The strength of January retail sales is reflected in the people who redeem their Christmas gift cards. The average adult received 3.2 gift cards this holiday season, up from 2.5 gift cards last year. Gift cards are more popular and this also carries spending to January. Consumers are also interested in receiving gift cards at other times than just Christmas.
A Deloitte & Touche USA survey found:
- 80% of adults received at least one gift card to a food or clothing store.
- 33% received at least one gift card for a restaurant.
- 14% received a gift card to a mall or shopping center
- 10% received a gift card that could be used at a variety of stores (for example, an American Express gift card).
- 5% received at least one for a personal service such as a manicure or massage.
- 5% received at least one gift card for an internet site (eg, EBay, Amazon)
Price ranges for gift cards ranged from $ 78 for an American Express card, while the lowest was for a $ 32 restaurant card. Bank gift cards are more likely to be used in January. Almost 74% of these gift cards were redeemed or partially redeemed at the end of January.
People were more likely to buy full-price retail items with their gift cards. Many analysts believe that the “giveaway” aspect allows consumers to treat themselves to new products at full price.
Retailers also benefit when consumers redeem a gift card – nearly 62% spend more than the card’s face value. This is an opportunity for retailers to increase sales, as sales cannot be reported until the gift card is redeemed.
Consumers also expressed interest in receiving gift cards for other holidays. For example, a gift card for an “experience” is widely received as a result of people having little time. Getting a gift card for a trip to a restaurant or a massage or even a weekend getaway seems to be a trend that people are enjoying.
Teens enjoy gift cards because they are more eager to shop with their friends and are more likely to redeem their cards faster than adults. The survey showed that teens redeemed 76% of their gift cards vs. 61% of adults.
Gift cards keep giving, after the holidays, especially for retailers. Gift cards are here to stay. Consumers enjoy using them and retailers enjoy getting them. Gift cards are an appropriate gift for all occasions.