With retail sales expected to rise modestly this holiday season, many experts are keeping a close eye on gift cards, wondering just how card weary consumers are.
Accenture recently predicted
that 56% of Americans would buy at least one gift card this season, down from 59% last year.
On one hand, this Christmas, experts say consumers want convenience, and cards certainly play to
that pragmatism. "They aren't the most creative gifts, but they're easy to buy and people like to get them," Sue Golden, SVP/Client services for MARS Advertising, tells Marketing Daily. "It's just
one more indication that this holiday, shoppers—who will be buying fewer gifts this year—are looking at everything through this lens of practicality."
On the other, "this is likely
to be a very promotional holiday, so if shoppers can get a great deal on a product, they may choose to give that over a gift card," Frank Badillo, VP/senior retail economist for Kantar Retail, tells
Marketing Daily. "That way, it can look as though they spent more than really did."