A Christmas spent living under Covid-19 restrictions has sparked a significant shift in the public’s gifting habits according to data released by the Gift Card & Voucher Association (GCVA) working with GlobalData.
A survey of 2,000 members of the public revealed one in four Brits (25.2%) purchased gift cards for others in December. This is in comparison with 17.9% in November. Over a third of these (34.1%) also directly highlight lockdown restrictions as to their reason for doing so.
Targeted, single-store gift cards rather than multi-store alternatives were the gift of choice in December. 56.4% of gift card buyers purchased single-store cards in comparison with 32.4% for multi-store cards. This indicates a more thoughtful approach to gifting from the public.
In 2020, GCVA figures revealed digital gifting now represents 26% of all UK gift card spend. This rises to 50% accounting for all gift cards spent online. Christmas was the most popular gifting occasion in 2019, representing 41.7% of total gift card spend according to GCVA research. The suggested move to digital this past Christmas may be indicative of a more long-term shift in the public’s gifting habits.
Gift card sales see a significant rise as consumers buy for loved ones in lockdown
Gift cards swelled in popularity throughout 2020, as the UK sought to lift the spirits of loved ones in isolation. GCVA research found that gift cards were preferable to physical gifts in the first lockdown; making up 14% of total gifting spend in comparison with physical gifts at 12%.
The trade body, which represents more than 80 of the UK’s largest retailers, issuers and suppliers, is now urging the public to spend any gift cards from this Christmas; both treating themselves to a lockdown lift while providing a boost to the high street at a time when footfall plummeted by 46.1% year-on-year in December compared with the previous year, according to the British Retail Consortium.
Commenting is Gail Cohen, director general of the GCVA.
“It has been great to see shoppers overcoming lockdown challenges and supporting their favourite brands by opting for a gift card Christmas. Over the past year, the rise of digital gifting solutions, in particular, is driving a major change in how we send and receive gifts. Meaning they can be shared and enjoyed almost instantly; offering a safe way of gifting that still offers that truly personal touch.
“That said, physical gift cards having performed strongly too indicates the importance of retailers continuing to offer that tangible solution that consumers can still “unwrap” on the big day.
“If you did receive a gift card for Christmas this year, whether physical or digital, don’t just leave it in the bottom drawer and forget about it. It’s not a savings product, it is there for you to treat yourself. What better time could there be to give yourself a boost than now? Many gift cards can be spent online from the comfort of your home, so log on and start spending.”
Click here to visit the GCVA website.
