Oklahoma City -- Seventy-four percent of shoppers plan to give one or more gift cards this holiday season, and nearly 30% planned on giving five or more gift cards, according to a study by the Retail Gift Card Association (RGCA). The results show that gift cards drive store traffic, with 78% of consumers planning to spend their cards at the retailer's brick-and-mortar location
The Holiday Gift Card Trend Tracker Survey finds that the number of gift cards consumers plan to purchase as gifts this year increased by 71%.
"This survey shows ways that retailers can compete for savvy consumer dollars by adding holiday promotions and offering online and mobile gift card options such as e-gift codes,” said Jennifer Tramontana, spokesperson for the Retail Gift Card Association.
Additional key insights from the survey include:
Restaurants and department stores will benefit most from gift card promotion this holiday: Consumers are most likely to give cards from these types of retailers (57% plan on giving a restaurant gift card this year), and they most want to receive cards from these businesses as well (60% hope for a department store gift card).
Convenience and practicality drive the decision to give gift cards: 79% of consumers give gift cards because they know the recipient can purchase what they want, and 70% give them for convenience.
Consumers are embracing more online and mobile options: 56% plan to stay home and shop on cyber Monday, and 83% like the option to send physical gift cards or e-codes.
Promotions drive gift cards sales: 17% of consumers wait for a promotion before buying a gift card, and 23% almost always look for promotions at competing retailers before deciding where to buy a gift card.