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Gift Card Popularity on the Rise


Most consumers have had good experiences with gift cards. 81% of those who participate in the use of gift cards have good experiences with them. That positive experience translates to repeat business.

More than three quarters of respondents to a nationwide pole plan to buy gift cards this year, a total 78.6% compared to 64.9% during the 2006 holiday season. Not only are more shoppers buying gift cards, each shopper is buying a number of cards at one time. It is expected that each consumer will buy 36% more gift cards in the 2007 holiday season, for an average of almost four gift cards each.

What does this mean for retailers?
This means retailers selling gift cards will witness a continuing shift of revenue from when Christmas gift cards are sold to when these cards are redeemed and the money actually hits the books.

 

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