Holiday Gift Card Spending Expected to Rise
According the the National Retail Federation's holiday survey, gift cards are the most requested holiday gift for the fourth year in a row.
Not only will more people purchase gift cards this holiday season, but the average amount spent on each card will increase as well ($41.48 vs. $39.80 last year). According to the survey, 77.3 percent of shoppers will buy at least one gift card.
At a time when spending on oneself has dwindled, nearly half of holiday shoppers surveyed (45.8%) say that they buy gift cards because it allows the recipient to select their own gift, and an additional 17.8 percent say convenience plays a role, as gift cards are easier and faster to buy.
While some shoppers love buying gift cards, others prefer to stick to traditional gifts. Those who hesitate to buy gift cards cite that the main reason is because the gift seems impersonal (24.1%). Additionally, despite new gift card regulations, some (18.9%) are concerned the card will expire or have added fees. Other reasons some people are less inclined to buy gift cards include their desire to buy items on sale to stretch their dollar further (8.9%), concern the recipient will lose it (5.9%), fear the retailer will go out of business (3.2%) and not knowing which company the recipient would want a card from (9.5%).