Father's Day spending set to rise this year
Sure, Mother's Day sales are way higher, but an improving economy means dad may get feted a bit better in 2013.
Gift-giving alert: Father's Day is coming up fast, on June 16 to be exact. And while American consumers on average spend about 30% more on Mother's Day than Father's Day, it looks they're willing to shell out a bit more this year for dear old dad, thanks to a strengthening economy.
Research firm IBISWorld says it expects overall spending for Father's Day 2013 to reach $13.2 billion, up 2.1% compared to 2012. It says the increase is "mainly due to the overall rise in consumer spending during the past year." Mother's Day spending also showed a slight bounce this year, up about 0.2% compared with a year earlier to total $17.1 billion.
Taking dad out to dinner or a sporting event should make up the king's portion of Father's Day outlays this year at 18.8% of total holiday sales, up 3.5% from 2012.
And with consumers having a little more discretionary income, IBISWorld says old-school Father's Day gifts, like the traditional tie or something for dad's car, are being overtaken by things like home-improvement tools, which are projected to see a 2.7% increase in sales for 2013.
In fact, according to IBIS, Father's Day sales of electronics like an Apple (AAPL) iPad are up more than 3% this year compared to 2012, while automotive accessories are down 3.4%.
Another holiday standby, greeting cards, are likely to see a 9% jump in sales from 2012. But overall they account for just 6.9% of total holiday spending. "Higher disposable incomes will leader consumers to be more inclined to buy a card and a present for dad," says the report, "instead of just one or the other."
Another much-favored, last-minute gift for the dad who might have everything is the gift card, whose sales are expected to remain the same as last year, accounting for about $1.73 billion.
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Reports say the generous benefactor behind the huge gratuities is a former PayPal executive.
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