RGCA Forecasts Big Gift Card Sales This Summer
More than 70 percent of shoppers will be giving gift cards this spring and summer during the assortment of gift-giving holidays that are approaching, including graduations, Father's Day, and weddings, according to research from the Retail Gift Card Association. The RGCA confirmed that the gifts remain popular with recipients as well, with 95 percent of consumers hoping to receive gift cards this spring and summer season.
"Large-scale retail trends, like movement towards omnichannel and increasing awareness of digital offerings, continue to be reflected in consumers' use of gift cards," Timm Walsh, RGCA chairman of the board, said in a statement. "And our biannual research has confirmed again that shoppers still consider gift cards to be safe, preferred gift choices. This spring and summer season should bring increased sales of this favored gift product."
The RGCA surveyed more than 1,000 U.S. consumers on their use of gift cards and habits for giving and receiving the cards, the release stated.
The RGCA study also found:
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Gift cards' popularity continues to grow: Just last year, two thirds of shoppers planned to buy gift cards during the spring and summer gift season, and that number has grown to more than 70 percent this year.
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Omnichannel flexibility is key: In tandem with the growing consumer demand for omnichannel connectivity across all facets of retail, 80 percent of gift givers want their recipients to have the option of redeeming gift cards online or in person, and 87 percent of recipients want to be able to redeem via either channel as they choose.
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Awareness of e-gift cards is growing: As more shoppers receive e-gift cards, the awareness of this type of gift is growing. 27 percent of gift recipients have now received e-gift cards, a 5 percent increase from last holiday season.
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Physical gift cards still reign supreme: Most shoppers (56 percent) plan to give physical gift cards exclusively, and the most common denomination is between $25 and $50. Reasons why physical gift cards remain preferred include wanting to give a physical or packaged gift, when the recipient doesn't have a smart phone and because the gift giver simply prefers physical gift cards to e-gifts.
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All gift cards are not created equal: The most popular types of gift cards this spring and summer for givers and recipients alike include those to restaurants (47 percent), department stores (30 percent) and online marketplaces such as Amazon (29 percent).
Source: Retail Customer Experience
MEDIA CONTACT:
KATY LASEE | MARKETING DEPT.
651 554 8533
KRLasee@traveltags.com
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