• by Jack Loechner , Staff Writer @mp_research, October 10, 2008

According to Archstone Consulting, results of its 2008 Holiday Gift Card Survey predict that, in reaction to the faltering economy, consumers will spend less on gift cards in Holiday 2008 and will also shift their gift card spending towards household necessities such as groceries, and gas, or small indulgences such as dining at restaurants.

Dave Sievers, Principal and the Consumer Products and Retail Practice lead at Archstone Consulting, says "Archstone Consulting expects gift card sales to dip 5% to 25 billion in Holiday 2008... while... only 24% of consumers plan to increase their spending on gift cards in 2008, potential retail bankruptcies and the potential loss of card value are not factor.

Other Key Findings:

• Pre-paid bank cards (Visa, American Express, Master Card, etc.) will continue to be the most desired by gift recipients this year, as they were in 2007
• "Consumers are gravitating toward cards that allow them the flexibility to purchase household needs at the gas station, supermarket, or pharmacy," commented Sievers.
• Approximately 50% of respondents said they would consider purchasing a gift card from a retailer if it comes with a coupon/discount for the purchaser or the recipient
• The restaurant/fast food category will sell more cards than any other category this holiday season
• "For many families, eating a meal out is a simple luxury and, therefore, an ideal gift in a holiday season that will otherwise be noted for pragmatic purchases," said Sievers.
• Teenage and post-college consumers will represent the bulk of the increase in gift card purchases
• "The 13-24 year-old group has the least discretionary income, yet on a relative basis, they spend more on gift cards than any other demographic, and also receive almost 40% of all gift cards," said Michael Unger, a Principal in Archstone Consulting's Consumer Products and Retail Practice
• Sales of gift cards through outside locations, such as grocery, drug stores, banks and kiosks are expected to grow significantly, by 30% versus 2007.
• "As the gift card category has matured, retailers have capitalized on its popularity by making the cards available outside of their four-walls," commented Unger

Average Projected Spend On Gift Cards ($ by Age and Gender)
	Age Group
	13-17	18-24	25-29	30-34	35-39	40-44	45-49	50-54	55-65	65+
Male	$ 99	176	119	122	92	110	116	84	73	57
Female	$ 77	88	95	95	134	136	117	130	121	84
Source: ArchstoneConsulting, September 2008

For more detailed information and analysis relating to Archstone Consulting's 2008 Holiday Gift Card Survey findings, please go here.