High Gas Prices No Match for Mom

High Gas Prices No Match for Mom
-Luxury items in demand, shoppers set to spend nearly $14 billion this Mother’s Day-

Washington, DC, April 19, 2006 – Moms throughout the nation can expect the royal treatment this year on Mother’s Day. According to the National Retail Federation's (NRF) 2006 Mother’s Day Consumer Intentions and Actions Survey, conducted by BIGresearch, spending this year is anticipated to reach $13.8 billion*. The average person plans to spend $122.16, up from last year’s $104.63.

The study also found that high prices at the gas pumps will not deter purchases of luxury gifts. Consumers planning to surprise mom with a trip to the spa or a massage will spend a total of $928 million, compared to last year’s $644 million. Those planning to splurge on jewelry will spend a total of $2.1 billion compared to $1.7 billion in 2005. Treating mom to a special outing such as brunch or dinner will cost consumers a total of $2.8 billion, up from $2.2 billion last year.

“On Mother’s Day, moms across the country will reap the benefits of having one of the hardest jobs in the world,” said NRF President and CEO Tracy Mullin. “Regardless of age or income, most people enjoy showering mom with lavish and thoughtful gifts to show their appreciation.”

Other popular items include flowers (67.6%), greeting cards (85.4%), gift certificates or gift cards (31.9%), electronics or computer related accessories (6.7%) and books and CDs (25.8%).

One explanation for an increase in spending could be that people are celebrating “all the moms they know” on this special day. Shoppers will also make sure to pick up something for their wife (20.7%), daughter (9.1%), grandmother (8.5%), sister (7.0%), friend (7.0%) and other relatives (12.3%).

Not surprisingly, men will spend more than women with the average man expected to drop at least $148.51 on mom, compared to women who are expected to spend $97.72.

Another spending surge can be attributed to young adults, ages 18-24, who are expected to spend an average of $142.40 per person, compared to last year’s $96.08. The 45-54 year old age group comes in second at an average of $129.29 per person, followed by the 25-34 year olds ($122.39).

“Consumers certainly enjoy splurging on luxury items such as fancy meals and jewelry, but greeting cards and flowers still remain favorite tokens of their appreciation,” said Phil Rist, Vice President of Strategy at BIGresearch. “No price tag is too high when it comes to showing mom the love and appreciation she deserves.”

Greeting card/gift stores, jewelers, florists and electronics stores will be the favorite place to shop this year for gifts of all kinds, with 38.2 percent of consumers preferring specialty stores over other traditional places such as department stores (29.2%), discount stores (25.6%), online shopping (16.9%), specialty clothing stores (5.0%) and catalog shopping (3.4%).

About the Survey
The NRF 2006 Mother's Day Consumer Intentions and Actions Survey was designed to gauge consumer behavior and shopping trends related to the Mother's Day holiday. The survey was conducted for NRF by BIGresearch. The poll of 7,865 consumers was conducted from April 5 –12. 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 1.4 million U.S. retail establishments, more than 23 million employees - about one in five American workers - and 2005 sales of $4.4 trillion. As the industry umbrella group, NRF also represents more than 100 state, national and international retail associations. www.nrf.com.

*Estimate based on total extrapolation of U.S. adults 18 and over (222.9 million)

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