Gift card sales booming for the holidays

A survey by the National Retail Federation and Prosper Insights & Analytics shows holiday shoppers are expected to spend a total of $27.5 billion on gift cards. That’s an opportunity for your credit union to encourage members to purchase cards and give a boost to your CU’s bottom line. Consumers plan to purchase three or […]

A survey by the National Retail Federation and Prosper Insights & Analytics shows holiday shoppers are expected to spend a total of $27.5 billion on gift cards. That’s an opportunity for your credit union to encourage members to purchase cards and give a boost to your CU’s bottom line.

Consumers plan to purchase three or four gift cards on average at an average $47 per card for a total of $27.5 billion. The top reasons for giving a gift card are that it allows the recipient to choose their own gift (46%) and is easier and faster than choosing a traditional gift (29%). Restaurant cards are the most popular, chosen by 35%, followed by those for department stores (30%), coffee shops (23%), Visa/Mastercard/American Express/Discover (also 23%) and entertainment such as movies or music (18%).

The survey found 56% of consumers asked during the first week of November had already begun their holiday shopping, about the same as the past few years. That was up from 48% who had already started at the same point a decade ago. On average, consumers had completed 24% of their shopping, the highest level in the history of the survey and up from 16% in 2009. Only 4% had finished shopping.

NRF defines the holiday season as Nov. 1 through Dec. 31 and has forecast that sales will total between $727.9 and $730.7 billion. Consumers expect to spend an average $1,047.83 – including purchases made earlier – for an increase of 4% over last year, according to NRF’s annual survey released in October.

Credit cards remain the top form of payment at 42%, followed by debit cards (37%) and cash (19%). Forty-four percent of holiday shoppers plan to use alternative payment systems, with 32% saying they will use PayPal, 10 percent Apple Pay, 7% Google Pay, and 5% each Samsung Pay and Venmo.

LEVERAGE offers gift card solutions for your credit union. Learn more here.

Written by
admin
View all articles

About Us

The League of Southeastern Credit Unions & Affiliates represents 302 credit unions in Alabama, Florida and Georgia, with a combined total of $175 billion in assets and more than 11.6 million members. LSCU & Affiliates provides legislative and regulatory advocacy; education and training; cooperative initiatives (including financial education outreach); public messaging; information services; and business solutions.

LSCU Mission Statement

To create an environment that enables credit unions to grow and succeed.

LSCU Vision Statement

To be the trusted advocate and preferred source of information for credit unions.

If you need to reach us, e-mail communications@lscu.coop

Social Channels

Follow us on all major social media platforms.