Australians are expected to spend $860 million on Father’s Day gifts this year, down $12 million (1.3%) from 2022.
The Australian Retailers Association (ARA) and Roy Morgan are projecting that 35% of Australians plan to buy a gift for Father’s Day, down 1% from last year, spending an average of $112 per person, down $1.
Clothes and shoes are expected to be the second-most popular gifts according to 10% of respondents, with food and alcohol taking the top spot at 18%.
Meanwhile, 69% of Australians plan on spending the same amount this year compared to last year, while 14% plan to spend more and 17% intend to spend less.
About a fifth of respondents plan on celebrating Father’s Day with a meal at a café or restaurant.
ARA CEO Paul Zahra said the dip in spending this year comes amid a weak macro economy and reported price increases.
“With Australians experiencing unprecedented cost-of-living pressures and mortgage holders under extreme financial stress, the decline in Father’s Day spending is no surprise,” Zahra said.
“Retailers will still be encouraged by the $860 million projected spend, which will provide a reprieve for some retailers from the intense pressure due to rising operating costs and an overall discretionary spending slowdown.”
Zahra said Father’s Day is a gift-giving event, noting that shoppers are more likely to spend when showing appreciation for loved ones.
“It’s an important milestone to celebrate the immense contribution of dads and the sacrifices they make, but many Australians also take the opportunity to show their appreciation for their partners, grandfathers, caregivers, and other family members,” Zahra said.
The research found that more than a fifth (21%) of Australians will purchase gifts for someone other than their birth father.
The ARA-Roy Morgan Snap SMS survey was conducted between July 19 and July 20 this year, covering a cross-section of the community.