2017 US Independence Day Impact on Retail

Transcription

1 2017 US Independence Day Impact on Retail 1) According to the NRF annual survey conducted by Proper Insights and Analytics, 219 million Americans will celebrate the 4th of July holiday this year. 2) Spending on food for the holiday is estimated at $7.1 billion, which is up 4.4% from ) More than 66% of people surveyed reported that they will attend a cookout or barbecue, about 44% will attend fireworks and nearly 14% will travel for the holiday. 4) The average household will spend $73.42 on food for cookouts and barbecues. Deborah Weinswig Managing Director, Fung Global Retail & Technology deborahweinswig@fung1937.com US: HK: CN:

2 2017 US Independence Day Retail Impact According to the National Retail Federation s (NRF) 2017 Annual Independence Day Survey conducted by Prosper Insights & Analytics, more Americans plan to celebrate Independence Day this year than last year. Total spending for the holiday is estimated at $7.1 billion, up 4.4% from last year. Whether it is due to the expected nice weather or favorable gas prices, the survey estimates that 219 million people plan to celebrate July 4th this year. Figure 1. Independence Day Planned Spending (USD Bil.) E The average household estimates it will spend $73.42 on food for cookouts and barbeques, up from last year s average of $ Among those surveyed, 65.5% plan to attend barbecues, 43.6% are going to attend fireworks or a community celebration and 13.5% plan on going to a parade. The 4th of July is a busy time for travel and vacations, and an estimated 13.3%, or 33 million people, plan to head out of town this year. With gasoline prices low, only 18% said gas prices will impact their travel plans. This is down from 21% last year and down from a peak of 59% in 2008, when gas prices were much higher. 2

3 Figure 2. How Americans Plan to Spend Independence Day 0% 20% 40% 60% 80% Cookout/Barbecue/Picnic 65.5% Fireworks/Community Celebradon 43.6% Aeending a Parade 13.5% Travel/Vacadon 13.5% Will Not Celebrate 11.6% Other 8.3% There has been an increasing trend in the popularity of patriotic merchandise for the July 4th holiday. In 2009, 60% of survey respondents said they owned a flag; this increased to an estimated 65% in 2017, a 5- percentage point increase. In addition, the percentage of respondents who own patriotic apparel rose from 45% in 2009 to 53% in Figure 3. Respondents Answers to Which patriotic items do you own? American Flag 60% 65% Apparel (T-Shirt, Hat, etc.) 45% 53% Decorations 29% 40% 3

4 Shoppers Planned Purchases About 28% of Americans plan to purchase additional patriotic merchandise over the next 30 days. Some 39% of Americans said they did not plan to purchase additional items, and 34% said they were not sure. Figure 4 highlights consumer holiday spending trends, and shows that July 4th spending ranks just behind Halloween spending. Figure 4. Holiday Spending (USD Bil.) YoY Change (%) Winter Holidays % Back to School/College % Mother s Day % Easter % Valentine s Day (7.6)% Father s Day % Super Bowl (9.0)% Halloween % Independence Day % St. Patrick s Day % To conclude, Independence Day offers a great opportunity for retailers to boost their sales. They should seize the momentum of holiday spending with more directed marketing campaigns and discounts to attract customers, especially during a particularly difficult year in the industry. 4

5 Deborah Weinswig, CPA Managing Director Fung Global Retail & Technology New York: Hong Kong: China: Matthew Lee Research Assistant Hong Kong: 8th Floor, LiFung Tower 888 Cheung Sha Wan Road, Kowloon Hong Kong Tel: London: Marylebone Road London, NW1 6JQ United Kingdom Tel: 44 (0) New York: 1359 Broadway, 18th Floor New York, NY Tel: FungGlobalRetailTech.com 5