Father’s Day may not receive the same recognition and fanfare as Mother’s Day, but with domestic sales approaching $15.5 billion, this annual event isn’t a shopping holiday you can afford to ignore.
In fact, roughly 75 percent of Americans purchase some sort of gift for Father’s Day. When you run the numbers, this means the average son or daughter spends more than $130 on their dads.
So, ask yourself … is your retail store positioned to take advantage of these Father’s Day shopping trends? Let’s take a look.
What Is Pop Getting for Father’s Day This Year?
In 2018, Father’s Day is June 17. If this year is anything like last year, there will be plenty of mug, necktie, electronic gadget and gift card sales — all are staples of this annual holiday.
However, according to the National Retail Federation , Father’s Day purchase trends are increasingly shifting toward experiential gifts rather than traditional, physical items.
In 2017, for example, roughly 48 percent of sons and daughters treated their dads to presents such as dinners, concerts and ballgames. Across the board, these experiential gifts generated an estimated $3.3 billion in sales.
What’s behind this shift in gift giving?
Part of this trend stems from the changing demographic of “sons and daughters.” Millennials now wield the most spending power of any age group. Having grown up in a digital, on-demand world, these younger shoppers now place more emphasis on experiencing rather than owning.
What’s surprising is this shift isn’t limited to the online world, where restaurant reservations and concert tickets are most frequently booked. Even now, department stores still receive the lion’s share of Father’s Day traffic (40 percent) — compared to e-commerce stores (34 percent) and discount shops (26 percent).
How Can You Prepare for Father’s Day 2018?
It depends on the nature of your business. If you’re lucky enough to own a stadium or sports team, you’re set. Father’s Day was made for you. The same is true if you own a restaurant, travel company or business that focuses on experiences.
What if you sell physical items? Not to worry.
Although experiential gifts continue to gain popularity, this still leaves an estimated $12 billion spent on physical presents. In other words, neckties, power tools and colognes are still incredibly profitable.
But what if what you sell isn’t normally considered “dad-centric?”
What Father’s Day Spending Means for the Average Retailer
Shopping for Mother’s Day is easy. Flowers, chocolates, jewelry, gift cards — and yes, experiences — collectively generate nearly $23 billion annually.
However, many people struggle to come up with good gift ideas for dad.
As a retailer, you can take advantage of this by positioning your current inventory as perfect Father’s Day presents. It doesn’t matter if you sell lamps, stereo speakers or scented candles — by putting up a few flashy signs or sending email reminders, you can make the decision-making process easier for shoppers.
Online retailer Amazon has perfected this formula by making recommendations and suggestions in the weeks leading up to Father’s Day.
Getting the Most Out of Father’s Day Spending
Here are some additional tips to help you get the most out of this lucrative spending holiday.
1. Offer sales and discounts
Discounts are a time-tested strategy for boosting sales. This approach is particularly powerful when targeting households in which Dad is the primary breadwinner. Shoppers will immediately appreciate the savings you provide — and ultimately, so will Pop.
2. Target the procrastinators
Compared to other spending holidays, Father’s Day may take the cake when it comes to last-minute shopping. You can use this to your advantage by offering time-saving perks such as:
- Discounted (or free) rush delivery
- Free in-store gift-wrapping services
Anything you can do to reduce friction — and speed up the process — will ultimately help you generate more sales.
3. Remember the grad tie-In
Father’s Day happens to coincide with graduation season. By advertising discounts for both of these “retail” events, you can benefit from spillover sales.
In other words, those looking for graduation gifts may end up walking away with Father’s Day presents as well, and vice versa.
One Final Father’s Day Prep Step
By following the strategies outlined above, you’ll be able to secure a much larger slice of the $15.5 billion Father’s Day spending pie.
This is especially true if you offer payment options that appeal to your target demographic. Millennials, for example, increasingly prefer mobile payments over traditional cash, checks and credit cards.
However, whenever there’s an uptick in spending, payment fraud is sure to follow. Christmas, Mother’s Day and Black Friday see the most payment abuse, both in-store and online. With $15 billion on the line, Father’s Day is no different.
Therefore, it’s important that you take steps to protect your business from fraudulent activity. This means choosing a PCI-compliant payment processor that takes data security seriously.
Keep in mind this level of protection represents the bare minimum in today’s world of cyberattacks and data breaches, which is why you should also choose a payment processor that offers additional fraud prevention in the form of:
If you’d like to make this year’s Father’s Day one of the safest and most profitable ever, we’re here to help.