Australians are set to splash out $860 million on Father’s Day gifts this year in a much-needed boost for retailers, despite declining compared to 2022.
Research from the Australian Retailers Association (ARA) in collaboration with Roy Morgan projects a modest dip in Father’s Day spending this year, down $12 million (1.3%) from 2022.
More than two-thirds of Australians plan on spending the same on Father’s Day this year compared to last year (69%), while 14% plan on spending more and 17% intend to spend less.
About a fifth of respondents’ plan on celebrating Father’s Day with a meal at a café or restaurant whilst others are planning to celebrate at home.
Across the country, the average spend per individual is projected to be $112.
Tasmania ($204) and Queensland ($168) shoppers are poised to spend the most ahead of Father’s Day per head, followed by New South Wales ($107).
As cost-of-living pressures mount, shoppers in South Australia ($69), Victoria ($80) and Western Australia ($82) are poised to spend less.
The hottest gifts this Father’s Day are tipped to be:
- Whiskey, Gin and Wine
- Pyjamas, socks and underwear
- Polo shirts, casual shirts and T shirts
- Electric shavers and coffee makers
- Fragrance and skincare
- BBQ, hardware and garden tools
- Tech accessories including fitness trackers and headphones
- Lego and jigsaw puzzles
- Gift cards (e-gift cards perfect for last minute shoppers)
ARA CEO Paul Zahra said while the spending forecasts are marginally down on last year, it’s understandable given the current economic environment.
“With Australians experiencing unprecedented cost-of-living pressures and mortgage holders under extreme financial stress, the decline in Father’s Day spending is no surprise,” Mr Zahra said.
“Retailers will still be encouraged by the $860 million projected spend, which will provide a reprieve for some retailers from the intense pressure due to rising operating costs and an overall discretionary spending slowdown.
“Father’s Day is another gift-giving event centred around giving back – and we find that when shoppers are showing appreciation for loved ones, they are more likely to splash out.
“This is a very social family event and, food and alcohol are typically the favoured gifts on Father’s Day, with barbeques and gatherings proving a very popular way to celebrate the occasion.
“It’s an important milestone to celebrate the immense contribution of dads and the sacrifices they make, but many Australians also take the opportunity to show their appreciation for their partners, grandfathers, caregivers, and other family members.”
More than a fifth (21%) of Australians will purchase gifts for someone other than their birth father.
Father’s Day is this Sunday- September 3, 2023.
This ARA-Roy Morgan Snap SMS survey was conducted with an Australian-wide cross-section on Wednesday July 19 – Thursday July 20, 2023.
