Aussie consumers plan to allocate nearly half (44 per cent) of their total gift spend on gift cards, up from 40 per cent last year.
Research from Blackhawk Network (BHN) shows that Australians plan to spend an average of $707 on gifts this holiday season including $311 on gift cards.
The shift marks a significant change in perception as gift cards are increasingly seen by consumers as a thoughtful and intuitive gifting choice.
“No one wants to give a bad present that sits unused in a cupboard, regifted or worse—uploaded to Facebook Marketplace,” says BHN senior director retail, Kieran Nolan.
“Gift cards have well and truly evolved from being a convenient option to a primary gifting strategy, which is well supported by the wide variety of gift cards available in the market.”
Gift cards are also topping Christmas wish lists with 84 per cent of people wanting to receive gift cards, up from 60 per cent last year.
Younger shoppers plan to purchase a total of 21 gift cards this holiday season (nine physical and 12 digital), while older generations plan to purchase 10 gift cards (six physical and four digital).
“As the holiday season approaches, retailers should be preparing for a surge in gift card demand by expanding their in-store and online offerings” adds Nolan.
“Shoppers are set to adopt a more strategic approach to their holiday spending as they balance rising living costs with value-driven gifting. Businesses should consider investing in their loyalty and incentive programs during the period to ensure they are engaging with customers and creating positive shopping experiences.
“In today’s fast-paced world, where trends come and go at lightning speed, gift cards offer a perfect solution, allowing recipients to stay current with their choices while reducing the stress of gift selection for givers.”
Image: iStock/Sadeugra
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