Canadian Consumers Catching on to Gift Card Popularity The popularity of gift cards is transcending geographic borders as more Canadian consumers are buying electronic gifts cards.
According to the survey by First Data Prepaid Services’ ValueLink unit, 91% of respondents said they were aware of gifts, with 55% of Canadian consumers saying they purchased or received a gift card in the last 12 months. Last year, Canadian consumers bought an average of 4.8 cards, according to the survey.
The average dollar value per card was $67, but the most common dollar value loaded onto gift cards was $50, the survey found. Consumers cited flexibility, convenience and value as top reasons to buy gift cards, according to the survey.
More than one quarter (27%) of respondents who bought gift cards in the last year spent $20 to $25. Consumers spent an average of $205 on gift cards for the year, the survey said.
Some 71% of Canadian consumers said birthdays topped the list for gift card-giving occasions. Just over half of the respondents (51%) said Christmas was the second most popular occasion to buy gift cards, with anniversaries and weddings taking a back seat at 19% and 8%, respectively, the survey found. Gift cards dropped in popularity for other gift giving, including thank you gifts at 5%, baby showers at 4% and graduation at 3%, respondents said.
Retail stores remain the most popular for gift card buyers, accounting for 77% of all gift cards purchases, the survey found. Restaurants and entertainment-based businesses accounted for a total of 16% of gift card sales, according to the survey. Nearly 9 in 10 gift card buyers (87%) buy gift cards in person, while 13% shop for gift cards online, by phone or company catalog.
“Similar to what we’ve seen in the United States…it is strong awareness of gift cards by the Canadian consumer that will help drive opportunities for new and creative uses of prepaid products for retailers, restaurants, entertainment-based companies and so many others in the months and years ahead,” said First Data Prepaid Services VP-Marketing Karen Larsen in a statement.
Other key findings include:
- Of the 44% who received a gift card in the previous year, more than half, 53% spent more than the initial value of their gift card.
- Nearly half (46%) of those who received a gift card spent the entire value or more within one trip to the store.
- Nearly all purchasers, 93%, said they plan to buy a gift card in the next year.
- Eight in 10 receivers (79%) said they plan to buy a gift card in the year.
The study surveyed 1,015 Canadians 18 and older in August.
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