Which retailers are the big winners in Mother’s Day spending?

Posted by AFN Staff Writers on 7th May 2014
Cafes and restaurants will be the big winners this Mother's Day

Australians are expected to spend over $1.4 billion on their mothers this Mother’s Day, with cafes, restaurants and chocolate manufacturers set to see a large share of that spend, according to business information analysts IBISWorld.

The expected Mother’s Day spend, which IBISWorld said is an increase of 2.9 per cent on 2013, is due in part to robust consumer sentiment, healthy disposable incomes and low unemployment. IBISWorld said it anticipated that Australians will spend an average of $61.31 on Mum in the lead-up to 11 May, up from $60.47 in 2013 and more than twice the average spent on Dad in anticipation of Father’s Day.

“There are many reasons why spending on mothers is higher than spending on fathers, including the perceived lack of gift options available for Dad, ” said Dan Ruthven, IBISWorld Australia General Manager. “Whereas food, alcohol, sporting goods and the stalwart hankie and sock gift pack are seen as the presents of choice for Dad, Mum enjoys a far broader selection from bouquets to bottles of champagne, perfume and spa treatments”, he said.

Cafes and restaurants to see much of the Mother’s Day spend

IBISWorld said cafes and restaurants are expected to be the main beneficiaries of Mother’s Day in 2014, with $310.8 million expected to be pumped into the industry as a result of taking Mum out for brunch, lunch or dinner. Spending is expected to increase 4.3 per cent on last year.

“Eating out is easy to organise, relaxing for the entire family and can offer great value for money,” Mr Ruthven said. Dining complements giving well and therefore it is often organised in addition to a present. Celebrity cooking programs will also contribute to attempts at cooking delicious meals in the home kitchen”, he said.

Chocolate and confectionery retailers

IBISWorld said chocolate and confectionery were “keystone” gifts for many special occasions. Spending in this category is expected to increase by a healthy 3.5 per cent in 2014 to reach $45.2 million, with dark chocolate, fair trade and organic brands growing most rapidly.

“Alongside ethical options, premium lines in the confectionery segment will benefit from refined tastes, the desire to treat Mum and the ‘premiumisation’ of Australian palates”, said Mr Ruthven.

Homewares and electrical goods retailers

However, IBISWorld said homewares and electrical goods were likely to grow the most – increasing by 4.7 per cent from 2013 to top $56.0 million.

Kitchen appliances, throws, vases and serving platters are expected to make an appearance on the gift table, in an industry tipped to perform best in 2014. “Mums typically love making a house a home,” Mr Ruthven said. “As a result, many children are willing to risk perceived impersonal gifts and opt for something functional, especially as Mum pursues her goals as the homemaker and career woman”, he said.

Florists and nurseries

IBISWorld said it expected Australians to spend almost $200 million on bouquets, blooms and other greenery on Mother’s Day – an increase of 3 per cent on last year.

“Another loyal centrepiece, luxury bouquets will bring joy and brighten Mum’s day,” Mr Ruthven said. “There will likely be an increase in purchases of fine floral arrangements as opposed to a traditional bunch of chrysanthemums,” he said.

Gift voucher and card sellers

While gift vouchers and cards are expected to remain the third-biggest Mother’s Day spending category, IBISWorld said it anticipated spending on these gifts to increase by 2.2 per cent in 2014, recovering from a downturn last year.

“Gift vouchers are a safe and easy option, especially for those struggling for ideas or time,” Mr Ruthven said. “However, growth in spending on vouchers is limited by the need to demonstrate greater thought – something found more commonly in physical presents or personalised gift experiences”, said.

Cosmetics, perfume and toiletries retailers

Department stores, chemists and online sellers are anticipated to benefit from spending on cosmetics, perfume and toiletries this Mother’s Day, with doting children tipped to spend over $136.1 million restocking the shelves of Mum’s beauty cabinet – an increase of 3.2 per cent on last year.

“A bottle of Mum’s favourite fragrance is seen as a safe option by many generous sons and daughters,” Mr Ruthven said. “An increasing range of new cosmetics, however, has stimulated demand in the segment. This is commensurate with products geared towards the baby boomer cohort who are increasingly concerned with the ageing process”, he said.

Beauty parlours and spas

“Pampering options such as day spa retreats, massages or facials are continuing to grow in popularity as Australians seek value-added gifts that can be purchased online at the last minute”, Mr Ruthven said.

IBISWorld said it expected $126.3 million will be spent on pampering options in 2014, an increase of 2.2 per cent on last year.

Jewellery retailers

IBISWorld said it anticipated spending on jewellery to increase by 3.5 per cent this year to $125.9 million, with earrings, fashion necklaces and sterling silver expected to be the most popular.

Clothing and accessory retailers

Department stores, shoe shops and accessory retailers should benefit the most from Mother’s Day spending on fashion, which is forecast to total $107.7 million this year, according to IBISWorld. Luxurious scarves, winter gloves and premium small leather goods are likely to be popular gift choices.

Greeting card retailers

“The majority of families buy cards for their mothers,” Mr Ruthven said. “Consequently, the low value and consistent demand for this staple prevent purchases of cards from having a significant effect on overall spending on Mother’s Day – although e-cards are making in-roads in this traditional category,” he said.

In 2014, greeting card spending is expected to grow by a modest 0.4 per cent to $58.7 million.