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The Honolulu Advertiser
Posted on: Saturday, May 10, 2008

Mother's Day spending likely to be scaled back

By Lisa Cornwell
Associated Press

Hawaii news photo - The Honolulu Advertiser

Shoppers inspect the floral displays at a Kroger supermarket in Cincinnati. Moms may not be getting quite as much this year for Mother's Day as consumers feeling the economic pinch watch their spending.

AL BEHRMAN | Associated Press

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CINCINNATI — Some moms may not be getting both chocolates and a bouquet for Mother's Day this year as consumers watch their spending. Even businesses that traditionally benefit from the holiday, like florists and restaurants, are offering special offers and products.

Analysts don't expect a dramatic drop in Mother's Day spending — which ranks fourth behind the winter holidays, back-to-school buying and Valentine's Day — but think it will be lighter despite the extra cash some consumers have from their tax refunds and stimulus payments.

"I'd be very surprised if there's any big jump in spending, and I'd be surprised if rebates get earmarked for Mother's Day," said Ken Perkins, president of research firm Retail Metrics LLC. He thinks spending will probably be about flat for Mother's Day.

With middle- and lower-income consumers especially feeling the pinch from rising food and gas prices, mothers may be the ones urging their loved ones to scale back.

Rosalie Pryor of Cincinnati told her 11 children just to get her cards this year instead of flowers and gifts.

"Some of them are working two jobs just to take care of their families," said Pryor. "With everyone living from paycheck to paycheck, I'd rather them use the money to pay bills."

The National Retail Federation expects people to spend slightly less this year on Mother's Day gifts than last year, and for shoppers to concentrate on one major present rather than many smaller ones.

Instead of buying several gifts, Kevin Ford, 41, of Fort Worth, Texas, and his siblings were replacing a dead tree in their mother's yard and doing some overall yard cleanup.

"It was something she really needed, and we could do the work ourselves," said Ford.

With Mother's Day the third-largest card-sending holiday, greeting card companies aren't worried. Hallmark Cards Inc. just released a line of cards priced at $5.99 that allow senders to record a 10-second message on a computer chip in the cards that also contain pre-recorded music.

Mother's Day accounts for one-fourth of the floral purchases made for holidays annually, according to the Society of American Florists.

Jim McCann, founder and CEO of 1-800-Flowers, said that the company has not raised its prices despite its own costs going up, and was working with its suppliers to find ways to avoid having to do so.