US holiday gift card sales to rise 25 pct--survey
NEW YORK, Sept 18 (Reuters) - Sales of gift cards in the United States are expected to jump 25 percent to $35 billion this holiday season as the cards become ubiquitous and shoppers turn to them as a quick and easy gift idea, according to a survey released on Tuesday.
The survey, conducted by Archstone Consulting, also found that roughly 56 percent of all holiday gift cards are redeemed within the first month of being purchased -- adding more significance to the January selling season.
January marks the end of the fiscal year for many retailers and has traditionally been used as a clearance month when retailers tried to empty stores of winter merchandise.
But the month has taken on greater importance in the past few years as gift cards rise in popularity and retailers count on shoppers coming back to their stores soon after the holidays to redeem their gift cards.
The survey also found that almost 50 percent of the respondents said they spend more than the value of the card when they redeem it, which can also mean added sales for retailers.
Archstone said gift cards are rising in popularity as retailers expand their efforts to sell the cards in new venues, such as drug stores or grocery stores.
Archstone conducted the survey from July 12 to July 18, and surveyed 1,000 web users.
(Reporting by Nicole Maestri)
((Editing by Andre Grenon; Reuters Messaging: nicole.maestri.reuters.com@reuters.net +1-646-223-6173)) Keywords: SURVEY GIFTCARDS/
(C) Reuters 2007. All rights reserved. Republication or redistribution ofReuters content, including by caching, framing or similar means, is expresslyprohibited without the prior written consent of Reuters. Reuters and the Reuterssphere logo are registered trademarks and trademarks of the Reuters group ofcompanies around the world.nN18442570
