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Mother’s Day Sales Will Grow 3.7 Percent

|Includes:AAPL, AM-OLD, AMZN, FLWS, GPS, Tiffany & Co. (TIF)
By IBISWorld Retail Analyst Nikoleta Panteva

This year, Mother’s Day is just two Sundays after Easter, which may hurt sales. Consumers are projected to spend 3.7 percent more on Mother’s Day purchases in 2011 than they did in 2010, to total $15.6 billion, but this growth is slightly low compared with the 5.0 percent and 5.8 percent sales growth that occurred at Easter and Valentine’s Day, respectively. However, most popular gift categories will still perform well this holiday:

Gift Category

 

2009

($ billion)*

2010

($ billion)*

2011

($ billion)*

% annual change

Clothing

$1.28

$1.38

$1.41

2.0%

Jewelry

$2.33

$2.46

$2.61

6.0%

Flowers

$2.08

$2.18

$2.36

8.0%

Greeting cards

$0.69

$0.70

$0.72

2.5%

Electronics

$2.06

$2.17

$2.33

7.4%

Personal services

$1.09

$1.15

$1.16

1.4%

Special outings

$2.33

$2.46

$2.48

0.9%

Gift certificates

$1.61

$1.67

$1.64

-1.7%

Other

$0.88

$0.89

$0.91

2.0%

TOTAL

$14.35

$15.07

$15.63

3.7%

Click to enlarge

*All figures are in constant 2011 dollars

Flowers and jewelry, the perennial go-to presents for Mom, will likely experience high growth this year. Flower companies like 1-800-Flowers (NASDAQ:FLWS) are making it easier to buy gifts by offering bouquet and gift baskets that are available for same-day local delivery.

Jewelry sales have already begun to rebound and special holidays like Mother’s Day give these companies an additional boost in sales.  Major jewelry retailer Tiffany & Co. (NYSE:TIF) is even offering special Mom-centric pieces like personalized charms and pearl necklaces. The return to luxury spending, coupled with the sentimental meaning of jewelry gifts, will bode well for precious metal retailers this year.

Right on the heels of flowers and jewelry, which account for 15.1 percent and 16.7 percent of total Mother’s Day sales, electronics are expected to capture much of consumers’ dollars this year. The category, which ranges from kitchen appliances to e-readers, will likely record a 7.4 percent increase this holiday, accounting for 14.9 percent of total Mother’s Day sales and benefiting companies like Amazon (NASDAQ:AMZN) and Apple (NASDAQ:AAPL) due to the Kindle and iPad.

Other categories are not expected to record such strong growth, primarily due to competing festivities like Easter and Cinco de Mayo. Expenditure on special outings, like brunch or dinner, is expected to grow only incrementally, by 0.9 percent. Greeting cards, which are typically a staple of the holiday, are only slated to grow by 2.5 percent, impacting companies like American Greetings Corporation (NYSE:AM).  Time-crunched consumers will likely opt for more convenient purchases like flowers over cards.

Gift certificates are expected to lose sales this year. As consumers return to spending their hard-earned dollars, IBISWorld anticipates that they will choose more personalized gifts, like jewelry. Therefore, certificate sales are likely to decline by 1.7 percent. For the same reason, clothing purchases at stores like The Gap (NYSE:GPS) are expected to take a back seat this year; however, the rising price of cotton will mitigate losses, resulting in a total gain of 2.0 percent through the holiday. Other items, like physical books and DVDs, will likely grow 2.0 percent.

 

Stocks: TIF, FLWS, AM-OLD, AMZN, AAPL, GPS