By T.J. Reid, Editor of Fashion Advantage
There are some good statistics still out there about this season:
Forty-four percent of our shoppers say they buy for 10 or more people. Sixteen percent for seven to nine people, 29 percent for four to six and only 11 percent have one to three on their shopping list. Hope that 44 percent is just beginning and they are all finding their way to your store!
Thirty-two percent of our shoppers are paying cash, as opposed to 46 percent of cash customers in 2010.
And here’s a figure for you:
Total Gift Card Spending to Reach Estimated $25 Billion. According to NRF’s 2010 Gift Card Consumer survey, conducted by BIGresearch, Americans will spend an average of $145.61 on gift cards, up from $139.91 last year. Total gift card spending is expected to reach $24.78 billion.* NRF’s first holiday survey, released last month, found that gift cards remain the most requested holiday gift, marking the fourth year in a row gift cards have topped consumers’ wish lists.
Because three out of five people will receive gift cards, the total per person is $156.00.
I also find it interesting that survey said only 30 percent would spend the card within 30 days, so this is the gift that keeps on giving. And amazing $1.8 BILLION go unused!
Yes, the average person will not spend $15 of their gift card money; either because they lost it or forgot it before time ran out. Because they haven’t actually spent their own money to buy it, it lacks the importance of actual cash in the pocket. But 80 percent of those who do use their cards, spent more than the card amount. Again because it was not their money in the first place, so they feel free to add to.
The bottom line here: SELL GIFT CARDS!
T.J. Reid is editor of Fashion Advantage magazine, and author of several books on successful retailing. She presents “M & M’s – Marketing & Merchandising to Create a ‘Sweet’ Profit” with lessons on enticing the customer through display, advertising, social media and word of mouth, and creating engaging events and invites with a special emphasis on the Valentine’s Day sales period on Saturday, February 1 at 10 a.m. at the January Atlanta Apparel Market.