Welcome to December – the month when gift card sales go through the roof! You really shouldn’t need any explanation as to why gift cards are so popular this month. With so many Canadians celebrating a variety of end-of-year holidays such as Christmas and Hanukkah, the spirit of gift-giving is very much alive. Hopefully, it comes as no surprise to you that gift cards are always very popular gifts to both buy and receive.
Why are gift cards popular with shoppers? Is there any other item out there that is easier to buy? Gift cards ensure that the recipient gets whatever he/she wants. So, to a shopper, the feeling of “I can’t go wrong” is very prevalent when making a gift card purchase. He/she needs not worry about size, style, colour or any other specific aspect of a product being purchased. The gift card recipient can worry about that him/herself.
According to GiftCardGranny.com, gift card sales are only getting more and more popular with each passing year. The gift card industry, as a whole, is expected to reach about $160 billion in sales by 2018. And it would appear as if this number will continue to rise. The site goes on to list a number of recent statistics that suggest that all retailers should be selling gift cards.
As of 2015, nearly 93% of American consumers surveyed have either given or sent a gift card. So, evidently, just about everyone buys or receives gift cards. It can be argued that once a merchant decides that he/she will sell gift cards in his/her store, they will become the most popular products available!
65% of gift card holders spend an extra 38% beyond the value of the card. When a business owner decides that it’s time to sell gift cards, he/she automatically begins to earn more money. At Canadian POS Corporation, we’ve seen this to be true for many years. Not only do sales increase, thanks to the addition of the new items, but gift card recipients regularly end up spending more than the value of their cards.
It should also not be lost on business owners that not all recipients redeem their gift cards. While this may be a reason for shoppers not to buy them, it’s certainly not a reason for merchants not to sell them. In many cases, gift card sales generate huge profits thanks to the fact that no actual merchandise leaves the store when gift cards are sold. When they’re not redeemed, it’s like earning money for nothing. According to GiftCardGranny.com, “$1 billion gift cards went unused in 2013 compared to $750 million in 2014.”
What are the most popular gift cards? The site lists restaurants as the most popular, followed by department stores, coffee shops and entertainment (movies and music). It also notes that digital gift card sales are on the incline with projected sales of $15 billion by 2017. “56% of surveyed consumers would like to keep gift cards stored on their phone,” says GiftCardGranny.com, “This makes the card easily accessible and decreases the chances of it being lost.”
Are you ready to take advantage of the popularity of gift cards this holiday season? For more information about how you can begin selling gift cards in your store, call Canadian POS Corporation at 1-877-748-2884 or email us at info@localhost.