Retailers can expect a decrease in Father’s Day spending as the Australian Retailers Association (ARA) predicts that Australians will spend $30 million less on gifts this year, 3.5 per cent lower than last year’s figure of $850 million.
ARA CEO Paul Zahra said that the dip in spending may be attributed to the ongoing cost-of-living crunch experienced by many households.
“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,” he explains.
The top three gift categories for Father’s Day – on Sunday, September 1 – are alcohol and food (34 per cent), clothing, shoes, sleepwear (15 per cent), and books, games, and music (15 per cent).
Zahra advises businesses to focus on delivering value to entice shoppers and making it convenient for shoppers to find the “perfect present”.
“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 concluded.
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