Physical stores big winner with gift cards

When it comes to redeeming their holiday gift cards, consumers overwhelming prefer brick-and-mortar stores.



According to a survey by the International Council of Shopping Centers, 77% of consumers who received gift cards planned to redeem them in a physical store.



The survey, which provides insight into gift card usage from the 2015 holiday season, found that the most popular type of gift card was for full-service restaurants (29%), beating out cards for discount stores (26%), general Visa/ MasterCard/American Express (21%), coffee/fast food (19%), online only (18%), traditional department stores (14%), and electronics (10%).



In other findings, two-thirds (66%) of all American adults received gift cards during the holiday season, averaging $85.10 per person. For those who received at least one gift card, the average amount was $128.20.



Of all age groups, Millennials are the most likely to purchase additional items when redeeming gift cards (64%). This includes spending on additional items in the same store where they redeem their gift card or pick up an online purchase in store, and even making purchases at stores they did not have gift cards to redeem.



Additionally, 31% of Millennials quickly redeemed their gift cards, doing so by January 2016 compared to only 23% of Baby Boomers. While all age groups received a gift card – Millennials come out on top, with 78% receiving at least one, compared to 65% of Gen-Xers and 59% of Baby Boomers.