Come St. Patrick's Day, revelers are expected to pull out their wallets for a cornucopia of purchases beyond green beer.
According to the National Retail Federation's (NRF) 2007 St. Patrick's Day Consumer Intentions and Actions Survey, consumers will spend an estimated $3.76 billion on St. Patrick's Day. That figure, which includes money spent in bars and restaurants, is up from estimated spending of $2.69 billion in 2006 and nearly double the $1.94 billion spent in 2005.
The average consumer is expected to dish out $34.89 celebrating the holiday compared to last year's $27.94 and 2005's $22.95.
The retail industry group said the projected hike in spending reflects the increasing popularity of the holiday and one other x-factor.
“With St. Patrick's Day falling on a Saturday this year, Americans will be in the mood to celebrate,” said NRF president and CEO Tracy Mullin. “In addition to traditional retailers, St. Patrick's Day will provide a great opportunity for restaurants and bars to see sales increases.”
But the trend also reflects increased overall spending around holidays as a whole. For instance, consumers spent an estimated $4.96 billion on Halloween this past year, up from an estimated $3.3 billion in 2005. With the jump, Halloween became the sixth-largest spending holiday after: Winter Holidays ($457.4 billion estimated), Valentine's Day ($13.7 billion), Easter ($12.63 billion), Mother's Day ($13.8 billion), and Father's Day ($9.01 billion).
According to the St. Patrick's Day survey, the most popular way consumers plan to celebrate is simply by wearing green (82.6 percent). Nearly one-third (30.5 percent) said they planned to attend a party at their favorite restaurant or bar, though 33.9 percent planned to stay home to make a special dinner. Nearly 17 percent will attend a private party and 22.2 percent will decorate their home or office.
In response, retailers this year are offering a wide amount of product beyond green T-shirts, party supplies, and corn beef. Old Navy and Target are offering shamrock underwear and pajamas. Urban Outfitters is selling vintage Irish-themed T-shirts for $28. Dierbergs Markets in Chesterfield, MO, launched an "Everything-Irish" Celebration Menu campaign offering made-from-scratch Irish meals.
At Wal-Mart, consumers can buy the St. Patrick's Day Pampering Spa Basket ($24.86) featuring shamrock cookies, green tea body cream, green tea bath salts, green tea bath soap, bath fizzers, green pillar candle, chocolate shamrocks and a chocolate coin. Other non-traditional items increasing in popularity include greeting cards, shamrock cookie cutters, gift baskets and pet products.
While the retail opportunity seems evident for non-traditional holidays, the risks are different than the traditional winter holiday season. Peak selling is only done a few days before the holiday and then steep liquidation sales are required the day after.
Discussion Questions: What do you think of the growing retail sales opportunities around holidays such as St. Patrick's Day? How can retailers best capitalize on such opportunities while minimizing the risks of the short selling period?