Father’s Day gift spending impacted by cost of living challenges as consumers seek more sustainable gifts

Australians are forecast to spend $735 million on Father’s Day gifts in a welcome boost for retailers, however purchases are down 7.7% on last year’s projections, as the rising cost of living starts to impact consumers.

Research from the Australian Retailers Association (ARA) in collaboration with Roy Morgan shows over a third of Australians (36%) plan on buying a Father’s Day gift, down 4% on last year. Of those planning a gift purchase, 42% said the current cost of living challenges will impact how much they’ll spend.

Consumers are thinking more about sustainability when it comes to their purchases, with 55% planning to buy a gift that’s environmentally friendly.

The top-line results of the research found that:

  • Father’s Day gift spending will reach $735 million with people to spend an average amount of $95, up marginally on last year.
  • Of those planning to purchase a gift, 42% said the current cost of living challenges have impacted how much they plan to spend
  • More than half of consumers (55%) plan on buying a gift that’s environmentally friendly
  • Alcohol/food (28%) top the most popular purchases ahead of clothing/footwear (18%) and gift cards/vouchers (14%).
  • More than a quarter (27%) of consumers say they plan to buy their gifts online.

ARA CEO Paul Zahra said while the spending forecasts are down on last year, it’s understandable given the current economic environment.

“There’s no doubt it’s an incredibly difficult period for many businesses and consumers as inflationary pressures take hold. Mortgage holders are under added financial stress with four interest rate hikes in a row, and with consumer confidence waning, it’s not a surprise to see the spending forecasts for Father’s Day down a bit this year,” Mr Zahra said.

“Retailers will still be encouraged by the projections with $735 million set to be spent in-stores and online. Alcohol and food including wine, spirits and confectionary, top the most popular items for Dad as they normally do, while sustainability is on the minds of consumers with more than half planning to buy a gift that’s environmentally friendly.

“Father’s Day is the last gift-giving event before Christmas and provides retailers with a good barometer for how consumer discretionary spending is likely to track over the festive season. The concern is with inflation yet to peak, and cost of living challenges likely to worsen before they get better, consumers will be squeezed even further when it comes to their discretionary purchases.”

** The ARA-Roy Morgan Snap SMS survey was conducted with an Australian-wide cross-section of 2,299 Australians aged 18+ on Monday July 25 – Wednesday July 27, 2022 **


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About us: The Australian Retailers Association (ARA) is the oldest, largest and most diverse national retail body, representing a $400 billion sector that employs 1.3 million Australians and is the largest private sector employer in the country. As Australia’s peak retail body, representing more than 120,000 retail shop fronts and online stores, the ARA informs, advocates, educates, protects and unifies our independent, national and international retail community. To learn more about ARA’s exclusive member benefits and more, visit retail.org.au 



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