After over a year of social distancing measures, new research suggests the enforced shift to digital gifting caused by Covid-19 is here to stay, with gifting through online channels skyrocketing over the past year.

The State of the Nation 2021 research, which surveyed 2,000 UK shoppers to determine evolving buying habits and attitudes towards gift cards, found over a third (38.4%) of shoppers have pivoted to digital gift cards completely since the onset of the pandemic.

The research carried out by the Gift Card & Voucher Association (GCVA) also shows nearly half (47.1%) of shoppers now normally spend their gift cards online as opposed to in-store. A further 21.6% of shoppers are spending their gift cards on mobile devices; nearly double the proportion that did so in 2019 (11.4%).

While digital gift cards were growing steadily before lockdown, the enforced shift caused by Covid-19 looks to have accelerated this growth by several years. One in three shoppers (32%) have either purchased a gift card online for the first time. Or, with greater frequency than previously, since the beginning of the pandemic.

However, physical gift cards retain the largest market share.

Physical gift cards have seen particular growth over recent months as high street businesses reopened their doors to the public. Gift card purchasing from physical stores regained significant momentum from March onwards.

Furthermore, 47.1% of respondents now expect flexibility in terms of where and how they spend their gift cards. This indicates an omnichannel redemption offering is integral to an effective gift card strategy.

Commenting is Gail Cohen, director general of the GCVA.

“It is wonderful to see the gift card industry thriving across so many different channels; offering the public unparalleled choice in how, when, and where they can purchase their gift cards. More than ever, shoppers across different demographics have varying needs and preferences. Retailers and other high street businesses would subsequently do well to meet this need; offering their customers the flexibility they desire.

“As we move forwards, choice of channel and an omnichannel offering will be crucial to retailers meeting evolving customer needs. For example, we are increasingly seeing the rise of more environmentally-friendly physical gifting options, such as recyclable gift cards. This means shoppers can pick the gifting option they prefer – whether this be digital or physical – while remaining environmentally-friendly.”

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