Report: Mother’s Day No Panacea for Consumer Electronics29 Apr, 2009 By: Erik Gruenwedel
The ongoing downturn in consumer electronics spending apparently won’t let up, even for Mother’s Day, according to a new report.
Sales of consumer electronics around the holiday are projected to fall nearly 37% to $860 million from $1.36 billion in 2008, according to IBISWorld, a Los Angeles-based research firm.
Two years of economic decline are being squeezed into one year’s reduction in consumer spending, resulting in significant declines in all holiday spending with Mother’s Day just the latest non-event at retail, according to IBISWorld.
Total spending on Mother’s Day is projected to decline nearly 15% to $12.87 billion from $15 billion in 2008.
Categories include jewelry (down 19.1%), clothes and gardening (down 17%), books and music CDs (down 14%), manicures and facials (down 12.1%), dinner and brunch (down 9.6%), gift certificates (down 9%), greeting cards (down 8.6%), and flowers (down 8.1%).
“This Mother’s Day we are seeing the reality of how difficult the situation has become,” said George Van Horn, senior analyst with IBISWorld. “The economy is staring at a very steep, downward trajectory. With the economic picture so unclear, gift giving just isn’t in many household budgets – even if it is for mom.”