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Cafes, restaurants to benefit as Mother's Day spending tipped to grow

30 April, 2014

With Mother's Day around the corner, business information analysts at IBISWorld reveal Australians are expected to spend over $1.4 billion indulging their mums this year – an increase of 2.9 per cent on 2013 – with cafes and restaurants set to be among the big winners.

Robust consumer sentiment, healthy disposable incomes and low unemployment are expected to contribute to increased spending on Mum this year, according to IBISWorld Australia General Manager Dan Ruthven.

IBISWorld anticipates that Australians will spend an average of $61.31 on Mum in the lead-up to 11 May, up from $60.47 in 2013 and more than twice the average spent on Dad in anticipation of Father's Day.

"There are many reasons why spending on mothers is higher than spending on fathers, including the perceived lack of gift options available for Dad. Whereas food, alcohol, sporting goods and the stalwart hankie and sock gift pack are seen as the presents of choice for Dad, Mum enjoys a far broader selection from bouquets to bottles of champagne, perfume and spa treatments," said Ruthven.

Ruthven tipped cafes and restaurants to be the main beneficiaries of Mother's Day in 2014, with $310.8 million expected to be pumped into the industry as a result of taking Mum out for brunch, lunch or dinner. However, homewares and electrical goods are likely to grow the most - increasing by 4.7 per cent from 2013 to top $56.0 million.

Cafes and restaurants

Taking mum out for brunch, lunch or dinner will remain a highly popular show of love this Mother's Day, with spending forecast to increase 4.3 per cent on last year.

"Eating out is easy to organise, relaxing for the entire family and can offer great value for money. Dining complements giving well and therefore it is often organised in addition to a present. Celebrity cooking programs will also contribute to attempts at cooking delicious meals in the home kitchen," Ruthven said.

Chocolate and confectionery retailers

Chocolate and confectionery are keystone gifts of many special occasions. Spending is expected to increase by a healthy 3.5 per cent this year to reach $45.2 million, with dark chocolate, fair trade and organic brands growing most rapidly.

"Alongside ethical options, premium lines in the confectionery segment will benefit from refined tastes, the desire to treat Mum and the premiumisation of Australian palates," said Ruthven.

Homewares and electrical goods retailers

Kitchen appliances, throws, vases and serving platters are expected to make an appearance on the gift table, in an industry tipped to perform best this year.

"Mums typically love making a house a home. As a result, many children are willing to risk perceived impersonal gifts and opt for something functional, especially as Mum pursues her goals as the homemaker and career woman," said Ruthven.

Florists and nurseries


IBISWorld expects Australians to spend almost $200.0 million on bouquets, blooms and other greenery on Mother's Day - an increase of 3.0 per cent on last year.

"Another loyal centrepiece, luxury bouquets will bring joy and brighten Mum's day. There will likely be an increase in purchases of fine floral arrangements as opposed to a traditional bunch of chrysanthemums," said Ruthven.

Gift voucher and card sellers

While gift vouchers and cards are expected to remain the third-biggest Mother's Day spending category, IBISWorld anticipates spending on these gifts to increase by 2.2 per cent in 2014, recovering from a downturn last year.

"Gift vouchers are a safe and easy option, especially for those struggling for ideas or time. However, growth in spending on vouchers is limited by the need to demonstrate greater thought – something found more commonly in physical presents or personalised gift experiences," said Ruthven.

Cosmetics, perfume and toiletries retailers

Department stores, chemists and online sellers are anticipated to benefit from spending on cosmetics, perfume and toiletries this Mother's Day, with doting children tipped to spend over $136.1 million restocking the shelves of Mum's beauty cabinet – an increase of 3.2 per cent on last year.

"A bottle of Mum's favourite fragrance is seen as a safe option by many generous sons and daughters. An increasing range of new cosmetics, however, has stimulated demand in the segment. This is commensurate with products geared towards the baby boomer cohort who are increasingly concerned with the ageing process," said Ruthven.

Beauty parlours and spas

"Pampering options such as day spa retreats, massages or facials are continuing to grow in popularity as Australians seek value-added gifts that can be purchased online at the last minute," Ruthven said.

IBISWorld expects $126.3 million will be spent on pampering options in 2014, an increase of 2.2 per cent on last year.

Jewellery retailers

Most mums love baubles, bells and a little bling. IBISWorld anticipates spending on jewellery to increase by 3.5 per cent this year to $125.9 million, with earrings, fashion necklaces and sterling silver expected to be the most popular.

Clothing and accessory retailers

IBISWorld expects department stores, shoe shops and accessory retailers to benefit the most from Mother's Day spending on fashion, which is forecast to total $107.7 million this year. Luxurious scarves, winter gloves and premium small leather goods are likely to be popular gift choices.

Greeting card retailers

"The majority of families buy cards for their mothers. Consequently, the low value and consistent demand for this staple prevent purchases of cards from having a significant effect on overall spending on Mother's Day - although e-cards are making in-roads in this traditional category," Ruthven said.

In 2014, greeting card spending is expected to grow by a modest 0.4 per cent to $58.7 million.

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