Study estimates 25 percent increase in holiday gift card sales year-on-year
STAMFORD, Conn. Gift card purchases are expected to hit a record high of $35 billion during the 2007 holiday season as more retailers make them readily available to customers.
A study from Archstone Consulting forecasts a 25% increase over the $27.8 billion that consumers spent on gift cards during the holidays in 2006. The study also showed that consumers are quick to use their cards, with 56% using them within the first month of receiving them and 85% redeeming the cards within three months. And the study showed that close to 50% of gift card users spent more than the value of the card.