Father’s Day spending tipped to struggle as consumer spending strike continues

Business forecaster IBISWorld expects growth on Father’s Day spending to be below inflation, increasing just 1.72% from last year.

IBISWorld forecasts that Australians will spend $28.10 on average on Father’s Day gifts in 2011.

The prediction draws on IBISWorld’s industry reports as well as independent statistics to reach its conclusion.

Australian IBISWorld General Manager Karen Dobie says, “while last year’s mood was buoyant, this year our cautious approach is being exacerbated by continuing bad news in the global markets,”

It is expected most will opt to take their father out for a meal instead of buying a gift.

Gifts tipped to weather the drought are hardware and electricity retailers, which have been forecast to grow in spending by 4.7%.

The sector has previously been forecast by IBISWorld to grow by 15% over the next five years on the back of increased residential prices and the success of reality television shows such as Channel Nine’s The Block.

However, IBISWorld industry analyst Paul McMillan stressed that “big ticket items are off the table”, with spending expected to consist of gift cards and other small items.

Disappointment may be in store for clothing, book and CD retailers, with online retailers offering bargains on these products.

It is forecast all three will experience a 5% decline in spending from last year.

McMillan says “a lot of retailers are feeling the pain and looking anywhere for a bit of a boost.”

For such retailers, the results will be disappointing.