A Dad’s Day disconnect

Father’s Day is June 20 and this year dad wants pricey electronics. At least that is the appearance Target created in its weekly ad, which features 15 items displayed on a four-page oversize insert with the headline, “Top 15 Gifts for Dad.” All of the items are related to the electronics, entertainment and gaming categories, and only five of the fifteen featured products cost less than $100 and many are considerably more expensive. There is a 40-inch Samsung LED HDTV for $1,139, a Nikon D5000 for $699 or an Xbox Elite gaming system for $299.

Consumers in today’s economy don’t have that kind of money to spend for Father’s Day. According to the National Retail Federation, the average expenditure per person this year will total $94.32 compared with $90.89 last year. Nearly $10 billion is forecast to be spent, and discount stores will be the preferred destination for gift givers, with about 34% of those surveyed indicating they would buy dad’s gift at a discount store.

As for what they intend to buy, it extends well beyond the electronics and entertainment categories Target featured most prominently. Electronics will account for about $1.2 billion. The biggest expenditure category, accounting for $1.9 billion, is a special outing such as dinner or brunch. About $1.3 billion will be spent on clothes, followed by $749 million for greeting cards, $578 million on tools or appliances, $550 million on home improvement or gardening tools and $400 million on automotive accessories. Dad can also expect to receive gift cards with three out of 10 surveyed indicating they will give a gift card, resulting in an estimated $1.2 billion in spending.