How popular are gift cards with consumers?

By 2009/04/21Gift Cards

How popular are gift cards with consumers? They’re such a hit that two-thirds of consumers receive gift cards, driving a growing market that soared to $100 billion in 2007. With so many customers using the cards these days, it’s no wonder why more retailers have turned to custom gift cards as a popular way to attract customers. The cards are great for gift giving and every day use.

Gift cards are a growing business that’s getting larger every year. More than two-thirds of customers use the cards, fueling a market that grew to $100 billion in 2007. With thousands of retailers, from specialty stores to restaurants, offering custom gift cards, the segment is growing well beyond holiday use. Consumers are increasingly using the cards as incentives, special gifts and rewards every day of the year.

Over the past 5 years Plastic Gift Cards have burst into the retail scene. By 2006, 82% of retailers were using the Plastic Gift Cards. Just 3 years earlier only about one-third of retailers offered these cards.

You would be hard pressed now to find a retailer that does not offer them. You can’t put a Happy Meal, a latte or a tank of gas under the Christmas tree but you sure can wrap up a nice plastic gift card! You choose the denomination and the scene on the card.

Gift cards are among the main holiday and special occasion purchases each year. The reason: convenience. They’re easy to purchase and they’re easy to redeem.

You see and may even have several Gift card Cards in you pocket. Stemming from private clubs, health care providers, discount shopping clubs, police associations, civic groups these cards identify you and serve as mini-billboards for the association, club or business. Many times these cards carry a photo of you thus protecting your membership from fraudulent use.