Following the busiest time of the year for gift card gifting, experts at the Gift Card and Voucher Association (GCVA) estimate UK adults spent as much as £122m from gift cards in January to combat seasonal blues and boost the economy.

Furthermore, gift cards can play a key role in supporting small businesses in January, with research showing gift card holders are keen to support their local high street. In the 2022 State of the Nation research, 28.8% of monthly gift card purchasers said supporting local businesses was a motivation for buying gift cards. Plus, 26.4% said they will continue to purchase gift cards as a means to support local companies.

Businesses can benefit from increased brand awareness and loyalty if customers are encouraged to spend their gift cards. Over half of those receiving a gift card in the past three years have been introduced to a new business via this format. This figure rises to 67.3% of Gen Z consumers. In addition, over half of those who are introduced to a new business become regular customers.

Commenting is Gail Cohen, director general of the GCVA

“GCVA data shows that 90.3% of customers will spend their gift cards within six months, with 98% typically spending them within a year. However, businesses should look to encourage consumers to spend as soon as possible. Gift cards are not a present for the top drawer and provide a valuable means to increase brand loyalty, introduce new customers to the business, and boost January revenue.

“With a large number of consumers receiving a gift card over the Christmas period, be it from friends and family, an employer or as a loyalty reward from a business, there is huge potential to increase post-Christmas sales. Customers can be encouraged to treat themselves, online or in-store, to an uplifting gift to combat the January Blues, whilst supporting businesses at the same time.”