Gift cards continue to be a growing and powerful consumer gifting method, especially for younger consumers, according to the latest research published by the UK Gift Card and Voucher Association (UKGCVA), compiled by GlobalData.
The research found that young consumers are driving the frequency of gift card purchasing, with 44 percent of Generation Z/Millennials (16-34 years old) admitting to buying a gift card at least once every two months, compared to 35 percent of Generation X (35-54 years old) and just 16 percent of Baby Boomers (aged over 55).
The ‘State of the Nation’ report, sponsored by First Data, a global leader in commerce-enabling technology and solutions, also noted that gift cards also drive consumers to spend more, as when they redeem shoppers spend on average 18.55 pounds more than the actual gift card value, equating to a 67 percent uplift on stated average load on a gift card purchase, which is 27.64 pounds.
While the majority of gift card shoppers (50.1 percent) are most likely to purchase gift cards from a retailer in a physical store, a growing proportion of shoppers cited online as their preferred purchasing channel, compared to when this research was last undertaken in 2017.
The rising influence of digital channels also influences the purchase of gift cards, with 58.6 percent of the 2,000 UK consumers who responded stating that the ability to redeem online is an influential factor, with 12.5 percent saying the same for availability of the gift card on mobile.
Gail Cohen, director general of the UKGCVA, said in a statement: “The 2019 research confirms the growing importance and relevance of the gift card as a consumer proposition across each generation of UK shoppers. However, with Generation Z and Millennials leading the way in terms of gift card purchasing frequency, it is now more essential than ever that the gift card industry evolves to meet the changing needs and desires of the modern consumer.”