Gift Cards Change How Holiday Shoppers Shop, Shift Consumer Mindset, According to 2005 American Express Gift Card Survey

 

Shoppers Report Less Stress, Fewer Store Visits, and a New View of Gift Giving

 

Plan to Spend $339 on Gift Cards and $679 on Additional Gift Items

 

NEW YORK, Nov. 10 /PRNewswire/ -- Gift cards are changing both

gift-getting and giving, according to an American Express(R) Gift Card survey

released today. Virtually all those surveyed (92%) agree that gift cards have

altered how they shop

Gift card purchasers say that they expect to visit fewer stores (62%),

purchase less actual merchandise as gifts (60%), and shop more online (28%).

In addition, they plan to finish shopping faster and with less stress (74%).

Two-thirds of shoppers (66%) say gift cards have made them think

differently about gift giving -- that the gift is "what the receiver gets for

him or herself." Recipients shopping with their gift cards will shift retail

spending later in the cycle, extending the peak shopping season past

traditional year-end holidays and providing incremental sales opportunities to

retailers.

Notably, gift card purchasers suggest that these plastic cards could

impact the dynamics of the traditional crush of shoppers on Black Friday and

Thanksgiving weekend. Nearly two-thirds (63%) of gift card purchasers will

shop at malls or stores less often, including the Thanksgiving weekend. A

majority (52%) say they will get their holiday shopping done earlier because

gift cards are always available.

According to the survey, a majority (57% vs. 55% in 2004) plan to purchase

gift cards this year, spending on average $339 and rethinking gift giving in

the process. Survey respondents plan to spend an additional $679 on average

for other gift items this year.

Gift cards maintain a strong ranking as No. 4 on the list of items

consumers surveyed plan to give, just after the perennial favorites of

clothing (68%), toys and games (63%) and music in all forms (62%).

Gift card purchasers know the pitfalls of gift giving all too well.

Nearly half (49%) admit to returning or exchanging one or two gifts each year,

so it is understandable why gift cards are a popular choice for the pickiest

people on their gift list. More than half of shoppers (52%) plan to purchase

gift card because the recipient has particular taste and the gift giver would

prefer to offer a choice. Others plan to purchase a gift card for someone

they don't know well enough (11%), for someone who is never satisfied (8%), or

because the recipient asked for a gift card (8%).

"Gift cards have become a thoughtful purchase, and an intentional way of

giving the recipient the gift of whatever they want," said Valerie Soranno

Keating, President, American Express Global Travelers Cheques and Prepaid

Services Group. "The sought-after gift has come to be seen as providing a way

of allowing recipients to give themselves a special treat."

 

Experiential Gifts on the Rise

The growing popularity of gift cards parallels rising interest in giving

and getting experiences such as tickets to a sporting event, a class,

membership in a cultural institution, or travel. More people will be giving

experiential gifts this year (30% up from 23% last year), according to the

survey. Experiential gifts are particularly popular among younger consumers,

age 18 to 44, and in higher income households.

"Experiential gifts are part of a trend toward giving friends and

loved-ones a chance to create their own memorable experience," said Valerie

Soranno Keating. "Gifts cards have fueled the expansion of the category,

providing easier and more convenient ways to give valued experiences -- from a

day at the spa to a night on the town."

 

Gift Cards Become a "Cool" Gift

More than half of shoppers (57%) agreed that gift cards are a cool gift,

because recipients can choose what they most want, indicating that gift cards

are desirable gifts to give and receive. Gift cards have gained acceptance in

the mainstream with only 40% of consumers reporting that gift cards are "okay

for some, but not for others."

When comparing gift card features, shoppers want cards that let the

recipient get what they want where they want to get it (55%), simplify holiday

shopping (36%), don't expire (33%), provide a gift that is more appropriate

than giving cash (31%), are refundable if lost, easy to ship long distance, or

easy to buy at the last minute (each 29%).

When it comes to the gift card consumers want to receive, more than half

(55%) said they want a universal gift card that can be used anywhere rather

than a card that is accepted at a particular store (40%).

Eight in ten (79%) gift card purchasers would buy something for themselves

if they were the recipient of a gift card: 10% would use it for others,

either purchasing a present for someone else (8%) or re-gifting the card (2%).

Those surveyed said they are most likely to redeem cards for clothing (59%),

music/CDs (24%), consumer electronics (17%), books/magazines (13%),

hardware/tools (13%), perfume/cologne (11%), and house wares/appliances (11%),

and jewelry (10%).

 

Holiday Shopping Extends into January

The post-holiday season is extending into January with a new breed of

shoppers -- those ready to spend gift card money, joining those motivated by

mark downs and gift exchanges, who typify the post-holiday shopping

experience. Four in ten (40%) respondents who plan to purchase a gift card

said if they receive gift cards, they would redeem them within a month; eight

percent said within the post-holiday week.

And, the post-holiday season extends further into the new year as more

than one in four (28%) would redeem their gift card within six months, and 11%

within the year. More than half (59%) say they usually spend the value of the

card when redeemed; a third (34%) usually spend more than the value.

"Gift cards will help drive sales and store traffic long after the holiday

decorations have come down," said Valerie Soranno Keating. "Retailers that

don't prepare for this 'after-season' shopping may be leaving money on the

table."

 

Survey Methodology

The 2005 American Express Gift Card Survey sampled 593 consumers who plan

to give gift cards for gifts this holiday season. The survey was conducted

via telephone by International Communications Research (ICR) between October

14-18, 2005. The poll has a margin of error +/- 3.0%.

The American Express Gift Card can be redeemed at U.S. retailers and

restaurants that accept the American Express Card. It provides the experience

of getting the gift of choice and is an ideal solution for the upcoming

holiday season -- unlike store gift cards, instead of one place, the American

Express Gift Card is good all over the place and gives endless ways to make

everyone happy. The Gift Card is available in denominations ranging from $25

to $500 and is replaceable if lost or stolen for a fee. American Express Gift

Cards are available online at http://www.americanexpress.com/gift, by phone at

1-877-AXP-GIFT and through a number of banks, malls, supermarkets and

drugstores. For a complete list of participating locations visit

http://www.americanexpress.com/giftcard. Terms and conditions apply to gift

cards.

 

About American Express

American Express Company, founded in 1850, is a global travel, financial

and network services provider.

American Express is a leader in prepaid products. In addition to the

American Express Gift Card, the Company also offers the 114-year-old American

Express Travelers Cheque, the preeminent brand welcomed worldwide, as well as

Gift Cheques, the Travelers Cheque Card and the Be My Guest dining card, and a

range of corporate incentive prepaid products through American Express

Incentive Services.

 

 

SOURCE American Express
Web Site: http://www.americanexpress.com
http://www.americanexpress.com/gift
http://www.americanexpress.com/giftcard