U.S. gift card spending surges amid supply chain shortages

Foreign media InMarket recently released a research report on gift card consumption in the United States during this holiday season. Against the backdrop of supply chain shortages and inflation caused by the epidemic, gift cards have gradually become the first choice for holiday gifts among American consumers.

The report pointed out that consumers this year spent on gift cards earlier than last year to cope with the shortage of goods during the holiday shopping season amid supply chain shortages.

InMarket CEO Todd Dipaola said that the time, place and way Americans shopped during the epidemic have changed. A new consumption normal is taking shape, offline self-pickup is becoming popular, and omni-channel shopping is experiencing rapid growth.

Labor shortages have caused unprecedented logistics delays, and Americans have begun to develop the habit of using gift cards. To this end, retailers should prepare for a long-term battle in omnichannel holiday shopping, and provide consumers with a variety of options while finding solutions.

InMarket's 2021 Holiday Gift Card Report also evaluates total gift card spending and average gift card spending per consumer in different retail categories.

QSR+Casual Dining

Starbucks has the highest share of gift card purchases of any company, with the coffee chain accounting for 11.7% of all gift cards sold in September and October 2021. All of its QSR competitors have a share below 2.9%.

While McDonald’s ( 2.5%) trails Starbucks (11.7%) in purchase share, McDonald’s gift card buyers spend more on gift cards than other QSR chains, spending an average of $34.9 per shopper.

Among casual dining chains, Buffalo Wild Wings (3.2%) had the highest share of gift card purchases, while O'Charley's ranked first with $58.33 spent per person.

General Business

Among business gift cards, which can be used for a variety of products and services, Visa cards had the highest share of purchases at 14.8%, with shoppers spending an average of $106.87.

Second place went to Amazon, which accounted for 13.5% of total gift card purchases , up from 6.7% last year, with an average spend of $75.8 per person.

Mastercard had a 1.3% share of gift card purchases, with shoppers spending an average of $71.88.

Electronics

Google had the highest share of total gift card purchases at 5.3%, followed by Microsoft Xbox at 4.9% and Apple at 1.9%.

In the 2021 gaming industry competition, Xbox leads PlayStation (0.3%) with a share of 4.9%.

Home Improvement

Lowe ’s leads the category with 2.4% of all gift card purchases and an average spend of $77.84 per consumer.

Home Depot accounted for 1% of all gift card purchases, with an average spend of $39.96 per consumer.

Amazon US

Gift Cards

Holiday Shopping Season