UK RETAILERS TO RECEIVE RECORD POST-XMAS BONUS FROM GIFT CARD SALES
£3BN OF GIFT CARDS TO BE GIVEN AS XMAS PRESENTS THIS YEAR
Retailers worried about their prospects in 2017 are to receive a welcome post-Christmas bonus thanks to a record year for sales of gift cards and vouchers.
The Prepaid International Forum (PIF), the not-for-profit trade body representing the prepaid financial services sector, predicts that UK present buyers will give friends, colleagues and loved ones an estimated £3bn of gift cards for them to treat themselves this Christmas
This is expected to convert into an extra £4.2bn being spent in stores in early 2017, with the average shopper topping up their gift by an average of 40%.
The high level of sales is being attributed to a number of factors. Firstly, more cards and vouchers are able to be spent online, making them a more appealing gift for people looking to choose their present through online stores.
Secondly, growth has been accelerated by an increased trend for busy shoppers to leave their gift buying later this year, making gift cards a useful addition for time-poor shoppers looking to complete their Christmas lists.
Alastair Graham, spokesperson for PIF, says:
“So far 2016 has been a record year for sales of prepaid gift cards, topping the previous record set over the equivalent period from 2015. Early indications are that this will be boosted by another strong Christmas, with shoppers using prepaid cards especially, as a safe and reliable way to give loved ones a special treat.
“Innovations such as the increased access to online stores are proving popular, as are multi-store gift cards that allow recipients to shop around for their treat across a wide range of all major UK retailers.
Retailers in fashion, beauty products and electrical items are expected to be the major beneficiaries of a post-Christmas boost from people spending their gift cards.
UK managing director at One4all, the Post Office multi-store gift card, Declan Byrne, comments:
“These figures are especially good news for retailers because they stimulate extra sales and bring new customers into stores, especially in the period after Christmas which can otherwise be a little flat.
“We know from our research that for every £1 spent from a gift card, a customer will typically add an extra 40 pence of their own money to top-up to a something that’s a really special item. And typically, when customers use them to buy electrical goods – such as the latest must have gadget, laptop or smart TV – stores tend to see a top-up spend of 100% of the gift card’s value.
“As much as 50% of people receiving gift cards will be setting their sights on fashion, making this especially good news for this sector.”
