As retailers consider how to build on the digital momentum in 2020, a new holiday spending report shows a more than 80% increase in digital gift card (eGift) sales and a nearly 40% increase in overall eCommerce gift card sales during the holiday season.
Read More : KnowBe4’s Global Cybersecurity Experts Make Predictions For 2021 Cyber Trends
The Blackhawk Network BrandedPay™Post-Holiday spending report based on consumer research and Blackhawk’s own U.S. sales data found consumer spending exceeded holiday projections from the organization’s earlier BrandedPay™ Holiday Shopping Preview2 for both eCommerce and digital gifting, a trend that is poised to continue. The report’s findings come as gift cards look to provide a needed boost for retailers to kick off the new year.
The top findings and trends identified in the report include:
eCommerce and digital gift card sales surged
Consumers surveyed reported doing 68% of their holiday shopping online on average, which is even higher than the anticipated 60% surveyed consumers reported before the holiday season. Following that trend, eCommerce gift card sales growth beat pre-holiday projections and more than doubled the 12% growth seen in 2019. eCommerce gift card sales ahead of the 2020 holiday season were trending at a 21% increase over 2019 and jumped to nearly 40% growth during the holiday season.
- Holiday eGift sales continued enormous year-long growth. Sales data from Blackhawk Network shows eGifts sales were up over 80% as compared to 2019, surpassing the 74% growth sales were hovering at before the holiday season.
A boost in holiday digital payments adoption looks here to stay
A whopping 41% of consumers surveyed said the payment methods they used to purchase gifts in 2020 were different from those they’ve used in previous years. Nearly 1-in-4 shoppers surveyed reported shopping using a mobile wallet for the first time during the 2020 holiday season, and it looks like usage will stick. Of those surveyed, 37% report that they are likely to permanently adopt the new payment methods they used to shop this year.
Holiday gift cards could provide a boost for retailers in first quarter of 2021
Half of surveyed consumers report they plan to use their gift cards within a month after the holiday, another 23% say they will use their gift cards in the next 3–6 months, and the average denomination for gift cards purchased this holiday season was about $45. This is good news for U.S. retailers as 6-in-10 surveyed shoppers also report that they plan to spend more than the value of their gift card.
Read More : How The Covid-19 Pandemic Accelerated Enterprise Investment in NLP
