Consumers were predicted by CEB TowerGroup to spend $124 billion last year on gift cards, with over $30 billion predicted just for last holiday season alone, and total spending on holiday gift cards has increased 28% since 2006 according to the National Retail Federation. Will the 2015 holidays see the same level of gift card activity?
Bizrate Insight’s latest holiday study found some interesting disparities between generations, as well as the desire to give and receive gift cards.
The survey also revealed an interesting 15 percentage point gap in the desire to give vs. receive gift cards as holiday gifts: 61% of respondents hope to receive gift cards as holiday gifts this year but only 46% plan to give gift cards, which means many gift recipients will be disappointed this holiday season.
Younger generations yearn the most to pick out their own gift, as they prefer to receive gift cards during the holidays above older generations. Beginning at age 50, preference to receive gift cards as holiday gifts drops dramatically.
“This dichotomy of wants – wanting to receive but not to buy – of gift cards presents a strong opportunity for retailers to market gift cards as the perfect gift,” says Hayley Silver, VP of Bizrate Insights. “Recipient demand is strong, but there appears to be a stigma plaguing the purchasing of gift cards that should be surmountable.”
About this Study
This report is based on 11,067 online buyers, ages 18 and over, in the U.S. and Canada. The data was collected between November 1, 2015 and November 8, 2015 via an online survey presented immediately after completing a purchase at one of over 5,000 ecommerce retailers in the Bizrate Insights Network. Retailer participation in the Bizrate Insights Network is free.