Mom Misses Out: Gift Giving Down 14.7 Percent

IBISWorld Investigates The Recession's Impact on Mother's Day Spending

LOS ANGELES, April 29 /PRNewswire/ -- It is all about discounts and downgrades
this Mother's Day, as consumers are scaling back purchases wherever possible.
All holiday-related categories will experience massive declines and total
sales are expected to drop a whopping 14.7 percent, to $12.9 billion,
according to industry research firm IBISWorld.

(Photo: http://www.newscom.com/cgi-bin/prnh/20090429/LA06432)

"The economy is staring at a very steep, downward trajectory," explained
George Van Horn, senior analyst with IBISWorld. "With the economic picture so
unclear, gift giving just isn't in many household budgets - even if it is for
mom."

Those who do make purchases are staying away from department stores and
speciality retailers (i.e. jewelers, florists, consumer electronic stores,
etc.) and are instead opting to shop in discount outlets. The data also shows
a strong trend of shoppers downgrading their gift purchases to smaller,
lower-priced merchandise and services. The reality is that consumers will
choose to make a home-cooked meal for mom rather then spend big in a fancy
restaurant.

The table below represents the percentage change in Mother's Day spending from
last year across a range of popular categories:

2008 2009 Change in
Item Spending Spending Spending From
(millions) (millions) 2008 - 2009

Consumer Electronics $1.36 $0.86 -36.8 percent
Jewelry $2.82 $2.28 -19.1 percent
Other
(clothes, gardening items) $1.72 $1.43 -16.9 percent
Books and CDs $0.57 $0.49 -14.0 percent
Pampering
(manicures, facials) $1.16 $1.02 -12.1 percent
Special Outings
(dinner, brunch) $3.02 $2.73 -9.6 percent
Gift Certificates $1.65 $1.50 -9.1 percent
Greeting Cards $0.70 $0.64 -8.6 percent
Flowers $2.09 $1.92 -8.1 percent
TOTAL $15.09 $12.87 -14.7 percent

"This Mother's Day we are seeing the reality of how difficult the situation
has become," said Van Horn. Two years of economic decline is being squeezed
into one year's reduction in spending.

About IBISWorld, Inc.
Recognized as the nation's most trusted independent source of industry and
market research, IBISWorld offers a comprehensive database of trends and
market analysis on every U.S. industry. With an extensive online portfolio,
valued for its depth and scope, the company equips clients with the insight
necessary to make better business decisions. Headquartered in Los Angeles,
IBISWorld serves a range of business, professional service and government
organizations through more than 10 locations worldwide. For more information
visit www.ibisworld.com or call 1-800-330-3772.

SOURCE IBISWorld, Inc.

Savannah Haspel, Vice President - Media Relations of IBISWorld, Cell,
+1-310-403-6996, Fax, +1-323-297-5444, savannahh@ibisworld.com