According to The Street, market research firm IBISWorld reported that Father's Day was a $10 billion holiday last year, and is forecasted to increase by 4.6 percent to $10.8 billion this year. However, it still ranks far behind Mother's Day, which saw $14.9 billion in holiday spending last year.
"Retailers have been less creative about Father's Day," said IBISWorld retail analyst Janet Shim. "Especially in the last three years during the recession, when people were cutting back on spending overall, they really weren't able to capture that discretionary spending."
According to estimates by the National Retail Association, the average American will spend an average of $106.49 on Father's Day gifts, up from $94.32 last year. Mother's Day spending increased from an average of $127 per person last year to $141 this year.
"I really don't think it's the retailers who are promoting these events thinking mom is more important than dad," said Kathy Grannis, spokeswoman for the National Retail Federation (NRF). "We've found that it's the consumer who shies away from really going all out for dad."
According to the NRF, the average spending gap between the two holidays is between $30 and $50 per person since 2007. A survey conducted by Experian through its shopping site, PriceGrabber, found that 45 percent of consumers are planning to spend the same amount as last year this Father's Day, while 11 percent are planning to spend less due to factors such as the economic environment and gas prices.
"Frugality seems to be the trend of the moment, regardless of whether dad is receiving the gift rather than mom," says Graham Jones, general manager of PriceGrabber. "Given that Mother's Day and Father's Day are roughly six weeks apart from each other on the calendar, this leaves little room to set aside funds or experience a change in economic abundance between the two holidays."
