Gift cards to dominate holiday budgets
Gift cards continue to rise in popularity as a holiday gift option.
Consumers plan to allocate 48% of their total holiday budget to gift cards this year, up from from 39% in 2023, according to the annual holiday forecast from global branded payments provider Blackhawk Network. This shift is even more pronounced among Gen Z and millennial shoppers, who intend to spend over half (54%) of their holiday budgets on gift cards, up from 41% last year.
Younger generations report planning to purchase 25% more gift cards this year than older generations. Younger surveyed shoppers plan to purchase a total of 19 gift cards this holiday season (12 physical and seven digital), while older generations plan to purchase 15 gift cards (nine physical and six digital).
The study also found that savvy consumers plan to tap AI for shopping help and will look to leverage loyalty programs and stored value to power their holiday spending this year.
Other key findings from the research include:
•Surveyed consumers plan to spend $760 on holiday gifting overall this year, which is relatively flat over 2023.
•Loyalty programs are powering holiday spending. Forty-five percent of surveyed consumers said they plan to change their shopping behaviors, with a key focus on value and deals this holiday. Of the surveyed Gen Z and millennial consumers, 43% plan to pay for holiday gifts with store or credit card points and 26% plan to purchase gifts using loyalty points (i.e., hotel, airline, etc.).
“Our research found that a growing number of people will be leaning on gift cards, actively looking for rewards and leveraging the points and stored value they’ve accumulated in loyalty and reward programs to fuel their holiday shopping,” said Jay Jaffin, chief marketing officer, BHN. “Also new this year: while consumers look both online and in-store for the best buying options, about one in five surveyed shoppers said they plan to use AI to help with everything from finding the best deals, to comparing products and getting gift ideas.”
