Gift Cards Becoming A Regular Item On Holiday Shopping Lists
By Anna Rose Welch, Editorial & Community Director, Advancing RNA
80 percent of shoppers plan to give friends and family members holiday gift cards this year, reflecting a change in attitude toward gift cards.
Gift cards are in demand this holiday season, according to The National Retail Federation (NRF) Gift Card Spending Survey. The survey reveals that 8 out of 10 shoppers (80.6 percent) plan to include gift cards in their holiday gift-giving efforts this year. On average, customers will be spending $163.16 on gift cards, a 4 percent increase from the $156.86 they spent last year, making this the highest amount being spent on gift cards in the survey’s 11-year history.
The survey also reveals that customers intend to spend more on the cards they buy, spending an average of $45.16 per card. Gift cards seem to be the most appealing to shoppers older than 65, considering members of this age group surveyed plan to spend $175.96 on gift cards, followed by 35-44 year olds who will spend $171.15. In addition, gift cards will be on more men’s shopping lists than women’s. The results show that men plan to spend nearly $20 more than women on gift cards this year.
The rising popularity of gift cards over the years reflects a significant change in consumer attitudes. While gift cards were originally considered an impersonal gift, they’ve now begun to be accepted as an important opportunity for customers to meet their individual wants and needs. According to Trae Bodge, senior editor of the RetailMeNot.com Real Deal blog, “For some years, gift cards were kind of a strange gift to give, a strange gift to accept. People knew how much others spent on them, and gift cards were considered an impersonal alternative to time spent on thoughtful shopping.” Following the recession however, “People lost the ability to shop for themselves. Gift cards gave them permission to do so.”
While 25.3 percent of those surveyed still believe that gift cards are too impersonal, consumers have begun to recognize the importance of providing an outlet that allows family and friends to select the particular gift they want from a particular vendor. As Prosper Insights & Analytics says, “Shoppers today recognize gift cards as the perfect fool-proof option for friends and family. Gift givers know that many of their loved ones may have been holding back on spending on themselves all year long, and would love nothing more than to receive a gift card that allows them to purchase whatever they want.” Similarly, Prosper consumer insights director Pam Goodfellow says that, depending on the retailer and gift card, there will be plenty of opportunities to personalize gift cards by adding audio, video, or image enhancements.
This year, consumers will primarily be giving their friends and family members gift cards from department stores (40.3 percent) and restaurants (34.2 percent). However, coffee, fuel, electronics and online merchants will also see gift cards being snapped up by customers looking to provide the perfect holiday gift — the gift of choice. As Nimish Thakkar, founder of comparison shopping site DontSpendMore.com says, “They are versatile instruments that allow the recipient to invest in a present that would be more suitable to her or his immediate needs.” Judging from the results of the NRF survey, there will be lots of people hitting the stores armed with gift cards to spend a little bit on themselves following the holiday season.