Gift cards could enjoy resurgence this year as consumers shift their gaze from heavily discounted merchandise back to America's favorite gift, according to NRF’s 2010 Gift Card Consumer Intentions and Actions survey.
NRF estimates Americans will spend an average of $145.61 on gift cards, up from $139.91 last year. Total gift card spending is expected to reach $24.78 billion.
Gift cards have topped consumers’ wish lists for the fourth year in a row, according to the survey.
“This holiday season we expect Americans to gravitate toward both sale and non-sale items, including gift cards, which in recent years have been passed up for heavily discounted merchandise,” said NRF President and CEO Matthew Shay. “With people focusing less on price and more on value this holiday season, Americans may choose to buy gift cards due to their convenience and popularity among gift recipients.”
The survey indicates that the average amount spent on each gift card will increase to $41.48 from $39.80 last year. According to the survey, 77.3% of shoppers will buy at least one gift card.
Those who hesitate to buy gift cards cite that the main reason is because the gift seems impersonal (24.1%). Despite new gift card regulations, some (18.9%) are concerned the card will expire or have added fees. Other reasons include not knowing which company the recipient would want a card from (9.5%) and their desire to buy items on sale to stretch their dollar further (8.9%).
