FINDLAY, Ohio – A national survey released today suggests consumers are waiting longer to redeem gift cards received during the holiday season. The survey was conducted by Corporate Research International (CRI), a leader in tracking national trends, issues and quality service. CRI received 1,188 completed surveys from its nationwide pool of auditors. The survey, conducted from Dec. 31, 2007 to Jan. 7, 2008 asked people how many gift cards they gave as holiday gifts, where those gift cards were purchased, how many they received and how they plan to redeem them. According to the survey, more than 55 percent of those surveyed received at least one gift card this holiday season. Of those, more than half of respondents (58 percent) say they plan to redeem their gift cards by the end of January. However, the survey reveals a history of consumers waiting as long as a year or more to redeem their gift cards. Respondents were asked about gift cards they received during last year’s (2006) holiday season. Of those, less than 13 percent actually redeemed their gift cards within the first month. Fifty-seven percent redeemed gift cards throughout the year, with a jump in percentage (10 percent) in December, a full year later. More than 32 percent said they received gift cards that have yet to be redeemed. “Retailers are following these gift card redemption trends very closely and it’s changing the way they do business,” said Mike Mallett, CEO of Corporate Research International. “Most retailers don’t count gift cards as a sale until they are redeemed. Consumers can expect to see retailers offering greater incentives for cashing in gift cards earlier,” Mallett said. More than 53 percent of respondents said when they do redeem their gift card(s), they plan to spend more than the amount on the card. Ninety-five percent of respondents say they plan to redeem their gift cards at a store location in their area, compared to 10 percent of those who said they would redeem their gift cards online. Sixty-four percent of respondents said they gave at least one redeemable gift card this holiday season, while on average each person gave about four gift cards. Of the nearly 800 people who said they gave gift cards, 38 percent said they purchased a gift card from a third party retailer. That compares to just 17 percent of respondents who said they purchased a gift card online. The most popular third party retailer for gift card purchases was grocery stores (51 percent). An additional 35 percent of respondents said they purchased gift cards from another third party resource but did not specify the location. The survey shows that more than half of respondents (58 percent) spent up to $100 on gift card purchases this holiday season. Nearly four percent said they spent $500 or more. |
