Gift Cards Outrank Traditional Presents As Favorite Holiday Gifts

"It's not surprising that gift cards continue to grow in popularity each holiday season," said Teri Llach, group vice president of Blackhawk Network's product development and marketing group. "People who gave or received them in previous years have enjoyed their experiences with them and have become repeat customers."

Consumer Reports cited in a recent survey that gift cards are second behind clothes as the most-desired holiday gift. Industry analysts expect gift card sales to reach $80 billion in 2006 with holiday purchases accounting for approximately 60 percent of those sales.

Shopping expert Alison Deyette, who offers gift giving advice on "Today" and "The View," attributes ease, convenience and variety as the main appeal of gift cards. She recommends purchasing gift cards at grocery, drug or convenience stores where a collection of gift cards from a variety of retailers are sold.

"Shoppers can go to a single location and pick up a different card for every person on their holiday list. The idea of one-stop shopping helps relieve a lot of stress during the holidays, and there's never a worry about getting the wrong size or style when the recipient can choose exactly the gift he or she wants from a favorite store," Deyette said.

Picking out just the right gift for oneself proved an important feature of gift cards among consumers according to the Blackhawk Network survey, with 88 percent of respondents stating "I can get what I want" as the number one reason they like receiving gift cards.

Similarly, 73 percent of gift givers stated their primary reason for purchasing gift cards as "I want the person receiving the gift to get what he or she wants."

Other reasons consumers choose gift cards include eliminating worry about getting the wrong item (52 percent), the convenience of not having to find a specific gift (40 percent) and sticking to a budget (26 percent), according to the survey.

Blackhawk Network's Gift Card Mall carries gift cards from more than 100 different brands to appeal to shoppers of varying demographics according to Llach.

"We have something for everyone, from restaurant gift cards to cards for exclusive department stores as well as sports and entertainment venues," said Llach.

The Gift Card Mall can be found at Safeway, A&P, Bashas', BI-LO, Food Lion, Giant Food Stores, Hannaford Supermarkets, Harmon, King Kullen, Kings, Lowes Foods, Martin's Food Markets, ShopRite, Stop & Shop, Tops Markets and United Supermarkets. Retailers featured include Barnes & Noble, Best Buy, BLOCKBUSTER, Chili's Grill & Bar, iTunes, Macy's and Sears.