Los Angeles — Moms will be receiving fewer and less-expensive consumer electronics for Mother’s Day, according to a new report by industry research firm IBISWorld.
CE spending for the holiday is expected to drop 36.8 percent year over year to $860 million, the firm projected, as wary consumers cut back on expenses.
“With the economic picture so unclear, gift giving just isn’t in many household budgets — even if it is for mom,” said IBISWorld senior analyst George Van Horn.
Shoppers are downgrading their gift purchases to smaller, lower-priced merchandise and services, the firm’s research shows, and those who do make purchases are staying away from speciality retailers and department stores in favour of discount outlets.
Sales of books and CDs are expected to fall 14 percent to $490 million, and total Mother’s Day sales including flowers, cards and special outings will drop nearly 15 percent to $12.9 billion, the firm projected.
“This Mother’s Day we are seeing the reality of how difficult the situation has become,” as two years of economic decline are being squeezed into one year’s reduction in spending, Van Horn said.