A new study by GfK Roper Consulting predicts that gift cards will become the most popular gift this holiday, bumping clothing from the top spot. According to the research, 69 percent of American consumers plan to purchase gift cards as a gift this year.
One website, GiftCards.com, which offers consumers prepaid retailer and Visa gift cards, is looking to sell some 600,000 gift cards before the end of the year.
With the economic pressures people are experiencing, maybe they'd rather get a Visa gift card than a toaster," said Jason Wolfe, CEO of GiftCards.com and Omni Prepaid Group, told the Pittsburgh Tribune-Review."Instead of giving a big pile of gifts, people may give one gift and make sure it's really worth it," said Diane Crispell of GfK Roper Consulting.
Ms. Crispell and GfK are advising merchants to offer lower priced cards this year in light of consumers' plans to reduce holiday spending. "We know people are planning to spend less," she told the Tribune-Review.
Mr. Wolfe sees a day ahead when consumers won't need plastic and will have gift codes loaded onto a mobile device that can be redeemed using radio frequency technology in stores.
Discussion Questions: What challenges will a high number of gift cards sold this holiday season pose for retailers? What do you see as the future of gift cards?