| FOR IMMEDIATE RELEASE | 4/24/2009 |
Mom Misses Out: Gift Giving Down 14.7 Percent
IBISWorld Investigates The Recession’s Impact on Mother’s Day Spending
LOS ANGELES – Apr. 29, 2009 – It is all about discounts and downgrades this Mother’s Day, as consumers are scaling back purchases wherever possible. All holiday-related categories will experience massive declines and total sales are expected to drop a whopping 14.7 percent, to $12.9 billion, according to industry research firm IBISWorld.
“The economy is staring at a very steep, downward trajectory,” explained George Van Horn, senior analyst with IBISWorld. “With the economic picture so unclear, gift giving just isn’t in many household budgets – even if it is for mom.”
Those who do make purchases are staying away from department stores and speciality retailers (i.e. jewelers , florists,
consumer electronic stores, etc.) and are instead opting to shop in discount outlets. The data also shows a strong trend of shoppers downgrading their gift purchases to smaller, lower-priced merchandise and services. The reality is that consumers will choose to make a home-cooked meal for mom rather then spend big in a fancy restaurant.
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The table below represents the percentage change in Mother’s Day spending from last year across a range of popular categories:
| Item | 2008 Spending | 2009 Spending | Change in Spending From 2008 – 2009 |
| Consumer Electronics | $1.36 | $0.86 | -36.8 percent |
| Jewelry | $2.82 | $2.28 | -19.1 percent |
| Other (clothes, gardening items) | $1.72 | $1.43 | -16.9 percent |
| Books and CDs | $0.57 | $0.49 | -14.0 percent |
| Pampering (manicures, facials) | $1.16 | $1.02 | -12.1 percent |
| Special Outings(dinner, brunch) | $3.02 | $2.73 | -9.6 percent |
| Gift Certificates | $1.65 | $1.50 | -9.1 percent |
| Greeting Cards | $0.70 | $0.64 | -8.6 percent |
| Flowers | $2.09 | $1.92 | -8.1 percent |
| TOTAL | $15.09 | $12.87 | -14.7 percent |
“This Mother’s Day we are seeing the reality of how difficult the situation has become,” said Van Horn. Two years of economic decline is being squeezed into one year’s reduction in spending.
About IBISWorld, Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of trends and market analysis on every U.S. industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information visit www.ibisworld.com or call 1-800-330-3772.