Holiday Gift Cards Spending Jumps 25%
A record $35 billion is expected to spent on gift cards this holiday season, a 25% jump over the $27.8 billion spent last year, a recent survey found.
The survey, by Archstone Consulting, cites the multiple channel appeal of gift cards and the increased ease of obtaining cards at virtually any type of retail outlet, including drug stores and supermarkets, as primary reasons for gift card spending to be in a sharp ascendancy.
The study also found the average American family would spend $184 on gift cards during the holidays.
“Retailers have proven to be resourceful in finding opportunities to expand their gift card offerings across all retail channels, which gives the consumer the power to purchase these cards at a variety of participating locations throughout the country,” said Andrew Buss, vice president of strategic innovation for the Hazelton Group, an Archstone consulting company, in a statement.
Consumers like the time savings and convenience of gift cards.
They take the “hassle” out of making difficult gift-giving decisions for family members, Buss said.
Fifty-six percent of all holiday gift cards will be redeemed within the first month of receipt. Luxury, automotive and music gift cards are typically the first cards redeemed during that first month. Entertainment, food and beverage cards are usually used within three months. Travel and home improvement were less likely to be spent within three months, the survey found.
Surprisingly, men spend more on gift cards than women and tend to purchase gift cards earlier in the holiday shopping season. Men outspend women by $61 to $42, according to the survey. The research also found that 90% of high gift card purchases, $200 or more, were made by men.
