Father’s Day Gifts Go From Dandy To Handy

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IBISWorld Forecasts Holiday Spending To Rise 2.9 Percent In 2010

LOS ANGELES – June 7, 2010 –

Last year, dad received pampering gifts for Father’s Day, but this year, he will most likely get a handy new gadget for the home or car. There is strong growth in home improvement and automotive sales, according to industry research firm IBISWorld, and total holiday sales are forecast to grow by 2.9 percent from the previous year to reach $9.85 billion.

“In 2009, we saw personal care as the big winner, with the new age dad looking to improve his appearance,” said Toon van Beeck, senior analyst with IBISWorld. “But this year, IBISWorld expects sales to shift back to the more traditional gifts of home improvement products and automotive accessories.”

Solid growth of 4.3 percent is also expected to occur in the clothing category this Father’s Day. Ties, socks and underwear will remain a top gift, as dads are looking to upgrade their wardrobes. On the other hand, IBISWorld expects books, CDs and sporting goods (classified within the “other” category), to experience slightly negative growth, as trends change and spending shifts to other Father’s Day categories.

Father’s Day is a critical time for many retailers as they enter the summer because it is the last key retailing event until Halloween in October. Although Father’s Day sales only represent about 2.7 percent of all retail sales for the month of June, it is still a very important day for many businesses.

“Building sales leading up to Father’s Day may help counter any slowdown in business, particularly during these volatile times,” said van Beeck. “Discretionary spending seems to be returning, and therefore struggling retailers will find it critical to capitalize on the increased foot traffic this Father’s Day, compared to the poor showings in 2008 and 2009.”

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