Apr 30, 2013

IBISWorld Forecasts Mother’s Day Sales to Grow 0.2 Percent in 2013

As spare time declines and more Americans return to work, items that are easy to purchase, such as flowers and gift certificates, will be popular Mother’s Day gifts this year, according to industry research firm IBISWorld. Consumers, who have slowly returned to splurging on gifts for holidays such as Mother’s Day since the 2008 recession, are projected to spend 0.2 percent more on Mother’s Day purchases in 2013 than they did in 2012, to total $17.1 billion.

Last year, spending on mom improved 6.5 percent as per capita disposable income experienced strong growth. Disposable income has continued to expand in 2013, largely due to the declining unemployment rate as more Americans return to work. These simultaneous trends will, in turn, cause Mother’s Day spending to slightly shift away from more personalized, time-consuming gifts to convenient gifts such as flowers and gift certificates. Time-pressed individuals will increasingly reach for their laptops and smartphones to have flowers delivered or to order gift cards instead of searching out the perfect necklace or home decor.

Most popular gift categories will perform well this holiday, but flowers and gift certificates are forecast to experience the highest growth. Flower companies like 1-800-Flowers are making it easier to buy gifts by offering bouquet and gift baskets that are available for same-day local delivery. Flower sales are projected to increase 3.9 percent from 2012, while gift certificate sales rise 2.2 percent.

Sales of greeting cards, which are generally a common purchase during this holiday, are projected to decline 5.1 percent as consumers increasingly turn to e-cards, e-mail and social networks to send holiday greetings.

Sales of electronics, which made a strong showing last year thanks to innovations in and new releases of tablet computers and e-readers, will also decline this year. The estimated 5.3-percent drop is attributable to the lack of significant technological change in these devices over the past year.

Other categories are not expected to change much over last year. Tried-and-true mom-pleasers like jewelry and special outings, such as brunch or dinner, will hold steady as a share of Mother’s Day purchases, making up 18.8 percent and 18.2 percent, respectively. Sales of jewelry will not experience any growth from 2012, while sales of special outings are expected to grow an incremental 0.4 percent. Spending on personal services, such as massages and manicures, will increase a slightly stronger 0.8 percent, and spending on clothes will increase 0.7 percent.

About IBISWorld, Inc.

Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US 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.