UK Consumers To Spend £700M On Father’s Day
GlobalData has reported that weakening consumer confidence, along with macroeconomic uncertainty has meant Father’s Day spend on food, gifts and cards will grow by only £3.7 million (€4.2 million) this year.
Spending this year on Father’s Day is forecast to grow to £695.2 million (€794.2 million), however, this will be mainly driven by inflation - which was at a four-year high of 2.9% in May.
GlobalData report that food gifting will be the most affected category by price increases, and is expected to grow by 1.4% as a result.
Eleanor Parr, retail analyst at GlobalData, added that Father’s Day is seen as less important than Mother’s Day, and this is reducing consumers' desire to spend.
“As consumers’ disposable incomes become squeezed due to real wage declines, consumers will be more reluctant to allocate discretionary spend on occasions which are considered less important, therefore driving a volume decline in the market.
"Father’s Day spending will become a victim of this trend, with the slight increase in spend driven prominently by increased prices rather than shoppers willingness to upgrade their Father’s Day gift purchases this year.”
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Aidan O’Sullivan. Click subscribe to sign up to ESM: The European Supermarket Magazine.