Australians are set to spend $995 million on Mother’s Day this year, up $70 million, or 7.5 per cent, from 2023, research from the Australian Retailers Association (ARA) and Roy Morgan reveals.
However, the increase in spend is mainly due to rising prices as 400,000 fewer people are set to buy Mother’s Day gifts in 2024.
Popular gifts include candles, fragrances, sleepwear and jewellery, while ARA CEO, Paul Zahra, says florists are set to be the biggest beneficiaries.
“With Mother’s Day this weekend, many Australians are planning to show appreciation for their mothers, despite ongoing financial pressures,” he says.
“Whilst the overall spend is higher this year, less Australians will be buying gifts, which shows how cost-of-living pressures are disproportionately affecting families.”
The Mother’s Day spend predictions come after Australian retail sales remained subdued in March 2024, despite an early Easter.
Household goods (down 3.1 per cent), clothing, footwear and accessories (down 0.4 per cent) and department stores (down 0.3 per cent) all recorded declines.
“Australians are still cutting back on spending as the lag effect of interest rate rises continues to take hold. The discretionary categories are being hit the hardest, as seen with household goods, clothing and department stores this month despite mid-season sales commencing earlier because of an earlier Easter.”
National Retail Association deputy CEO, Lindsay Carroll, adds that any momentum gained by Taylor Swift’s concerts were undone in March.
“States that enjoyed a Swift kick to trading last month suffered a comparatively worse decline in March, with Victoria and New South Wales falling by 0.8 per cent and 1.1 per cent respectively, while non-tour states including Queensland (0.4 per cent) earned a slight comeback,” she says.
“Seventy-seven per cent of Australian businesses project their overheads to worsen through the year, so any sugar hit to retail sales is likely to be lost soon after it’s earned.
“High interest rates and low consumer confidence have pushed retailers into a cost-of-trading crisis, putting Australia’s second-largest employer at risk and the government’s May budget is now fast becoming a beacon of hope for many shop owners.”
