Australians are expected to spend $30 million less on Father's Day gifts this year than in 2023 due to the cost-of-living crunch, according to the Australian Retailers Association (ARA).

The industry group is predicted sales of $820 million on Father's Day gifts this year, a decrease from last year's $850 million. Despite this, Father's Day remains a seasonal highlight for retailers. Father's Day in Australia is on Sunday, 1 September 2024.

"We predict a dip in spending habits this year, with many households continuing to feel the cost-of-living crunch, but Father’s Day remains a seasonal highlight for Aussie retailers and this year will be no exception," says Paul Zahra, CEO of the ARA. "The spending dip is concerning given we have seen significant population growth across the past year, and it speaks to continued tough times for many retailers despite the seasonal pockets of positivity."

The top three gift categories are alcohol and food (34%), clothing, shoes, and sleepwear (15%), and books, games, and music (15%). More than 8 million shoppers are planning to buy gifts, spending around $101 each, compared to last year's average spend of $112, a decrease of 10%.

Around 800,000 Australians, or 10% of those planning to buy a gift, have been buying their gifts early to take advantage of mid-year/end of financial year sales, spending $75 million so far. 53% of these early-bird buyers are stocking up on discounted items.

"This is the perfect opportunity for traders to promote Father’s Day-inspired gifts, and to make it easy as possible for shoppers to find the perfect present," Zahra said. "We know that households are doing it tough right now, so retailers need to focus on delivering value to entice shoppers over the Father's Day period."