Photo: James Wheeler on Unsplash.com.
The next mass consumer spending opportunity will soon be upon, with Mother’s Day scheduled to be celebrated over a period of about a week, on different days in various parts of the world. It is the fifth largest spending event in the United States, after the winter holidays and Mother’s Day, according to the National Retail Federation (NRF).
In the United States, where Mother’s Day will marked on May 14, consumers plan to spend a total of $35.7 billion on Mother’s Day this year, nearly $4 billion more than last year’s record high of $31.7 billion, according to the annual survey released today by the NRF and Prosper Insights & Analytics.
According to the survey, 84 percent of U.S. adults are expected to celebrate the holiday.
“Mother’s Day provides Americans with an opportunity to honor important women in their lives,” NRF President and CEO Matthew Shay said. “As people make plans to celebrate this year, retailers are prepared to help shoppers find gifts of appreciation and admiration for those they want to recognize on this special day.”
The NRF says that consumers plan to spend $274.02 per person, the highest in the history of the survey and up from the previous record high of $245.76 in 2022. The top spenders are those ages 35-44, who are expected to spend an average of $382.26 on Mother’s Day.
Of those celebrating Mother’s Day, 57 percent are purchasing gifts for a mother or stepmother, followed by 23 percent for a wife and 12 percent for a daughter.
$7.8 BILLION FORECAST FOR JEWELRY
As seen in previous years, the most popular gifts to give are flowers and greeting cards, both at 74 percent, and special outings such as dinner or brunch, at 60 percent. But, when it comes to value, consumers will spend a total of $7.8 billion on jewelry, $5.6 billion on special outings and $4 billion on electronics.
Expected spending is up across all gift categories, and gifts of jewelry, electronics and apparel are the primary drivers of growth this year. Not only are consumers planning to spend more on these gift categories, but more consumers are interested in gifting these items than ever before.
“While most consumers shopped online last year for the perfect Mother’s Day gift, we are seeing just as many people turn to department stores as a shopping destination this year,” Prosper Executive Vice President of Strategy Phil Rist said. “Gifts of experience continue to grow in popularity, with nearly one-third of those celebrating Mother’s Day planning to give a gift of experience.”
In addition 34 percent of consumers expected to shop online, and an equal percentage at department stores, 30 percent of consumers are also planning to shop at specialty stores, 20 percent at small local and small businesses, and 23 percent at discount stores
ECONOMIC SLOWDOWN STILL A FACTOR
It’s impossible to discount the current economic climate, however. According to the NRF, inflation is a top issue for consumers in 2023 and 72 percent of those celebrating Mother’s Day say they’ve seen higher prices on items they’re considering gifting, particularly flowers, clothing and jewelry.
Despite this, making mom feel special remains a priority. Rather than passing on gift giving altogether, consumers seeing higher prices have become more value-driven and are taking advantage of sales and promotions or cutting back in other areas to make sure mom still has her special day.
Even though consumers are being price-conscious, “finding a gift that’s unique or different” (47 percent) and “finding a gift that creates a special memory” (42 percent) are still their top priorities when shopping for something special this year.