 

Warmer Weather in the Week Leading up to Father’s Day Boosts Shopping Activities Father’s  Day  will  generate  excitement  this  year  as  consumers  get  ready  for  the  warm  summer  weather   and   start   the   summer   spending   season   with   gifts   for   Dad   and   other   men   in   their   life.   This   Sunday,   Father’s  Day  will  be  sunny  and  warm  along  both  the  coasts,  with  thunderstorms  in  Northern  regions  and   rain   in   the   Plains.   Consumers   will   gear   up   for   summer   with   grill   and   patio   accessories,   sporting   goods,   home  improvement  tools  and  other  seasonal  products.   Figure  2:  Week  of  June  14–20                   Source:  Planalytics  

 

Fung Business Intelligence Centre (FBIC) publication: Quick Take on FATHER’S DAY Copyright © 2015 The Fung Group, All rights reserved.

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  JUNE 17 2015 Mother’s Day Consistently Trumps Father’s Day in Terms of Gross Spending Father’s   Day   falls   about   a   month   after   Mother’s   Day   each   year,   and   also   right   around   graduations   and   summer   vacations.   This   year,   consumers   are   expected   to   spend   $12.7   billion   on   Father’s   Day   gifts   compared  with  $21.17  billion  on  Mother’s  Day  gifts.  Year  after  year,  Father’s  Day  falls  behind  Mother’s   Day  in  average  spend  per  consumer  ($115.57  versus  $173.63).  

Figure  3:  Total  Spending  on  Fatherʼs  Day  versus  Motherʼs  Day   25  

Fatherʼs  Day  

Motherʼs  Day  

USD  Billions  

20  

15  

10  

5  

0   2010  

2011  

2012  

2013  

2014  

2015E  

Source:  NRF  

 

Fathers Will Receive More Experiential Gifts This Year Last   year,   Americans   spent   their   Father’s   Day   gift   money   on   greeting   cards,   apparel,   home   improvement   tools,   sporting   goods   and   electronics.   However,   consumers   began   to   focus   more   on   experiential   gifts,   such  as  baseball  tickets,  golf  outings  and  other  activities.   This  year  will  look  a  lot  like  last  year,  with  four  out  of  10  consumers  spending  on  special  outings  and  six   out  of  10  buying  traditional  greeting  cards.   Figure  4:  2014–2015  Holiday  Spending    Holiday  

USD  Billions  

Winter  Holidays  

616.1  

Back  to  School/College  

74.9  

Mother’s  Day  

21.17  

Valentine’s  Day  

18.94  

Easter  

16.37  

Super  Bowl  

14.31  

Father’s  Day  

12.47  

Halloween  

7.4  

St.  Patrick’s  Day   4.63     Source:  NRF  and  Prosper  Insights  &  Analytics  

 

Fung Business Intelligence Centre (FBIC) publication: Quick Take on FATHER’S DAY Copyright © 2015 The Fung Group, All rights reserved.

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  JUNE 17 2015 FATHER’S DAY AROUND THE WORLD In the US, Father’s Day was not officially recognized until 1972, under Richard Nixon, 58 years after Mother’s Day had become an official holiday. Notably, Father’s Day first became commercialized during the Great Depression, when starving retailers and advertisers called the holiday a “second Christmas” for men, promoting everything from tobacco to neckties to golf apparel. Now, Father’s Day is celebrated in most other countries, but without the large consumer impact we see in America. Brazil celebrates Father’s Day on the second Sunday in August. In 2013, Brazilians spent an average of $171 on Mother’s Day and $90 on Father’s Day, more than Americans! In Russia, Father’s Day evolved out of a military commemoration. On February 23, Defender of the Fatherland Day is celebrated in honor of the Russian Armed Forces and men receive small gifts. Thailand celebrates Mother’s Day and Father’s Day on the respective birthdays of Queen Sirikit and King Bhumibol. The canna flower, symbolizing masculinity, is the traditional gift for fathers and grandfathers. Mexico celebrates Father’s Day on the third Sunday in June with large festivities that include gifts, food and music. Germany celebrates Father’s Day, th known as Ascension Day, on the 40 day after Easter. German tradition is to organize hikes and gatherings with lots of food and alcohol.

Shoppers’ Planned Purchases This  year,  shoppers  will  look  in  a  variety  of  categories  to  give  Dad   something  unique  and  personal.  These  include:   1.

Special  outings  such  as  dinner,  brunch  or  other  Father’s  Day   activities:  $2.595  billion  

2.

Gift  certificates/cards:  $1.813  billion  

3.

Clothing:  $1.739  billion  

4.

Electronics:  $1.614  billion  

5.

Greeting  cards:  $777  million  

6.

Home  improvement  or  gardening  supplies:  $710  million  

7.

Personal  care:  $684  million  

8.

Tools  or  appliances:  $668  million  

9.

Sporting  goods  or  leisure  items:  $665  million  

10. Books  or  CDs:  $538  million   11. Automotive  accessories:  $518  million   12. Other:  $359  million  

Shoppers Are Headed Online and into Department Stores This Father’s Day For   this   Father’s   Day,   shoppers   will   head   to   nearby   department   stores   and   venture   online   for   gifts.   Consumers   will   rely   less   upon   specialty   stores   (greeting   card/gift   stores,   electronics   stores)   and   discount   stores   because   of   in-­‐store   and   online   promotions   this   season:   • Department  stores:  36.4%   • Online:  29.2%   • Discount  stores:  25.2%   • Specialty  stores:  22.6%   In   the   past   few   years,   people   have   been   veering   away   from   catalogs,   local/small   businesses   and   specialty   clothing   stores   in   search   of   better   deals   and   more   options.   Shoppers   are   comparing  and  researching  products  online  to  find  something  for   Dad   that’s   new,   useful   and   unique.   Overall,   shoppers   are   spending   similarly   to   last   year   in   terms   of   dollars,   locations   and   products.  

Younger Generations Are More Mobile Savvy In  the  past  two  years,  we’ve  seen  a  conscious  shift  in  the  use  of   mobile   devices   for   product   research,   price   comparison   and   online   purchasing   across   demographics.   The   NRF/Prosper   Insights   &   Analytics   survey   revealed   the   following   Father’s   Day   trends:      

 

Fung Business Intelligence Centre (FBIC) publication: Quick Take on FATHER’S DAY Copyright © 2015 The Fung Group, All rights reserved.

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  JUNE 17 2015 • 18-­‐   to   24-­‐year-­‐olds   are   the   ones   most   likely   to   use   devices   to   research   and   compare   prices   (47.5%)   and  to  buy  (29.8%).  They  will  spend  an  average  of  $160.50  compared  with  $157.67  by  25-­‐  to  34-­‐ year-­‐olds.   • For  this  holiday,  most  retail  dollars  will  be  spent  on  dads  across  the  country  (51.8%)  and  husbands   (27.6%),  but  sons,  grandfathers,  brothers,  friends,  godfathers  and  other  relatives  will  be  receiving   gifts  as  well  (8.9%,  4.3%,  6.1%,  5.0%,  1.4%  and  8.3%,  respectively).    

  Figure  5:  Purchase  Channels  for  Fatherʼs  Day  GiTs     Catalog  

   

Specialty  Clothing  Store  

   

Local/Small  Business  

  Specialty  Store  (Greegng  Card,  Electronics  Store)      

Discount  Store  

 

Online  

   

Department  Store  

   

0%  

10%  

20%  

30%  

40%  

Source:  NRF  and  Prosper  Insights  &  Analy;cs  

Father’s Day Promo Highlights       Father’s   Day   Gift   Book:   Macy’s   is   helping   consumers   find   the   perfect  gift  for  Dad  with  its  “Father’s  Day  Gift  Book,”  a  collection  of   gift  ideas  and  discounts  on  men’s  apparel,  shoes  and  accessories.   JCPenney   Bigger  Savings:  JCPenney  is  celebrating  Father’s  Day  with  a  “3-­‐Day   Friends   &   Family”   event   that   includes   buy   one,   get   one   deals,   an   extra   25%   off   on   selected   merchandise   and   a   free   beard   or   bang   trim  at  the  JCP  Salon.       Gift   Guide   for   Dad:   Saks   Fifth   Avenue   created   a   “Gift   Guide”   that   features   200   items   under   $150,   including   wallets,   polo   shirts,   sunglasses  and  fragrance  sets,  along  with  a  “Luxe  Gift”  section  for   high-­‐end  designer  goods.    

 

Fung Business Intelligence Centre (FBIC) publication: Quick Take on FATHER’S DAY Copyright © 2015 The Fung Group, All rights reserved.

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  JUNE 17 2015  

 

 

Fung Business Intelligence Centre (FBIC) publication: Quick Take on FATHER’S DAY Copyright © 2015 The Fung Group, All rights reserved.

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  JUNE 17 2015     Deborah  Weinswig,  CPA   Executive  Director—Head  of  Global  Retail  &  Technology   Fung  Business  Intelligence  Centre   New  York:  917.655.6790   Hong  Kong:  +852  6119  1779   [email protected]    

Cam  Bolden   [email protected]    

Sunny  Chan   [email protected]  

  Marie  Driscoll,  CFA   [email protected]    

John  Harmon,  CFA   [email protected]    

Aragorn  Ho   [email protected]    

John  Mercer   [email protected]    

Charlie  Poon   [email protected]    

Kiril  Popov   [email protected]    

Stephanie  Reilly  

[email protected]    

Lan  Rosengard   [email protected]    

Jing  Wang     [email protected]  

 

     

 

 

Fung Business Intelligence Centre (FBIC) publication: Quick Take on FATHER’S DAY Copyright © 2015 The Fung Group, All rights reserved.

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