WASHINGTON, Jan. 13 (UPI) -- Quick redemption of holiday gift cards are boosting holiday sales figures, according to a recently released survey.
Nearly 60 percent of holiday gift recipients polled said they received gift cards or gift certificates, and 50 percent of them had already redeemed their cards by Jan. 5, according to a survey by accounting and consulting firm Deloitte. Roughly 3,600 recipients were polled.
"For retailers, the January shopping spree has to be the best present of all," said Tara Weiner, national managing partner of Deloitte's consumer business practice.
Gift cards proved particularly profitable for retailers. Most cards were redeemed for the entire value of the card, and about one in five spent more -- in fact, almost twice as much as the average value of the gift cards, survey results indicated.
"Consumers were out there shopping with their gift cards in hand the morning the stores opened on Dec. 26. By early January, they already had made a significant dent in redeeming their cards," Weiner said.
In 2003, more than one in 10 consumers indulged by buying themselves gift cards, the survey showed. Lingerie legend Victoria's Secret is cashing in on this aspect of the gift card craze with Escapes, a travel, shopping and entertainment service. Members can buy themselves (or others) gift cards for getaways from a movie and dinner to a day at the spa.
One reason gift cards are such a hit may be that it's easier than ever to get them. Gone are the days of standing in line at the customer service counter -- at a Safeway store in Northern Virginia, gift-givers can pick up cards from name-brand stores such as Nordstrom, Home Depot, and The Children's Place along with their frozen peas.
For the ultimate convenience, gift givers can e-mail their cards. Giftcertificates.com offers e-mailed certificates from retailers including Eddie Bauer, Red Envelope, The Sharper Image and LL Bean. Or, purchasers can simply send a "Supercertificate" redeemable at hundreds of stores. Shoppers can also order gift cards and send them by regular mail -- including overnight for the time-pressed.
On average, consumers received $106 in gift cards, the survey said. But for those with bigger budgets, Giftcertificates.com even offers cards from Barneys of New York and Carnival Cruise Lines.
Those with as-yet-unused gift cards and partial gift card balances plan to cash them in by the end of the month, adding even more to post-holiday sales, the report said.
Of everyone polled that didn't receive gift cards, one-quarter had returned or will be returning their gifts, and almost one-third said that they would have rather received a gift card. Younger people were most likely to return gifts and most likely to prefer gift cards, survey results indicated.
"So what's the moral of this holiday season? A gift card is a perfect gift," Weiner said.
The gift card will retain its popularity in 2004, the survey indicated. Older people and wealthier people are most likely to spend the most on gift cards this year. Those 45 to 55 years old planned to spend about $160, and those 55-64 intended to spend around $190. Higher income households -- those that make $100,000 or more -- planned to spend about $220 in 2004, results indicated.
The survey was conducted between Jan. 4 and Jan. 5, and included all gift cards and gift certificates except prepaid phone cards.
