Mother's Day Spending Up 4.2 Percent

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IBISWorld identifies The Industries Benefitting From New Year's Resolutions In 2010

LOS ANGELES

– Apr. 27, 2010 – Spending is picking up nationwide, as consumers are starting to realize the economy is recovering from recession. For this reason

IBISWorld

is expecting a stronger Mother's Day in 2010, with sales expanding by 4.2 percent to $14.88 billion, which is a dramatic improvement from the double-digit decline in sales last year (-14.8%).

“Clothing and electronics are set to see the greatest growth for year-on-year sales this Mother's Day,” said Toon van Beeck, senior analyst with IBISWorld. “A growing number of consumers are willing to pay premium prices for products again, meaning that deep discounting is no longer the only technique driving retail traffic. Clothing retailers have spent a long time managing inventory levels, and now with consumers heading back to the malls, they will be able to generate better profits. This is extremely positive because it helps long-term sustainability, economic growth and company expansion,” adds van Beeck.

The electronics sector is one area that has observed great swings in growth and decline throughout the past few years. However, this Mother's Day will prove positive for electronic retailers, especially in home-related products, as consumers return after consecutive years of holding back on such discretionary purchases.

“Consumers are slowly moving back to their old shopping habits and not only focusing on price,” said Toon van Beeck. “They're willing to enter department and chain stores in search of the right product, but will still look for bargains due to the fact that sales have been ingrained into their minds for the past three years!”

Consequently, those retailers that stock appropriate merchandise, combined with appealing prices and/or special offerings and incentives, will capitalize on the increased foot traffic and therefore observe a substantial improvement in sales this Mother's Day.

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