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Gift cards witness surge in demand during COVID-19 pandemic

Gift cards witness surge during COVID-19 pandemic: Image 1 Gift card providers are reportedly seeing a surge in demand as consumers continue to stay at home during the COVID-19 pandemic, reports the Gift Card & Voucher Association (GCVA).

As consumers continue to change their spending habits, major retailers, hospitality brands and specialist digital and multi-store gift cards are reporting strong growth.

According to a press release, "As well as popular upcoming gifting occasions, such as Father's Day, 22.3 million UK birthdays are estimated in the next four months, according to ONS data. This, coupled with a rise in spontaneous gifting to show support for loved ones during the pandemic, means that gifting rates will surge in popularity over the coming months."The arrival of new babies is also prompting a boost in gift card spending. With new mothers being told to avoid any visitors to their hospital ward or homes after the birth, an estimated 220,000 new babies over the next four months are boosting sales of gift cards offering congratulations."

A new gifting trend has also emerged, coined 'Sunny Day Gifting', with consumers purchasing gift cards with the intention of being used at a later date once everyday life has returned to normal. According to the report, "This new means of gifting has already been adopted positively throughout the retail and hospitality industries, with consumers across the UK purchasing gift cards for their favourite shops, bars and restaurants."

Gail Cohen, director general of the GCVA, commented: "Life as we know it has changed beyond recognition over the past few weeks, however gift cards remain a wonderfully versatile way of both showing your loved ones how much you care – even if you're not able to be with them – and brightening up their day.
"The rise of digital gifting solutions in particular is driving a major change in how we send and receive gifts, meaning they can be shared and enjoyed almost instantly, offering a safe way of gifting that still offers that truly personal touch."It's also worth bearing in mind that many physical gift cards can be redeemed online from the comfort of your home, and can often be used to purchase the essentials people may need to see them through the coming weeks."

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