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Are Gift Cards the Best Gift?
January’s retail sales strength is reflected in people redeeming their Christmas gift cards. The average adult received 3.2 gift cards this holiday season, up from 2.5 gift cards last year. Gift cards are more popular and this also moves spending into January. Consumers are also interested in receiving gift cards at other times that just at Christmas.

A survey by Deloitte & Touche USA found:

80% of adults received at least one gift card to an apparel or food store

33% received at least one gift card to a restaurant

14% received one gift card to a mall or shopping center

10% received a gift card that could be used at a variety of stores (e.g., an American Express gift card)

5% received at least one for a personal service such as a manicure or massage

5% received at least one gift card for an Internet site (e.g., ebay, Amazon)

Price ranges for gift cards ranged from $78 for an American Express card, while the lowest was for a $32 restaurant card. Bank gift cards are more likely to be used in January. Nearly 74% of these gift cards have been redeemed or partially redeemed by the end of January.

People were more likely to buy full price retail items with their gift cards. Many analysts believe the “gift” aspect allows consumers to treat themselves to new full-priced merchandise.

Retailers also benefit when consumers redeem a gift card, nearly 62% spend more than the face value of the card. This is an opportunity for retailers to increase sales, as sales cannot be reported until the gift card is redeemed.

Consumers also expressed an interest in receiving gift cards for other holidays. For example, a gift card for an “experience” is widely received as a result of people being time-pressed. Getting a gift card for a trip to a restaurant or massage or even a weekend getaway seems to be a trend people are enjoying.

Teens enjoy gift cards because they are more eager to shop with their friends and are more apt to redeem their cards quicker than adults. The survey showed teens redeemed 76% of their gift cards vs. 61% of adults.

Gift cards keep on giving, after the holidays, especially for retailers. Gift cards are here to stay. Consumers enjoy using them and retailers enjoy getting them. Gift cards are an appropriate gift for all occasions.

Stuart Simpson is the author and runs a web site to promote and gather information about gift cards at http://www.best-gift-card.com/articles/index.html


Related Readings
Are Gift Cards the Best Gift?
The average adult received 3.2 gift cards this holiday season, up from 2.5 gift cards last year. Gift cards are more popular and this also moves spending into January. Consumers are also interested in receiving gift cards at other times that just at Christmas.
The gift of plastic
A gift card looks like a good deal all around. Just plunk down some cash, and you've got a present that's universally useful and easy to wrap and send through the mail. If you're on the receiving end, you have an item that never has to be returned because it's the wrong color or size.
Gift cards that stop giving
Pay attention to gift-card ground rules if you intend to give a card this season, or if you've received one. Details about fees and such are usually on the card itself, on an accompanying sleeve, or on the store's or bank's Web site. Keep the receipt you get when you order the card, and write down the card's ID number.
Teens say gift cards are great
Two-thirds of American teenagers have purchased one or more gift cards during the last 12 months, with the majority reporting year-round gift card purchasing; not just during winter holidays, according to a survey released today of 1,600 college-bound teens.
Say It With A Card
Consumers fell in love with electronic strip gift cards this holiday season. Sales rose an estimated 18 percent to $43.5 billion for the entire year. The affair is more than just a passing fancy.
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