Well beyond fruitcake, eggnog and Christmas cookies, food is apparently becoming an increasingly popular item for holiday-gift giving.
At the higher end, the trend marks a return to splurging as the economy shows some recovery, according to an article in the Los Angeles Times. Customers at Whole Foods and Bristol Farms were said to be heavily buying sweets, bottles of wine and baskets stuffed with seasonal snacks over the last few weeks. Both Omaha Steaks as well as Hickory Farms, the maker of popular meat and cheese party packages, had strong holiday seasons.
At the lower end, the trend was said to be in line with the new "frugality" being adopted by many Americans as consumers seek out for more "practical" gifts, or at least ones that will definitely be used. At the same time, food was seen as the ideal gift for those still battling hardship amid high-unemployment rates.
"Customers are telling us that food, particularly some of the specialty items, eat up a lot of the family budget," said president Chris Sherrell. "We're hearing a lot of people ask, 'What do they need? What's practical?' They know food isn't going to go to waste."
But the rising popularity of gift cards was seen as making food much easier to give as a present. With a wide variety of staples as well as more extravagant items, supermarkets also provide a diverse selection of options for gift card recipients. Gift card sales are up at Whole Foods and Bristol Farms and these types provide the traditional "splurge" opportunity for the recipient. But gift card popularity is also up at many traditional grocers and were seen as a more thoughtful present for someone going through difficult times.
With a retailer like Trader Joe's, it seems to work both ways.
Karen Hoxmeier told the L.A. Times that she bought her brother a cashmere scarf and several accessories for his digital camera last year. But with her brother out of work and cancelling his phone service, cable and trips to his favorite retailer, she bought him a gift card this year at Trader Joe's.
"He's getting thin," said Ms. Hoxmeier. "He can use food."
Discussion Questions: What is driving the apparent increase in food as a holiday gift item? To what degree is the popularity of gift cards feeding this demand? What else could food retailers do to capitalize on this opportunity?