Gift Cards on Most Holiday Shopping Lists
Figuring out what people want for the holidays might not be that difficult
after all. According to recent research, consumers ranked gift cards as the
number one most requested gift for the fourth straight year.
The National Retail Federation’s (NRF) 2010 Gift Card Consumer Intentions
and Actions survey, conducted by BIGresearch, found Americans will spend
an average of $145.61 on gift cards this year, up from $139.91 in 2009. Overall,
sales of gift cards are expected to reach $24.78 billion for the year when
all is said and done. Nearly three-quarters of consumers are expected to
purchase at least one gift card.
Consumers are not only going to buy more gift cards this year, but they will
also spend more on those they buy. The average amount spent per card, according
to the research, will jump to $41.48 this year versus $39.80 in 2009.
The top category of gift cards will be for department stores (39.2 percent),
followed by restaurants (33.4 percent), bookstores (23.7 percent), consumer
electronics stores (19.0 percent), entertainment venues such as movie theaters
(14.1 percent) and coffee shops (13.9 percent).
"This holiday season we expect Americans to gravitate toward both sale
and non-sale items, including gift cards, which in recent years have been passed
up for heavily discounted merchandise," said Matthew Shay, president and
CEO of NRF, in a statement. "With people focusing less on price and more
on value this holiday season, Americans may choose to buy gift cards due to
their convenience and popularity among gift recipients."
Discussion Questions: Considering the increased demand in the market, what
can merchants due to increase the sale of their gift cards this holiday season?
Have you seen gift card promotions that work particularly well?
- Gift Givers Listening to Recipients as Gift Card Spending Expected to Rise
– Total Gift Card Spending to Reach Estimated $24 Billion – National Retail
- Making the Most Out of Gift Cards This Holiday Season – National Retail