It would be easy for us to wax lyrical about having a gift card scheme for your shopping centre. We can talk about the benefits of how having a gift card programme will increase footfall in your centres, boost your revenue and create customer loyalty. But without hard facts about gift cards to back this up, it’s just supposition.

What do the stats say? Has the gift card market bounced back after Covid, is it still growing, and are people buying gift cards in a cost-of-living crisis?

Facts About Gift Cards

Let’s take a breath and unpick the data. Every month, the Gift Card and Voucher Association (GCVA) publishes details of what’s happening in the gift card sector. We’ve dived into the data and picked out the highlights for you:

• Overall, there has been strong growth in the gift card sector, with it bouncing back after Covid restrictions. In the coming years, the global market for gift cards is expected to grow by 15.4% (compound annual growth rate) between 2021 and 2028.

• Retail gift card purchasing is at its highest level since the GCVA began tracking purchases in May 2020. Despite economic challenges, shoppers continue to prioritise key occasions and prefer giving a gift card over cash, hoping the recipient will treat themselves.

• Overall growth in the gift card space was 7.2% like-for-like sales for the half year (H2 2022 v H1 2022) across all sectors – that includes retail gift cards and gift cards for leisure activities like travel, theatre tickets, spa days, etc.

• The overall proportion of UK consumers purchasing gift cards for someone else was 12.8% in June 2023 (a slight increase on May 23).

• In June 2023, 30% of consumers bought gift cards, actual gifts or made self-use gift card purchases. We still like to mark occasions like birthdays, Father’s Day and Mother’s Day, although, interestingly, Valentine’s Day was not as popular this year compared with 2022.

Physical versus Digital Gift Cards

• Digital gift cards continue to rise in prominence, with the rate at 27.2% in June 2023, up by 1.7% from the previous year.

• Convenience is a significant driver of this growth, with 36.2% of digital gift card purchasers saying it was easier than buying someone a physical gift.

•  Overall online gift card purchasing is a growing channel, experiencing growth of 17.4% in the second half of 2022.
• However, people like the tangible feel of a physical gift card and demand for both physical and digital gift cards remains robust.

Gift Cards for Rewards

• The proportion of gift card buyers purchasing digital gift cards through an employee benefit programme was at the highest level in June 2023 compared to the last peak of November 2022. It was 21.8%. This is likely because they are an effective way to gain additional benefits or extra funds to make the purchaser’s money go further.

• Offering gift cards represents a significant opportunity for employers to incentivise or reward their employees. 56% of people said they are more likely to be positively influenced by such a reward. A gift card allows people to choose their own reward, something appealing specifically to them.

• Let’s also remember that people buy gift cards for self-use. It can be an effective way of saving or earning extra rewards towards a chosen product or service. In fact, in June 2023, the proportion of those buying gift cards for self-use, citing that it was ‘to help save money’ was at 44%.

Boosting Spend and Brand Awareness

• Gift cards can help boost brand awareness – many people use them for a known or favourite brand, while others choose one that’s unfamiliar to the recipient. Overall, 41.8% of gift card users said they made a one-off purchase after being introduced to a new brand on receipt of a gift card, and around a fifth (20%) became new regular customers. This figure is significantly higher for Gen Z and Millennials.

• Two-thirds of gift card holders typically spend more than the value of the gift card they receive. In particular, younger shoppers are willing to spend far greater than the initial gift card values – up to triple the amount.

Other Juicy Gift Card Stats

• Industry experts are encouraging gift card retailers to focus on the P’s – People and Planet. Then profits will follow.

• Offering sustainable gift cards represents an opportunity for growth as shoppers become more eco-savvy. 69% of GCVA members are either offering a green gift card option or are looking into it for the near future.

All these stats point towards a robust gift card sector. As consumers, we all have pressure on our disposable income. Increasingly, as shoppers, we need to budget and spend wisely. This hasn’t dampened our appetite to mark key occasions, though and gift cards play a big part in this.

Contact the Shopping Centre Gift Card team to find out more about introducing or switching to our flexible programme.

Notes

The GCVA is a membership body representing key players in the £7 billion gift card market. Their monthly research surveys a nationally representative cohort of 2000 shoppers.

Unless otherwise linked, research and statistics are taken from the GCVA Consumer Reports March – July 2023, plus the State of the Nation 2023 White Paper.