2017 US Independence Day Impact on Retail
KEY POINTS
- According to the NRF annual survey conducted by Proper Insights and Analytics, 219 million Americans will celebrate the 4th of July holiday this year.
- Spending on food for the holiday is estimated at $7.1 billion, which is up 4.4% from 2016.
- More than 66% of people surveyed reported that they will attend a cookout or barbecue, about 44% will attend fireworks and nearly 14% will travel for the holiday.
- The average household will spend $73.42 on food for cookouts and barbecues.
2017 US Independence Day Retail Impact
According to the National Retail Federation’s (NRF) 2017 Annual Independence Day Survey conducted by Prosper Insights & Analytics, more Americans plan to celebrate Independence Day this year than last year. Total spending for the holiday is estimated at $7.1 billion, up 4.4% from last year. Whether it is due to the expected nice weather or favorable gas prices, the survey estimates that 219 million people plan to celebrate July 4th this year.
The average household estimates it will spend $73.42 on food for cookouts and barbeques, up from last year’s average of $71.34. Among those surveyed, 65.5% plan to attend barbecues, 43.6% are going to attend fireworks or a community celebration and 13.5% plan on going to a parade.
The 4th of July is a busy time for travel and vacations, and an estimated 13.3%, or 33 million people, plan to head out of town this year. With gasoline prices low, only 18% said gas prices will impact their travel plans. This is down from 21% last year and down from a peak of 59% in 2008, when gas prices were much higher.
There has been an increasing trend in the popularity of patriotic merchandise for the July 4th holiday. In 2009, 60% of survey respondents said they owned a flag; this increased to an estimated 65% in 2017, a 5-percentage point increase. In addition, the percentage of respondents who own patriotic apparel rose from 45% in 2009 to 53% in 2017.
Shoppers’ Planned Purchases
About 28% of Americans plan to purchase additional patriotic merchandise over the next 30 days. Some 39% of Americans said they did not plan to purchase additional items, and 34% said they were not sure. Figure 4 highlights consumer holiday spending trends, and shows that July 4th spending ranks just behind Halloween spending.
To conclude, Independence Day offers a great opportunity for retailers to boost their sales. They should seize the momentum of holiday spending with more directed marketing campaigns and discounts to attract customers, especially during a particularly difficult year in the industry.
