Dad gets downsized

Retailers are compelled to run promotions around Father’s Day, but this year promises to be a tough sell, according to research from the National Retail Federation. The group warned last week that spending this year will decline to $90.89, from $94.54 last year, according to a survey that measured consumers’ spending intentions.

“Along with the usual ties, gift givers will be looking into items that Dad can enjoy with the whole family,” said NRF president and CEO Tracy Mullin. “Retailers will offer specials on new grill sets, sporting and gardening equipment and even electronics as the holiday rolls around.”

Father’s Day falls on June 21 this year, one week later than last year. The survey found people will spend the most ($1.9 billion) on a special outing, such as a dinner or a sporting event, but clothing still ranks high among gift givers, who are expected to shell out $1.3 billion. Others will treat Dad to gift cards ($1.2 billion), electronics ($1 billion), books or CDs ($548 million), home improvement items ($522 million) and sporting goods ($502 million).

Discount stores and department stores will be primary destinations, with each expected to account for slightly more than 33% of spending. Others will get their gifts at such specialty stores as electronics and home improvement stores (26.8%), online (17.9%), specialty clothing stores (6.1%) or through a catalog (2.8%).