Gift Card Facts and Estimates
Tony Craddock at giftexprepay always has new and interesting facts on the gift card market. In his latest update he once again provides a few statistics and trends in the gift card market.
More findings to share with in the weeks ahead.
What will be the impact on demand of open loop gift cards? Expenses/per diem cards? Remittance cards? And Foreign Exchange cards?
Will network branded gift cards fare better than retailer branded gift cards?
And where in the world do people think prepaid cards sold on third party malls and through the internet will do best?
G-T-P launches reloadable card for moviegoers
‘Bond. James Bond’ may have disappeared from the latest 007 movie but G-T-P, members of the Giftex Prepay Network, continue with their successful formula. They are partnering with U.K. movie theatre chain Empire Cinemas to offer the Film Card.
The reloadable prepaid card is available for purchase at all 17 Empire locations in and around London and can be used to purchase movie tickets online or in the theatre, either at the ticket counter or at self-serve kiosks. The card is reloadable at all those points as well and can be used to buy items at theatre concessions.
Helen Child, CEO of G-T-P explains that they have “provided a rapid route to market, allowing Empire Cinemas to capitalize on the pre-Christmas sales peak. “It’s a great time to launch because the high sales volumes will mean that the Empire Cinemas front-line staff really gets behind the card, which is essential in driving forward its success.”
Starbucks' new Gold Card part of holiday savings strategy
While many retailers will be aiming to ensure they get an adequate piece of the pie this Christmas, Starbucks seems to have already got their knife and fork in hand.
As we all know the mainstay of any business are the repeat purchasers, so in light of this Starbucks have come up with the ‘Gold Card’, a real back-to-basics card to make their core clientele feel extra-special.
This loyalty card costs $25 and entitles users to a 10% discount on most items (except gift cards and digital downloads), so regular users will start to see quick returns as long as they continue to fuel their caffeine habits.
This is a shrewd piece of sales from Starbucks as, when belts are being tightened, these sort of luxury purchases are often the first to be culled. The trick for Starbucks is to remain a premium brand but stay within reach of most consumers.
We eagerly await the results, but we would be surprised if this didn’t return some impressive figures.
National Retail Federation releases gift card data
The NRF 2008 Holiday Consumer Intentions and Actions Survey results have recently been reported.
According to the study, 54.9 percent of consumers would like to receive a gift card this holiday season and gift cards will be the most requested gift this year. The study results reported the main reasons that shoppers purchase gift cards are to allow the recipient to select their own gift (25.4%) and that they are easier and faster to buy than traditional gifts (12.6%). A reported 22.7% stated that they would be less likely to buy gift cards because they feel the cards are impersonal. The NRF also published several gift card shopping tips for consumers this holiday season.
Gift cards still tops, say Deloitte
For the fifth year in a row, gift cards are expected to lead holiday purchases this season, according to a survey released by Deloitte.
Of 13,276 consumers surveyed in late September and early October:
• 66 percent said they planned to buy gift cards over the holidays.
• Most shoppers are expecting to spend less per card than last year, cutting back to $28.43 from $36.18
• They will also buy fewer cards, averaging 5.3 cards compared to 5.5 last year.
• Fewer shoppers are also planning to buy gift cards for specific stores and products, though gas cards are becoming increasingly popular as consumers focus on value and necessities.
• Almost 50% of those surveyed admitted to having at least one unused gift card, with an average of 5.9 unused cards per respondent.
• 14% said they have too many cards and will probably never redeem them all
• 24% said they've had a card expire before they could use it
With the number of unused gift cards growing and with the shaky economic climate, we could well see a significant card in gift card redemption in January.
Posted by staff at November 10, 2008 10:54 AM