Father’s Day is just around the corner, and retailers are about to see some cash flow. As Americans prepare to celebrate dads everywhere by taking them out to dinner or gifting them a new tie, businesses expect spending on Father’s day gifts to reach a record $15.5 billion, according to the National Retail Foundation (NRF).
Most Americans, 39.9% according to the NRF, plan on purchasing gifts directly from department stores compared to the 33.7% who will order gifts online. A Father’s Day shopper is expected to spend an average of $134.75 on Dad this year, $8.83 more than in 2016. As shoppers get more generous, items in the personal care category such as cologne, aftershave and razors will become more popular, according to Proper Principal Analyst Pam Goodfellow.
“It’s encouraging to see that consumers are spending on special occasions such as Father’s Day,” said Matthew Shay, NRF President and CEO, in a statement. “This is a positive sign of strong consumer confidence heading into the second half of the year, and a good deal for all the dads who will reap the benefits.”
But, in keeping with millennial spending habits, most sons and daughters plan on spending their money on experiences rather than things this year, including eating out and travel. Forbe s reported that additional experiences can include live performances, sporting events, and other social events. Planned spending on a special outing with Dad surpassed gift spending on clothing, gift cards and even electronics.