Are Gift Cards the Best Gift?

January's retail sales strength is reflected in peopleredeemed by the end of January.
redeeming their Christmas gift cards. The averagePeople were more likely to buy full price retail
adult received 3.2 gift cards this holiday season,items with their gift cards. Many analysts believe
up from 2.5 gift cards last year. Gift cards arethe "gift" aspect allows consumers to treat
more popular and this also moves spending intothemselves to new full-priced merchandise.
January. Consumers are also interested inRetailers also benefit when consumers redeem a
receiving gift cards at other times that just atgift card, nearly 62% spend more than the face
Christmas.value of the card. This is an opportunity for
A survey by Deloitte & Touche USA found:retailers to increase sales, as sales cannot be
- 80% of adults received at least one gift card toreported until the gift card is redeemed.
an apparel or food storeConsumers also expressed an interest in receiving
- 33% received at least one gift card to agift cards for other holidays. For example, a gift
restaurantcard for an "experience" is widely received as a
- 14% received one gift card to a mall orresult of people being time-pressed. Getting a gift
shopping centercard for a trip to a restaurant or massage or
- 10% received a gift card that could be used ateven a weekend getaway seems to be a trend
a variety of stores (e.g., an American Express giftpeople are enjoying.
card)Teens enjoy gift cards because they are more
- 5% received at least one for a personal serviceeager to shop with their friends and are more apt
such as a manicure or massageto redeem their cards quicker than adults. The
- 5% received at least one gift card for ansurvey showed teens redeemed 76% of their
Internet site (e.g., ebay, Amazon)gift cards vs. 61% of adults.
Price ranges for gift cards ranged from $78 forGift cards keep on giving, after the holidays,
an American Express card, while the lowest wasespecially for retailers. Gift cards are here to stay.
for a $32 restaurant card. Bank gift cards areConsumers enjoy using them and retailers enjoy
more likely to be used in January. Nearly 74% ofgetting them. Gift cards are an appropriate gift
these gift cards have been redeemed or partiallyfor all occasions.