2007 Holiday Gift Card Survey
Archstone Consulting has announced the results of its 2007 Holiday Gift Card Survey examining the shopping habits of more than 1,000 web users across various age groups, gender and region. Based on the survey results, Archstone projects gift card purchases reaching an all-time high at $35 Billion this holiday season, compared to last year’s actual spending figure of $27.8 Billion, a 25 percent increase year-over-year.
“Retailers and consumers both realize the tremendous flexibility and value gift cards provide,” commented Andrew Buss, Vice President, Strategic Innovation, for The Hazelton Group (an Archstone Consulting company). “Retailers have proven to be resourceful in finding opportunities to expand their gift card offerings across all retail channels, which gives the consumer the power to purchase these cards at a variety of participating locations throughout the country.”
Consumers like the time savings and convenience gift cards provide them, Buss explains. “When it comes to selecting a present for a family member or friend, it is often difficult to decide what to buy – gift cards instantly take the hassle out of this decision.”
The survey findings also revealed that approximately 56 percent of all holiday gift cards will be redeemed within the first month of receipt. According to Michael Unger, a Director in Archstone Consulting’s Consumer Products and Retail Practice, “Retailers that alter first quarter pricing strategies to take advantage of the prevalence of gift cards will capture more margin in January, traditionally a month of clearance markdowns.”
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