Will bargains drive down gift-card sales?
Gift cards are once again the most-requested holiday present, but sales of holiday gift cards are expected to fall 5.3% to $24.9 billion this year, the National Retail Federation said today.
The trade group also said that fewer people plan to purchase gift cards (53.5% this year compared with 56.6% last year) and will spend less money on them ($147.33 this year compared with $156.24 last year).
So what's going on?
With the economy continuing to falter, cash-strapped shoppers are taking advantage of the hefty discounts that many retailers -- from luxury chains to discounters -- are offering on merchandise.
"Since gift cards never go on sale, some price-conscious shoppers will be passing up gift cards in favor of holiday bargains," said Tracy Mullin, chief executive of the National Retail Federation. In other words, instead of that $25 JCPenney gift card that Aunt Nancy was going to get you, she's buying you the sweater that's on sale for $15.
Just for fun, here's a look back at some NRF figures from last year's holiday season:
25 million: Number of people who had completely finished their holiday shopping 10 days before Christmas.
35 million: Number of people who had not begun their holiday shopping 10 days before Christmas.
$41.95: Average amount of each gift card purchased. Department store gift cards were the most popular, followed by restaurants.
37%: Amount of gift card values that had been spent two weeks after Christmas.
$923.37: Average amount spent on the holidays.
$469.14: Average amount spent on family members.
$90.13: Average amount spent on friends.
-- Andrea Chang
Photo: A shopper checks out gift cards at the Best Buy store in West Hollywood. Credit: Robert Lachman / Los Angeles Times
