JUNE  8,  2016      

Father’s Day 2016: Impact on US Retail  

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Spending  for  Father’s  Day,  which  falls  on  June  19,  is   expected  to  reach  a  record  high  of  $14.3  billion  in   2016—the  highest  total  since  the  National  Retail   Federation  (NRF)  began  surveying  consumers  about   the  holiday  13  years  ago,  but  lower  than  the  Mother’s   Day  total  of  $21.4  billion.  

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The  NRF  projects  an  average  Father’s  Day  spend  per   person  of  $125.92  this  year,  up  from  $115.57  last   year.  

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Top  gift  choices  for  Father’s  Day  this  year  include   experiences,  clothing  and  gift  cards.  

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Two  in  five  millennials  are  planning  to  give  a  gift  of   experience,  a  figure  significantly  higher  than  that  of   older  generations.  

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Department  stores  will  see  the  majority  of  Father’s   Day  shoppers.  Almost  30%  of  smartphone  owners  will   research  gift  ideas  on  their  device  and  16%  will  use  it   to  m ake  a  purchase.  

DEBORA H W EINS W IG Ma na g ing Di re c to r , F u ng Gl o b a l R e t a i l & T ec hno l o gy d e b or a hw e in s w ig@ f u ng 19 37 .co m U S : 64 6 .8 3 9.7 0 17 HK : 85 2 .6119 .17 79 CH N: 8 6 .18 6 .14 2 0.3 0 16

 

DEBORAH  WEINSWIG,  MANAGING  DIRECTOR,  FUNG  GLOBAL  RETAIL  &  T ECHNOLOGY   [email protected]    US:  917.655.6790    H K:  852.6119.1779    CN:  86.186.1420.3016   Copyright  ©  2016  The  Fung  Group.  All  rights  reserved.  

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  JUNE  8,  2016  

Father’s Day 2016: Impact on US Retail

According  to  the  NRF’s  2016  Father’s  Day  Spending  Survey,  conducted  by   Prosper   Insights   &   Analytics,   Americans   plan   to   spend   quite   a   bit   on   Dad   for   Father’s   Day   this   year:   $125.92   on   average.   That   figure   is   up   $10.35   from   last   year,   and   total   spending   on   the   holiday   is   expected   to   be   the   highest  in  13  years,  reaching  $14.3  billion.  Father's  Day  falls  on  June  19  this   year.       “It’s   encouraging   to   see   consumers   planning   to   splurge   on   dads,”   NRF   President   and   CEO   Matthew   Shay   said.   “This   increase   could   be   a   good   sign   related   to   consumers’   willingness   to   spend   more   as   we   head   into   the   second  half  of  the  year.”   Special   outings   such   as   dinner,   brunch   or   other   types   of   a   “fun   activity/experience”   remain   the   most   popular   gift   category   for   dads.   Consumers  plan  to  spend  $3.1  billion  on  experiences,  up  from  $2.5  billion   last  year.  They  plan  to  spend  about  $2.0  billion  on  clothing  and  roughly  the   same  amount  on  gift  cards,  which  are  expected  to  see  a  sales  increase  of   10%   ($350   million)   from   last   year.   The   sporting   goods,   tools   and   appliances,   and   automotive   accessories   categories   are   expected   to   see   sales  of  approximately  $6–$7  billion  each.  While  greeting  cards  represent   only   a   small   fraction   of   dollar   spend,   they   are   the   most   commonly   purchased  Father’s  Day  gifts:  64.5%  of  consumers  surveyed  plan  to  buy  a   greeting  card  for  their  dad.   Figure  1.  Holiday  Spending  (USD  Bil.)    

 Category  

 

 

2015–2016   626.1  

2014–2015   616.1  

Back  to  School/College  

68.0  

74.9  

Mother’s  Day  

21.4  

21.2  

Valentine’s  Day  

19.7  

18.9  

Easter  

17.3  

16.4  

Super  Bowl  

15.5  

14.3  

Father’s  Day  

14.3  

12.7  

Halloween  

6.9  

7.4  

St.  Patrick’s  Day  

4.4  

4.6  

Winter  Holidays  

Source:  NRF/Prosper  Insights  &  Analytics    

 

 

DEBORAH  WEINSWIG,  MANAGING  DIRECTOR,  FUNG  GLOBAL  RETAIL  &  T ECHNOLOGY   [email protected]    US:  917.655.6790    H K:  852.6119.1779    CN:  86.186.1420.3016   Copyright  ©  2016  The  Fung  Group.  All  rights  reserved.  

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  JUNE  8,  2016   Figure  2.  Total  Spending  on  Father’s  Day  (USD  Bil.)  

16   14.3   14  

12.7  

12   10  

13.3  

12.5  

12.7  

2014  

2015   2016E  

11.1   9.6  

9.4  

2008  

2009  

9.8  

8   6   4   2   0   2010  

2011  

2012  

2013  

  Source:  NRF/Prosper  Insights  &  Analytics  

SHOPPERS’  PLANNED  PURCHASES  INCLUDE:   • Brunch  or  other  Father’s  Day  activity,  for  an  expected  $3  billion   • Gift  cards,  for  an  expected  $2  billion   • Apparel,  for  an  expected  $2  billion   • Electronics,  including  smartphones,  for  an  expected  $1.7  billion   • Greeting  cards,  for  an  expected  $833  million   • Housewares  and  gardening  items,  for  an  expected  $797  million   • Tools  and  appliances,  for  an  expected  $771  million   • Personal  services  such  as  a  spa  day,  for  an  expected  $747  million   • Sporting  goods  or  leisure  items,  for  an  expected  $740  million   • Automotive  accessories,  for  an  expected  $662  million   • Books  and  CDs,  for  an  expected  $609  million  

WHERE  ARE  PEOPLE  SHOPPING?   Similar   to   last   year,   the   majority   of   Father’s   Day   shoppers   will   head   to   department   stores   to   find   gifts   for   Dad,   followed   by   specialty   stores   and   small   businesses.   Approximately   32%   of   Father’s   Day   shopping   will   be   done  online  this  year,  up  3.2%  from  2015.    

 

 

DEBORAH  WEINSWIG,  MANAGING  DIRECTOR,  FUNG  GLOBAL  RETAIL  &  T ECHNOLOGY   [email protected]    US:  917.655.6790    H K:  852.6119.1779    CN:  86.186.1420.3016   Copyright  ©  2016  The  Fung  Group.  All  rights  reserved.  

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  JUNE  8,  2016   Figure  3.  Where  Shoppers  Plan  to  Buy  Father’s  Day  Gifts,  2015  vs.  2016  

Catalog  

2%  

Specialty  Clothing  Store  

11%  

Local  /  Small  Business  

17%  

Specialty  Store  (Greekng  Card  /   Gil  Store,  Electronics  Store)  

24%  

Discount  Store  

27%  

Online  

32%  

Department  Store  

38%   0%  

2015  

10%  

20%  

30%  

40%  

2016  

 

Source:  NRF/Prosper  Insights  &  Analytics  

MOBILE  AND  TABLET  TRENDS   Across   demographics,   consumers   are   increasingly   using   their   mobile   devices   to   compare   prices   and   purchase   products.   For   Father’s   Day,   the   NRF  survey  shows  the  following  trends:   • Consumers  ages  18–24  are  the  ones  most  likely  to  use  mobile  devices   to   research   and   compare   prices   (57.6%)   and   to   buy   (43.5%).   The   figures  are  30.4%  and  32.4%,  respectively,  for  the  general  population   surveyed.   • Most   of   the   retail   dollars   will   be   spent   on   dads   across   the   country   (53.3%),   but   many   husbands   (28.4%),   sons   (8.9%),   grandfathers   (4.9%)   and  brothers  (6.3%)  will  benefit  as  well.    

 

 

DEBORAH  WEINSWIG,  MANAGING  DIRECTOR,  FUNG  GLOBAL  RETAIL  &  T ECHNOLOGY   [email protected]    US:  917.655.6790    H K:  852.6119.1779    CN:  86.186.1420.3016   Copyright  ©  2016  The  Fung  Group.  All  rights  reserved.  

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  JUNE  8,  2016     Deborah  Weinswig,  CPA   Managing  Director   Fung  Global  Retail  &  Technology   New  York:  917.655.6790     Hong  Kong:  852.6119.1779   China:  86.186.1420.3016   [email protected]     Erin  Schmidt   Research  Associate

 

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DEBORAH  WEINSWIG,  MANAGING  DIRECTOR,  FUNG  GLOBAL  RETAIL  &  T ECHNOLOGY   [email protected]    US:  917.655.6790    H K:  852.6119.1779    CN:  86.186.1420.3016   Copyright  ©  2016  The  Fung  Group.  All  rights  reserved.  

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