Gift cards could make a resurgence this year as consumers shift their gaze from heavily discounted merchandize 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.


Meanwhile, gift cards have topped consumers’ wish lists for the fourth year in a row.

 

“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.”  

Not only will more people purchase gift cards this holiday season, but the average amount spent on each card will increase as well ($41.48 vs. $39.80 last year). According to the survey, 77.3 percent of shoppers will buy at least one gift card.


When it comes to which gift cards people will buy this holiday season, most shoppers say they will give their friends or family members a gift card to a department store (39.2%) or restaurant (33.4%), but others will consider book stores (23.7%), electronics stores (19.0%), entertainment venues like the movies (14.1%) and even coffee shops (13.9%).


At a time when spending on oneself has dwindled, nearly half of holiday shoppers surveyed (45.8%) say that they buy gift cards because it allows the recipient to select their own gift, and an additional 17.8 percent say convenience plays a role, as gift cards are easier and faster to buy.


While some shoppers love buying gift cards, others prefer to stick to traditional gifts. Those who hesitate to buy gift cards cite that the main reason is because the gift seems impersonal (24.1%). Additionally, despite new gift card regulations, some (18.9%) are concerned the card will expire or have added fees. Other reasons some people are less inclined to buy gift cards include their desire to buy items on sale to stretch their dollar further (8.9%), concern the recipient will lose it (5.9%), fear the retailer will go out of business (3.2%) and not knowing which company the recipient would want a card from (9.5%).