Consumers Turning To Gift Cards For Holiday Shopping


Consumers are spending more on gift cards this holiday season as the go-to holiday gift amidst supply chain woes, inflation, and lingering effects of COVID-19, says a report from InMarket. The report says that shoppers are spending more on gift cards earlier than last year and preparing for the effects of the supply chain crunch emptying shelves during the peak holiday season. Shoppers are increasing how often they shop much earlier than last year and eCommerce gift cards are surging in popularity. This year, eCommerce gift cards account for 29.8 per cent of gift cards purchased, up from 19.6 per cent this time last year. Interestingly, in the U.S. home improvement sector, Lowe’s has 2.4 per cent of the category market of all gift cards purchases and an average spend of $77.84 per shopper. Home Depot comprises one per cent of the category market with an average spend of $39.96 per shopper. The report says consumers are moving to a ‘buy now and shop later’ mindset and turning to gift cards as they weather a season filled with delays and frustration. Retailers should prepare for an extended omnichannel holiday season and look to provide value and options to shoppers as they look for ways to solve this season's challenges.