Gas prices won’t affect spending for dear ol’ dad

Filed under: Retail |

Even though high gas prices are a pain in the pocketbook these days, consumers are still expected to dish out nearly $10 billion on dads this Father’s Day.
And, that’s even more than they spent last year.
According to the National Retail Federation’s 2007 Father’s Day Consumer Intentions and Actions Survey, the average person will spend $98.34 on the June 17 holiday, up from $88.80 last year.
“Gas prices have little effect on what consumers spend for those who matter most,” said NRF President and CEO Tracy Mullin. “Retailers will see increased sales of clothing and tools as well as gift cards, which allow dad to treat himself to something he chooses.”
Most consumers plan to shop for Father’s Day gifts at a department store this year (34.2 percent), with discount stores (28.7 percent), specialty stores such as electronics or greeting card stores (29.6 percent), specialty clothing stores (7.3 percent) and online shopping (18.7 percent) being other favorite destinations.
As in previous years, the most popular gift for dad will be a greeting card (69.9 percent), but he can also expect to be treated to a special outing such as dinner (42.7 percent).
Other popular gift items include apparel (37.1 percent), a gift certificate or gift card (29.9 percent), consumer electronics or computer related accessories (17.8 percent), sporting goods or leisure items (13.9 percent), tools or appliances (13.6 percent) and home improvement or gardening tools (12.4 percent).
The majority of shoppers will buy gifts for their father or stepfather (50.1 percent), but buying for other family members and friends also is popular. More than a fourth of consumers (28 percent) will buy a gift for their husband and 7.7 percent will splurge on their son. Consumers will also spend on their grandfathers (3.8 percent), brothers (4.6 percent) and godfathers (1.1 percent).
Though the holiday is for dad, men will still be spending more than women this year, $100.72 on average versus $96.08 for women.

LERPnet popularity growing

Even though awareness of organized retail crime has never been higher, senior loss prevention executives admit the problem is getting worse, and more are being convinced to join LERPnet.
The National Retail Federation created LERPnet — the Law Enforcement Retail Partnership Network — in April. It’s a secure Web database that helps retailers and law enforcement officials fight organized retail crime.
According to the NRF’s third annual Organized Retail Crime Survey, more than three-fourths of retailers (79 percent) said their company has been a victim of organized retail crime within the past year,
The survey also found that 71 percent of retailers say they have noticed an increase in organized retail crime activity during the past 12 months, up from 48 percent during 2006.
LERPnet has 45 member companies, including five of the nation’s top 10 retailers. Some of the newest subscribers include: Albertson’s, Army & Air Force Exchange Service, AutoZone, Circuit City, Coach, Kohl’s Corp., J.C. Penney, Macy’s, Safeway, Saks Fifth Avenue, Sears Holdings Corp., Tuesday Morning, Vitamin Shoppe, Walgreen Co., Wal-Mart and Williams-Sonoma.
Retailers of any size, in any sector can join LERPnet for $1,200 a year.
Once organized retail crime rings steal merchandise from stores, they commonly sell the goods at flea markets or through online auction sites.
According to the survey, 61 percent of retailers have identified or recovered stolen merchandise from a fence location, up from 59 percent last year. And nearly three of four retailers (71 percent) also say they’ve identified or recovered stolen merchandise from an eFence operation, up from 67 percent last year.
Awareness of the problems is growing.
Nearly 57 percent of retailers said their company’s top management understands the issue, compared to only 41 percent in 2006, and one in 10 retailers is spending more than $1 million dollars each year to fight and prevent organized retail crime.
The survey results include responses from 99 retailers representing all sectors of the industry, including drug, supermarket, general merchandise, home improvement, apparel, department and specialty stores.

New kiosks at Briargate shops

The Glass Hatter and Comcast have joined ColoRox as summer kiosk tenants at The Promenade Shops at Briargate.
The Glass Hatter will return this year to provide sunglasses and accessories.
Comcast will supply cable television information as well as conduct a survey to determine the feasibility and interest in bringing cable to the Briargate Business Campus area.
ColoRox is a new line being offered by Maureen Christopher, vice president of Tayco Screen Printing & Embroidery.
Joan Johnson covers retail for the Colorado Springs Business Journal.