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Retailers get set for a lower spend Mother’s Day - Consumers to treat Mum with flowers, jewellery and cards

Posted by: [deleted]1248313515.919.7 on Wed, 07 May 2008 20:35:46

With discretionary spending on the decline, mothers around the country can expect to be spoilt this Sunday with traditional gifts and a modest approach to Mother’s Day. Richard Evans, Executive Director of peak retail industry body the Australian Retailers Association (ARA), said increasing petrol and grocery prices meant spending this Mother’s Day will not show an increase on last year and be more reflective of the tightening family budget.

"Although we're expecting approximately $300 million in Mother's Day sales nationally, the spend will be short and confined as consumers across Australia tighten their belt on this important day.

"In the current economic climate and with consumer confidence at record low levels, this year Australians are likely to revert back to a more traditional type of spending including flowers and cards but at lower levels than previous. In fact, we may see a trend returning to children making gifts for their mother.

"Although retailers are always pleased to hear their registers ring loud and long, mothers really just want gifts from the heart, which may just mean being looked after and given some quality time with their children," Evans said.

According to the ARA, Mother's Day is one of the biggest days for florists with sales greater than Valentine's Day in volume but not in unit spend. Jewellery is also likely to feature on Sunday - but not necessarily at the high-end.

"Books and cards are also popular Mother's Day gifts and department stores will see sales in a number of categories including intimate apparel, clothing, cosmetics, small appliances, cards and wrapping paper. Cafes and restaurants should be braced for a busy day with many families choosing to give Mum a break and dine out for Sunday lunch," Evans said.

For over 104 years, the Australian Retailers Association (ARA) has been the peak industry body in Australia's $292 billion retail sector which employs over 1.2 million people. As an incorporated employer body under the Workplace Relations Act and with a range of member services including business consulting, policy development, advocacy and education, the ARA promotes and protects over 5000 independent and national retailers throughout Australia. Visit www.retail.org.au or call 1300 368 041.


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