Report: Holiday Gift Card Sales Growth Doubles

Consumers this holiday season spent seven percent more on gift cards than in 2018, doubling the estimated 3.4 percent increase in overall holiday retail sales, a new report from Blackhawk Network has found.

Supporting the increase was a corresponding 4.5 percent increase in digital gift card sales and what the report describes as “rapidly increasing popularity of curated cards.” While physical gift cards continue to be the most popular option among consumers, the report says, ecommerce sales were up more than 12 percent this holiday season and digital cards accounted for close to one fifth of holiday gift card sales in 2019. Close to one in four surveyed respondents reported receiving digital gift cards.

“Eighty percent of consumers reported receiving a digital or physical gift card for the 2019 holidays, making the cards a significant source of revenue for retailers. I expect that post-holiday gift cards redemptions will drive an economic impact for retailers in early 2020,” said Theresa McEndree, vice president of marketing at Blackhawk Network, in a press release. “With more than half of consumers expecting to spend as much as $30 more than the value of their gift cards—and many planning to spend them within weeks of receiving them—gift cards are poised to make a huge boon for retailers in Q1.”

According to Blackhawk’s findings, half (53 percent) of consumers surveyed plan to use their gift cards right away to take advantage of post-holiday sales. Close to three in five consumers plan to spend more than the value of their gift cards and 52 percent said they would spend as much as $30 more.

According to a press release, the report was compiled via internet-based survey conducted by Murphy Research on behalf of Blackhawk Network between December 26–29, 2019. The sample size included over 3,000 respondents ages 18+.

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