Moms, dads and grads: Opportunity springs eternal

By Chris Curtin

July 17, 2017 – It’s that time of year again—spring has sprung and April showers have given way to May flowers, which signals that it’s time to take a moment to celebrate our loved ones: Mother’s Day, Father’s Day and graduation season represent three occasions ripe with opportunities for giving. Naturally, I’m keeping my eye out for how that translates into the way consumers spend.

Let’s look at Mother’s Day first, as it’s just around the corner. By May 14, kids, grandkids and parents will have spent a projected $23.6 billion, according to the National Retail Federation (NRF).¹ Father’s Day numbers aren’t quite as steep—the 2016 report projected a total spend of $14.3 billion (the NRF has yet to release predictions for 2017).² Similarly, last year’s projected total spend for graduation came in at $5.4 billion.³ All in all, no small sum for three key annual moments. 

When Visa analyzed our own historical spend data over the months of May and June, we noticed spikes in spend over key weekends like Mother’s Day and Father’s Day. We crunched the numbers to help us better understand where and how consumers spend their money during that time period. Here’s what we found: Restaurants and quick-service restaurants saw a 33% jump in Visa spend from 2015 to 2016. Looks like celebratory meals on Mother’s or Father’s Day or for graduation are only becoming more popular and standard over time. With growth like that in mind, restaurants can hedge their bets that treating a loved one to a meal out will continue to trend throughout the 2017 season. 

Take a look at the chart below to see other areas of growth for Visa transactions during moms, dads and grads season.

Next, we’ll pause to consider who spends those dollars: Everyone. Truth be told, there is no one type of consumer here. At the start of 2017, the NRF commissioned a survey among 7,406 consumers, ranging from ages 18 to 65+, and 85% of the respondents said they planned to celebrate Mother’s Day this year.⁴

I get it—narrowing our consumer base to “Everyone” doesn’t help much. Let’s dive deeper: The same NRF survey showed that as consumers increased in age, they became less likely to celebrate Mother’s Day. However, compared to their younger counterparts, the older generations generally said they are planning to spend more money when they did celebrate. For example, respondents in the 18-24 age group are planning to spend an average of $18.95 on flowers, compared to respondents in the 55-64 age group who are planning to spend an average of $35.04.⁴ So, let’s not rule anyone out just yet. 

Next, let’s consider where consumers are planning to do their Mother’s Day shopping: Unsurprisingly, the youngest consumers said they will online shop more than any other age group (44.7% for ages 18 - 24). More than half said they will also spend their time hunting for the perfect gift at a department store (56.2% for ages 18 - 24).⁴ The oldest consumers prioritized specialty stores over any other option (24.4% for ages 65+), followed closely by local and small businesses (23.1% for ages 65+).⁴ Understanding who shops where, marketers can tailor messaging across their different platforms accordingly. 

For Mother’s Day, Father’s Day and graduation, consumers planned to snap up greeting cards, gift cards, clothing, electronics, special outings and more, opening up the opportunity to merchants to highlight the best goods and services to fit each occasion. Based on the NRF 2016 and 2017 survey results, moms may be more likely to receive jewelry, dads may be more likely to receive special outings and grads will be the ones needing the necessities to prepare for their next life journey. 

Looking ahead, one thing is certain for moms, dads and grads: The average consumer will spend their money in more ways than one to celebrate their loved ones. On average for a Mother’s Day gift in 2017, consumers are projected to spend $186.39,¹ on Father’s Day gifts in 2016, they were projected to spend $125.92,² and on graduation gifts in 2016, they were projected to spend $106.45.³ A greeting card here, a token gift there and a nice dinner out sure does add up.

Make no mistake, the spring season is blooming with strategic marketing opportunities for merchants across all categories, from restaurants to retailers to apparel. Count no one out—it may not be Christmas, Hanukkah or Kwanzaa just yet, but it’s still a season for celebrating… and spending.