Most consumers (91.4%) plan to give one to three gift cards as gifts in the next three months, according to a survey released in June by the Retail Gift Card Association (RGCA). The survey also found that 88.5% of consumers redeem a retail gift card within six months of receipt. “This survey shows that our member companies are rising to the challenge of increasing consumer confidence in retail gift cards,” said Rebekka Rea, Executive Director of RGCA. “This survey shows that gift card continue to evolve in terms of their utility for many gifting occasions and they continue to be coveted by recipients."
The RGCA survey drew more than 1,000 respondents who shared their attitudes, behaviors and preferences when giving and receiving retail gift cards. The survey also uncovered current consumer gifting and spending trends.
Additional findings from the RGCA report include:
- 87.7% of consumers spend the same amount, or more than the amount of the retail gift card;
- 84.6% like receiving retail gift cards because they can purchase what they want; and
- 73.2% prefer to give a retail gift card when giving a gift from a group of people.
“This is indicative of the American consumer's response to the state of today's economy,” noted Rea. “Consumer confidence is low at the moment, which lends itself to purchasing more practical items. When budgets are tight, gift card recipients may choose to redeem their gift card for items like food, fuel and clothing, school supplies, etc.”
Rea added: “The increase in planned gift card gifting reflects the high level of confidence that consumers have in gift cards. Closed loop and retail branded gift cards never expire and never have fees, which ensures the recipient receives full value of the card.”
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