Gift Cards Are The New "Go-To" Choice For Holiday Shoppers, Survey Says

By Christine Kern, contributing writer

Gift card growth steady, according to new NRF survey

Retailers need to be sure their gift card displays are fully stocked this holiday season. 

A new Gift Card Spending Survey conducted by the National Retail Federation shows that this year the average person will spend $172.74 on gift cards, up from $163.16 last year, according to a press release.

An October NRF survey also found that 62 percent of shoppers also said that gift cards are their preferred gift to receive, making it the most-requested gift for the eighth year running, according to Gifts and Dec.

The NRF predicts sales of plastic and digital gift cards to reach an all-time record of $31.74 billion, with an average of $47.87 per card. This marks an increase from last year’s $45.16, and NRF reported that total spending on gift cards has jumped 83 percent since 2003, when the NRF began tracking consumer intentions to purchase gift cards.

“No longer impersonal or only about convenience, gift cards have become the perfect, practical gift item for millions of holiday shoppers,” said NRF President and CEO Matthew Shay in the release. “And, as the most requested gift item for eight years in a row, we’re sure there will be plenty of happy individuals this holiday season who can look forward to treating themselves to something shiny and new come January when retailers start to offer promotions on fresh new merchandise.” 

The NRF results demonstrate that gift cards are the go-to gift across age groups, although adults ages 65 and over will spend the most on gift cards at an average of $204.59, while young adults between 18-24 years old will spend the least at an average of $113.75. Men also Additionally, spend significantly more than women on gift cards—$180.81 vs. $165.09, respectively.

And 51.8 percent of shoppers said that they choose gift cards because they allow the recipient to select their own gift, up from 43.1 percent last year and the highest since 2010, when NRF started researching motivation for purchase. Additionally, 25.6 percent said gift cards are easier and faster to buy, and 3.8 percent said this helps them stick to their holiday budget.

 “These days, shoppers simply love the idea of gifting someone they care about with a little ‘free money’ in the form of a gift card,” according to Prosper’s Principal Analyst Pam Goodfellow in the statement. “Consumers young and old want to find the best way possible to create a happy holiday experience for their loved ones, and gift cards are a great option every time.”

The NRF 2014 Gift Card Spending Survey was designed to gauge consumer behavior and shopping trends related to the winter holidays. The survey polled 6,593 consumers and was conducted for NRF by Prosper Insights & Analytics, November 3-10, 2014.