Retailers Could See Higher Gift Cards Sales with Spring and Summer Festivities (May 8, 2014)
The spring and summer months could boost gift card sales as consumers plan to buy them for a variety of occasions, including Mother’s Day on Sunday. More than two-thirds of consumers would buy mom a gift card, according to a survey conducted by the Retail Gift Card Association (RGCA), a trade association of closed-loop gift card retailers. Gift cards to restaurants, spas and department stores are the most popular for moms.
Lots of dads will be receiving gift cards, with home improvement store cards the most popular choice and restaurants a close second. RGCA’s survey was conducted online in April and the first part of this month, with more than 1,100 U.S. adult respondents. Nearly 80 percent of respondents would give a gift card as a wedding present, and 85 percent of consumers would give a gift card to a teacher to show their appreciation.
The survey also indicates that $25 is the most popular denomination of gift card to be given over the next three months, with 44 percent of consumers indicating this is the average amount they will load on each card. Nearly 25 percent will give $50 denominations and 6 percent will give $100.
“It would be wise for retailers to ramp up their card marketing efforts for the spring and summer gifting months,” said Mary Donovan, RGCA executive director. “Consumers have a lot of options, but they’re confident that gift cards deliver.”
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