Gift Card Buyers, Recipients Want It All: Plastic, Electronic, Omnichannel (May 27, 2015)
Gift card providers should expect stronger sales as the weather gets warmer and summer celebrations get into full swing, according to the latest research from the Retail Gift Card Association (RGCA). More than 70 percent of shoppers reported they will be giving gift cards for events, such as graduations, Father’s Day and weddings, up from approximately two-thirds of consumers last year. What’s more, 95 percent of consumers hope to receive gift cards this summer. The most popular types of gift cards among givers and recipients include those for restaurants (47 percent), department stores (30 percent) and online marketplaces (29 percent).
The study, which surveyed more than 1,000 U.S. consumers, also indicated that 80 percent of gift givers want recipients to be able to redeem their gift cards online or in person, and 87 percent of recipients want to be able to redeem via either channel. The most common gift card denomination is between $25 and $50.
Awareness of e-gift cards is growing among consumers as well. According to the survey, 27 percent of recipients have now received e-gift cards, a 5 percent increase from last year. However, 56 percent of shoppers plan to give physical gift cards exclusively because they prefer to give a physical or packaged gift, the recipient doesn’t have a smartphone or because the gift giver simply prefers physical gift cards to e-gifts, according to the report.
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