News

Gift card spending reaches all-time high

November 13, 2013

It's personal, it's practical, and it comes with a price tag that matches anyone's budget — it's a gift card, and this season 8 in 10 (80.6 percent) shoppers will look to add these small gift items to their baskets.

According to NRF's Gift Card Spending Survey conducted by Prosper Insights & Analytics, holiday shoppers will spend an average of $163.16 on gift cards, up 4.0 percent over the $156.86 they spent last year and the highest amount in the survey's 11-year history. Total spending on gift cards will reach $29.8 billion.

"Shoppers today recognize gift cards as the perfect fool-proof option for friends and family," said NRF president and CEO Matthew Shay. "And traditional gift cards aren't the only winners this holiday season, as more and more Americans are tied to their mobile devices, we expect digital gift cards to be especially popular with consumers."

According to NRF's first 2013 holiday survey, released in October, 6 in 10 (59.4 percent) of those polled said they'd like to receive gift cards this year, the seventh year in a row gift cards have topped holiday celebrants' wish lists.

Consumers will also spend more on the cards they buy: Those planning to buy gift cards will spend an average $45.16 per card, up from $43.75 last year and another survey high. Shoppers over 65 years of age will spend the most on gift cards at an average of $175.96, followed by 35–44 year olds who will spend $171.15 on average. Additionally, men will spend nearly $20 more than women on gift cards this holiday season ($171.35 vs. $155.42 respectively).

Department stores (40.3 percent) and restaurants (34.2 percent) will be the top choices for those giving gift cards, but nearly 1 in 5 (19.0 percent) will give the gift of a hot cup of coffee — up from 13.0 percent in 2009. Additionally, 20.1 percent will purchase gift cards from an electronic store and 12.7 percent will head to an online merchant.

With gas prices hovering around $3.19, some may see relief at the pump this holiday season from their friends or family members. According to the survey, 12.0 percent of shoppers will buy gift cards from gas stations, up from 11.0 percent last year and the highest amount seen in five years.

"Gift givers know that many of their loved ones may have been holding back on spending on themselves all year long, and would love nothing more than to receive a gift card that allows them to purchase whatever they want," said Prosper consumer insights director Pam Goodfellow. "Shoppers hoping to add an extra touch to their gift cards will have plenty of opportunities to add audio, video or image enhancements to select retailers' gift cards, making even the smallest gift still very personal."

When it comes to why people do or don't buy gift cards, most agree (43.1 percent) that letting the recipient choose their own gift is what influences their purchases. However, some still feel gift cards are too impersonal (25.3 percent).

Read more about consumer behavior.