Father’s Day 2012 – Retail Spending Up

Strategy Plan One

June 15, 2012 

Father’s Day 2012 – Trends in Retail Spending

Business and marketing plans can be developed around the volumes of business that calendar events can bring.  Certain days and periods in the calendar, such as Christmas and Easter can make or break retail and service businesses.  However, many spots in the calendar create billions in economic activity for the US business sector.

Similar to Mother’s Day earlier this year, retail spending around Father’s Day has been projected to increase favorably to $12.7 Billion.  According to a recent survey conducted by National Retail Federation, spending will be up by an estimated 10% this year, with estimated average spending at $117.14.

fathers day 2012 - retail spending

Of the projected $12.7 Billion in Father’s Day spending, here are the big-ticket items Dad’s will be receiving:

  • $2.3 Billion on taking Dads to special outings
  • $1.7 Billion on electronic gifts
  • $1.7 Billion on clothing for Dads
  • $645 Million on books and music, and 
  • $641 Million estimated on sporting goods for gifts

Whether you are a retail business with a store front or online, take note of the survey data on where purchases have been estimated to occur:

  • 41.6% will shop for Father’s Day gifts at department stores
  • 34% will hit a discount store for a cheap Father’s Day gift
  • 28.6% at electronic stores, and 
  • 28.4% of all purchases will occur through online retail sites
Moving with the mobile trends in recent news, 26.7% of smartphone users will utilize their devices to research and purchase gifts.
As you develop your business and marketing plans for your retail or services business, keep on track with the massive potential opportunities around calendar events, such as Father’s Day.
Other relevant blogs and articles on economic indicators:

Strategy Plan One

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© 2012 Strategy Plan One

Hopping US Retail Statistics Around Easter

Strategy Plan One

March 31, 2012 

The National Retail Federation (NRF) has released some estimated retail statistics for US consumer spending in the 2012 Easter period.   This could be noted as more positive economic indicators, with projected spending to increase for this year’s season.  Retail entrepreneurs and business owners should tune-in to lucrative events in the annual calendar, as all pose to be potentially lucrative if you tap into some niche retail areas.

Here are some highlights on 2012 estimated US retail spending around Easter, based on a NRF survey:

  • Estimated average spending on retail merchandise, food, candy: $145.28
  • 2012 estimated average spending is up by +11% over 2011 ($131.04)
  • Total estimated retail spending for Easter 2012:  A big $16.8 Billion

Easter Calendar - spending

Here are the biggest categories in a breakdown of the estimated retail spending around Easter 2012:

  • Fashion & Accessories:  $3.0 Billion
  • Easter Candy:  $2 Billion
  • Easter meals & food:  $5.1 Billion
  • Easter gifts & cards:  $2 Billion

It is interesting to note that the average estimate spending is $44.34 for Easter meals, $20.57 for Easter Gifts, $10.50 on flowers, $9.07 for Easter decor, and from the half that buy greeting cards, an average of $7.04 on greeting cards.

Easter Shopping

Some interesting trends are highlighted in this NRF survey around how and where consumers will shop:

  • 63.5% will shop at the local discount store
  • 42.6% will shop at a department store for gifts; highest percent in the survey’s history
  • 8.7% will shop online, represents a 4% increase over last year
  • 25.4% will shop at a specialty retail store

Similar to other calendar events, Easter consumer retail spending can bring significant revenues to your business, if you target customers in niche areas.  If you are in retail in these areas, do not overlook the power of retail during special periods.  Plan well in advance for periods of retail opportunities.

Strategy Plan One

http://strategyplanone.com

Business information, resources and tips for the entrepreneur

© 2012 Strategy Plan One

Economic Indicators, Interest Rates Outlook Positive for US Businesses in 2012

Strategy Plan One

March 18, 2012 

economic indicatorsUS Economic Indicators

As an entrepreneur, review and keep track of US economic indicators and trends.  With the latest report on US Job Recovery in February, many indicators are looking positive.  A recent Bloomberg report cites positive trends in indicators such as the Gross Domestic Product, consumer confidence, the housing industry and interest rate figures.

Economic Indicators – Gross Domestic Product

The Gross Domestic Product (GDP) is the indicator of the market value of goods and services produced in the country through a specific period.  The sources in the Bloomberg report estimate that GDP will grow by 2.2% for 2012 in the US, up from 1.7% in 2011.  Good potential news in the country as recent manufacturing reports have been favorable.  Also an emphasis on “Made in the US” strategy will help boost GDP as the focus may be away from many foreign manufactured or supplied goods.

economic indicatorsEconomic Indicators – Consumer Confidence

Consumer confidence is the measurement of how positive, how comfortable the consumer is with the economy and their own personal finances.  It is usually tied to growth in consumer spending in the economy.  Business Week reported a rise in consumer confidence to a four-year high, and further stated a Bloomberg Consumer Comfort index rising.  Improved industry sectors and employment may be the reasons behind a recent rise in consumer confidence.

Economic Indicators – Housing Industry

A Washington Post article is one of those reports pointing to positive trends, showing the housing market stabilizing and in some sectors, housing sales improving.  With improvement in the housing industry, many other indicators such as employment, retail and material sales could improve.  However, in a fragile economy many of these industries are linked, and so is growth.  Factors such as the increasing fuel could have a negative impact on these recent housing market improvements.

Economic Indicators – Interest Rates

The Bloomberg report sources indicate that interest rates will remain steady and low over the next two years.  This is potentially good news for entrepreneurs who will be looking to start-up new ventures and need commercial loans.  This is also favorable news for existing businesses looking to expand and in need of additional funds.  Within your financing mix, commercial loans take up the majority percentage of all financing.  The low rates will help lower the overall cost of borrowing.

As an entrepreneur or business owner, carefully watch and review economic indicators and trends, as those indicators most likely signal potential impacts on your business and position in the economy.

Strategy Plan One

http://strategyplanone.com

Business information, resources and tips for the entrepreneur

© 2012 Strategy Plan One