Dad Takes a Back Seat to Gas and Food Costs, According to NRF Survey

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For Immediate Release
Kathy Grannis or Scott Krugman (202)783-7971
grannisk@nrf.com or krugmans@nrf.com

Washington, May 28, 2008 –Higher prices at the pump and the grocery checkout line might be cutting into Father’s Day budgets. According to the National Retail Federation’s 2008 Father’s Day Consumer Intentions and Actions Survey, conducted by BIGresearch, consumers plan to spend an average of $94.54, compared to last year’s $98.34. Total spending is expected to reach $9.6 billion.*

“When it comes to dad, a simple greeting card and family dinner really goes a long way,” said NRF President and CEO Tracy Mullin. “Unfortunately, consumers are torn between their love for dad and their need for gas this year.”

The survey found many consumers (41.4%) will still treat dad to a special outing and will spend an average of $20.19. Other popular gifts include clothing (36.5%), books and/or CDs (22.6%), gift certificates and gift cards (32.7%), sporting goods (13.3%) and consumer electronics or computer related accessories (18.5%). The large majority of consumers (68.4%) will invest in a greeting card for dad, spending an average of $7.49. 

Department stores will be the big winner this year in terms of where consumers plan to shop as 32.5 percent of people will head out in search for the perfect tie or cologne. Discounters (31.0%), specialty stores (28.1%), online retailers (18.0%) and specialty clothing stores (7.9%) will also benefit from the holiday. 

“The fact of the matter is gas prices are high, grocery bills are increasing and we’re entering the summer months when energy prices will also start to increase,” said BIGresearch Vice President of Strategy Phil Rist. “Quality time with family and friends will be important this Father’s Day as opposed to larger, more expensive gifts.”

Almost half of all consumers (48.2%) will buy a gift for a father or stepfather this year. Others will spend on their husband (27.7%), son (7.6%), grandfather (4.5%), brother (5.0%), friend (4.4%) and godfather (1.2%). 

About the Survey 

The NRF 2008 Father’s Day Consumer Intentions and Actions Survey, conducted for NRF by BIGresearch, was designed to gauge consumer behavior and shopping trends related to Father’s Day. The poll of 8,347 consumers was conducted from April 29 – May 7, 2008. The consumer poll has a margin of error of plus or minus 1.0 percent.

BIGresearch is a consumer market intelligence firm that provides unique consumer insights that are gathered online utilizing very large sample sizes. BIGresearch’s syndicated Consumer Intentions and Actions survey monitors the pulse of more than 7,000 consumers each month to empower its clients with unique insights for identifying opportunities in a fragmented and changing marketplace.  

The National Retail Federation is the world's largest retail trade association, with membership that comprises all retail formats and channels of distribution including department, specialty, discount, catalog, Internet, independent stores, chain restaurants, drug stores and grocery stores as well as the industry's key trading partners of retail goods and services. NRF represents an industry with more than 1.6 million U.S. retail companies, more than 25 million employees - about one in five American workers - and 2007 sales of $4.5 trillion. As the industry umbrella group, NRF also represents over 100 state, national and international retail associations. www.nrf.com. 

*Estimate based on total extrapolation of US adults 18 and over. 

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