The American Affluence Research Center recently did a survey on American consumers’ preference on gift cards. According to the survey result, 10% of the wealthiest U.S. households plan on spending up to $24 billion on gifts cards and similar “currency” as holiday gifts. The estimated sales include $5.6 billion in December holiday gift card purchases and rest comprised of cash and checks given as gifts.
The average holiday gift card purchases for each affluent households is estimated to be $470. Additionally, a third of the affluent say they would spend more if they were offered a $10 gift card for themselves for every $50 in gift cards they purchased. This implies that retailers could gain a larger market share if they offer more of bonus rewards. In order to boost retailers’ bottom line, bonus cards could be structured with restrictions, things like gift cards have to be used by the end of February, or that certain gift cards may only be used in certain merchandising stores.