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Duff & Phelps' Robert Peters of the Unclaimed Property practice authored this white paper on gift card incentives this holiday season and highlights important issues for merchants to be mindful of when rolling out or revamping existing incentives programs.
Donald Trump, who was predicted to lose in virtually all the polls, came out on top of the electoral vote in a surprise victory. So, what are all Americans turning to either celebrate the victory or ease the pain? Why of course America’s favorite pastime. No, not football…shopping! And with the holiday season upon us, this year’s shopping spree is predicted to surpass all prior years. Holiday sales are expected to grow to over $650 billion or 3.7% this year, higher than the 10-year average of 2.5% and 7-year average of 3.4% growth.
Not surprisingly, gift card purchases are also expected to continue its historic growth pattern. In the aggregate, gift card sales are expected to exceed $100 billion this holiday season, an approximate 4% growth over 2015, while annual gift card sales will likely surpass $140 billion. Amazingly, nearly 2/3 of all consumers will purchase a gift card this holiday season, and if you are 25-34 years old, your chances of purchasing a gift card is 85%.