Australians are tipped to spend $820 million on their dads this Father’s Day, with clothing, shoes and sleepwear hitting the top three categories.
While retailers welcome the seasonal boost, overall Australians are spending less than last year’s figure of $850 million, down 3.5 per cent.
Then top three categories this year are alcohol and food, with 34 per cent of Australians planning to spend on this category, followed by clothing, shoes, and sleepwear (15 per cent) and books, games, and music (15 per cent).
More than 8 million shoppers nationwide are planning to buy gifts for the dads in their life, spending around $101 each compared to last year’s $112 spend - down 10 per cent.
ARA CEO Paul Zahra said Father’s Day remains a popular celebration of the father-figures in our lives.
“We predict a dip in spending habits this year, with many households continuing to feel the cost-of-living crunch, but Father’s Day remains a seasonal highlight for Aussie retailers and this year will be no exception,” he said.
“The spending dip is concerning given we have seen significant population growth across the past year, and it speaks to continued tough times for many retailers despite the seasonal pockets of positivity.
Around 800,000 Australians, or 10 per cent of those planning to buy a gift, have been stocking up on gifts early – purchasing their Father’s Day presents in advance to take advantage of the mid-year/end of financial year sales. These early-bird buyers have already spent $75 million on gifts, with 53 per cent stocking up on discounted items.
Zahra said retailers in these categories will still enjoy a welcome boost in the lead-up to Father’s Day.
“This is the perfect opportunity for traders to promote Father’s Day-inspired gifts, and to make it easy as possible for shoppers to find the perfect present.
“We know that households are doing it tough right now, so retailers need to focus on delivering value to entice shoppers over the Father’s Day period.”