Shoppers expected to spend $9.9B on dear old dad
Father's Day also is a cause for retailers to celebrate, since nearly $10 billion is expected to be spent nationwide by loved ones seeking to buy dad that perfect gift.
Although the total is almost $5 billion less than what was spent on Mother's Day a month ago, apparently because men spend more than women, Father's Day sales are a boon to bottom lines.
Richard Fienberg, director of the Center for Customer Driven Quality at Purdue University, said retailers have to create a reason for customers to shop. Holidays fill that purpose.
"Mother's Day, Father's Day, Grandparent's Day, Valentine's Day: all those are the kinds of things retailers have an interest in," he said. "Nine point nine billion dollars is a considerable amount of money. For retailers, it's not just to get people to buy something for the holiday, the point isn't just to increase those sales, but to let people know what they have in their stores, and like the experience, so they'll return."
Even though gasoline costs are taking a bigger chunk of the family income, shoppers are expected to spend almost $100 each on Father's Day, according to the National Retail Federation.
"Gas prices have little affect on what consumers spend for those who matter most," said Tracy Mullin, federation president and chief executive officer.
"Retailers will see increased sales of clothing and tools, as well as gift cards."
Bass Pro Shops promotions manager Kelly Hipskind said the chain, which has a location in Portage, offers special events, including for Father's Day, to promote holidays to enhance customers' "family and shopping experience."
"We aren't so much interested in what we do saleswise," he said. "We're more interested in the experience. Our philosophy stems from our founder Johnny Morris's words: "Make a friend today and a sale tomorrow.' We're really engaged around the whole family concept. We cater to the entire family celebrating with father."
Lia Osburn, marketing director for Westfield Southlake mall in Hobart, said spending increase for the holiday.
"Traditionally, we note a pick-up and retailers notice a pick-up of sales, similar to Mother's Day. Any gift-giving holiday gives them a bump. The stores geared toward fathers benefit more."
Father's Day comes as people already are shopping for summer-type clothing and merchandise, Osburn said.
But, "the holiday encourages sales," she said. "We are hoping it will contribute to a really strong June."
The federation's survey indicates department stores, where more than 34 percent of shoppers plan to purchase gifts, will reap the greatest benefit from Father's Day sales. About 29 percent are expected to buy gifts at discount stores, 30 percent at specialty stores, 7 percent at specialty clothing stores and nearly 19 percent will shop online.
Greeting cards are expected to be the most popular Father's Day gift.
Rhonda Rettig, manager of Maria's Hallmark in Munster, said the store has 30 feet of space devoted to 30 different varieties of Father's Day cards. Maria's, which also has locations in Schererville and Crown Point, has a 60 percent to 70 percent increase in sales for the holiday, although sales are about 20 percent lower than for Mother's Day, when gifts, as well as cards, are on shopping lists
Diane Garber, retail consultant and president of Buffalo Grove, Ill.-based In-Sight Communications Inc., said Father's Day is on retailers' third tier of holidays. Christmas, Easter and Halloween make up the first tier, with Mother's Day and Valentine's Day making up the second.
"It (Father's Day) is nice, as well as frustrating, for retailers because it's the less-typical segments of the market that benefit," she said.
Benefactors include sporting goods sports, tobacco shops, specialty shops and other retailers that cater to a specific market, hobby or advocation that men enjoy, plus the off-price retailers where shoppers can find deals on quality merchandise, she said.
"It's theirs to lose," Garber said. "Every dad and granddad has something to celebrate. It's up to retailers to find creative ways to draw customers in."
Posted in Local on Friday, June 15, 2007 12:00 am Updated: 10:12 pm.
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