This Father's Day, Australians will spend $820 million on their dads, with alcohol and food (34%), clothing, shoes, and sleepwear (15%) and books, games, and music (15%) the top three gift categories of choice. 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%).
While retailers welcome the seasonal boost, overall Australians are spending less than last year's figure of $850 million – a dip of $30 million or 3.5%.
Australian Retailers Association (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. 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% 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% stocking up on discounted items.
Mr 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," said Mr Zahra.
Father's Day takes place on Sunday 1 September 2024.
