GIFT CARD SALES DEFY SLUGGISH RETAIL MARKET TO DELIVER DOUBLE-DIGIT GROWTH Gift card and voucher sales continued to outshine broader retail trends in the second half of 2024, according to the latest research from the Gift Card & Voucher Association (GCVA) and KPMG UK. Data from GCVA’s members shows that in the last six months of 2024, gift card and voucher sales surged by 11.39 percent on a like-for-like basis, marking the first double-digit growth since H1 2021. This strong performance stands in sharp contrast to a tough year for UK retailers, with total retail sales growing by just 0.7 percent during the same period (according to the BRC-KPMG Retail Sales Monitor). Retailers saw an 11.3 percent uplift in gift card sales, with grocers leading the charge. Sales in the grocery sector soared 20.48 percent, as both employers and consumers turned to food-related gift cards to help manage household budgets amid ongoing cost-of-living pressures. The data also reflects the increasing popularity of employer-sponsored gift card schemes, enabling staff to stretch their pay further. The leisure sector continued its impressive run, posting 13.3 percent growth on a like-for-like basis for the seventh consecutive period. Consumers increasingly opted for experience-based gifts despite tightening budgets, highlighting the resilience of leisure gifting. B2B gift card sales remain the primary growth driver, registering a 13.7 percent increase, with employee benefits, savings, and salary sacrifice programmes leading the way. This mirrors the ongoing trend of businesses using gift cards to support staff, offering a practical tool in managing everyday expenses. Digital gift cards also hit a significant milestone. For the first time, they claimed over half (50.3 percent) of market share on a rolling year basis, with sales up 20.6 percent year-on-year. The growth of digital sales underlines shifting consumer habits and the growing demand for flexible, instant gifting options. Despite the growth of digital options, physical gift cards remain popular particularly for festive gifting, with over half (54 percent) of consumer sales from retail stores and 22 percent from gift card malls. Sales from which increased 5.6 percent and 13.6 percent respectively. Commenting on the findings, Hannah Shimko, GCVA Managing Director, said: “This report demonstrates the resilience and versatility of the gift card market. Gift cards are a vital tool helping consumers and businesses navigate challenging times. Whether it’s employers supporting staff through benefits schemes or consumers choosing flexible gifting options, the sector has shown remarkable adaptability. “The strong growth we’re seeing, shows that amidst wider retail struggles, gift cards remain an essential part of the UK’s shopping landscape for consumers, and that consumers continue to see gift cards as fantastic gifts. As we celebrate these results at our GCVA Conference, I’m excited about the future opportunities for our industry, particularly in the digital space and through B2B channels.” LESSER & PAVEY APPOINTS NEW SALES REPRESENTATIVES Lesser & Pavey has appointed two new sales representatives Nick Garner covering the Midlands, & James Binckes-Williams looking after customers in the south of England. Two new sales representatives ensures the personal service Lesser & Pavey offers to customers. Both are highly experienced with excellent knowledge in the gift industry. T: +44 (0)1322 279 225, E: sales@leonardo.co.uk, www.leonardo.co.uk MORLEY STORES TO REOPEN JOLLYS STORE IN BATH Morleys Stores has announced plans to reopen the iconic Jollys store in Milsom Street, Bath, and will bring a revitalised shopping experience to this historic retail destination. Against a backdrop of negative retail stories this news is a huge boost for the city of Bath and a much needed and positive demonstration of investment and growth from a UK department store business. In addition, they are announcing a £3m investment into Pearson of Enfield during 2025. James Binckes-Williams Nick Garner 10
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