‘The National Retail Federation (NRF) is predicting a 1.5% increase in US consumer spending on jewelry this Mother’s Day, despite financial pressures arising from COVID-19.
Americans will shell out $5.27 billion on the category this year, compared with $5.19 billion in 2019, the trade organization reported last week. Jewelry will retain its position as the top-grossing item for the annual event, coming in ahead of outings, electronics, gift cards and flowers.
The average price customers are willing to pay for each jewelry purchase is $40, on par with the previous year, with 41% of men choosing the category versus 28% of women. Overall spending for Mother’s Day, which falls on May 10, is predicted to increase 7% to $26.7 billion.
Although the number of people marking Mother’s Day this year has decreased due to the coronavirus pandemic, those who are celebrating are willing to spend more. Of the approximately 80% who said they would celebrate, consumers were expected to spend an average of $205 per purchase, $8 more than in 2019, the NRF explained.
“Families are in an unusual position this year,” said Phil Rist, executive vice president of strategy at Prosper Insights, which conducted the survey. “Some consumers are looking to make up for the fact they can’t take mom out by sending her something a little extra special this year.”
The items on which consumers will spend has also changed as a result of the virus, with categories such as electronics, housewares and gardening tools seeing significant boosts, while special outings and flowers have fallen in popularity.
Spending on special outings is forecast to drop 12% to $4.07 billion, the NRF estimated, with electronics expected to increase 34% to $2.93 billion. Housewares and gardening tools are predicted to rise 35% to $1.51 billion.
“While fewer consumers say they are planning traditional outings, 46% still want to celebrate mom with a special meal, day out or other activity,” the NRF said. “These plans may be more aspirational than realistic given the current environment, but they do show that consumers are eager to recreate a sense of normalcy in these times.”
The survey found 43% of those planning to buy gifts felt choosing something unique was the most important factor. Some 41% cited gifts that created a special memory as their number-one consideration when shopping for their mothers. Due to the coronavirus outbreak, 25% of those surveyed thought it was important to find a gift that was convenient for them to buy, while 17% were looking for something cheaper.
Consumers between 35 and 44 are likely to spend the most, at an average of $296, compared with $248 in 2019. Men will lay out approximately $266 per gift, while women will spend about $146.’
Source – Rapaport
Image by Jan Steiner from Pixabay