UK retailers are set to receive a gift card sales boost over the last weekend of January that could potentially total over £200m.
Around 44% of Brits received a gift card this Christmas according to the UK Gift Card & Voucher Association.
And over half of consumers (50.3%) will spend their gift cards within a month of receiving them.
Millions of shoppers are statistically likely to use their Christmas gift cards over the last weekend of January.
Accordingly, retailers can expect a gift card sales boost with over half of Christmas gift cards spent by 26 January.
Moreover, according to UKGCVA research shoppers will often spend more than the original value of the card.
The average extra spend is £18.55 – a 67.1% increase on the average value of shoppers’ gift cards (£27.64).
And so retailers could receive a gift card sales boost of more than £245m through upsold goods and in-store uplift.
Gift card sales boost: National Use Your Gift Card weekend
The weekend of 25/26 January coincides with the first-ever National Use Your Gift Card weekend.
Launched this year by the UKGCVA it aims to encourage consumers to make the most of their unspent gift cards.
The weekend also aims to entice consumers back to the high street amidst a turbulent period for the retail sector. This was most recently highlighted by sales figures from the Office of National Statistics (ONS).
Its data revealed that sales volumes slipped for the fifth consecutive month in December.
Gift cards, when redeemed, are a vital customer loyalty and engagement platform, which is welcome news to retailers. This is particularly true among younger demographics.
Gail Cohen, director general, UKGCVA, says: “We would always encourage consumers to “use it, don’t lose it and enjoy their gift cards straight away. We’re constantly looking for ways to make gift cards a better option for consumers and retailers alike. That means getting out there and enjoying them.”