At Canadian POS Corporation, we’ve long heralded the benefits of selling gift cards…and with good reason! We’re just coming off of the busiest shopping season of the year. And you better believe that gift cards were in high demand. Now that the holidays are over, the benefits of selling gift cards are going to be revealed to all merchants who sold them during the holiday shopping season. January, you see, is a big month for gift card redemption.
Being the month right after the holidays, January is notorious for being a high gift card redemption month. It’s a great time for retailers as they’re able to welcome many new customers into their stores. The smartest business owners take advantage of this fact and continue to promote special discounts, sales and events that will entice those new shoppers to keep coming back well after their gift cards have been redeemed.
Securing new loyal customers is one of the biggest benefits of selling gift cards.
Studies show that this benefit is enjoyed by Canadian retailers in growing numbers. BusinessInsider.com reveals that the recently-conducted second annual FedEx Holiday Recommerce Survey found that more than half of Canadian shoppers planned on giving gift cards to loved ones during the holidays. The survey of 1,569 Canadians also discovered some customer intentions for January.
“Three quarters of Canadians who plan to shop after the holidays (77%) say they do so to take advantage of bargains,” informs the website of the survey’s results, “Almost a third (28%) indicated they do so in order to buy that one gift they never received during the holidays. Canadians between the ages of 18-34 are more likely to shop after the holidays (59%). Most Canadians (71%) who give gift cards do it so the recipient can choose what they want.”
These findings reveal quite a lot about the average Canadian shopper.
Firstly, they demonstrate that once the holiday season is over, the need to shop doesn’t cease. Secondly, they show that there’s no bad time of year to offer customers discounts. And, finally, the findings reveal that gift cards continue to be incredibly popular choices for gifts. All in all, the survey proves that selling gift cards is a worthwhile undertaking for all Canadian merchants.
Lisa Lisson is the president of FedEx Express Canada. “After weeks of thinking of and buying for others, the recommerce season is that time of the year where Canadians should feel free to reward themselves,” she is quoted as saying, “Gift cards put Canadian businesses into prime position to keep the registers ringing into the New Year when bargain hunters look to find those items still on their holiday wish lists.”
High online shopping numbers expected to continue in January.
As explained in our last blog, online shopping continues to grow in popularity in Canada. Especially with the advent of new technologies that make buying products via the internet easier than ever, we’re currently in a time when investing in e-commerce shouldn’t even be considered an option for business owners.
“Canadians embraced online shopping this holiday season because it allowed them to find the perfect gift with ease and convenience during a busy time of year,” says Lisson, “For Canadians waiting to cash in their gift cards, we believe they will find that shopping online for themselves is a well-deserved reward after the holidays.”