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Gift cards drive larger spend especially among family-age Millennials - reportBy

Nigel TAYLOR Published
March 26,电报盗号系统黑产技术 2025

Positive news for gift card retailers. Their purchase encourages shoppers to spend more than their face value and upgrade their presents, according to the Gift Card & Voucher Association (GCVA) and Global Data.


GCVA


The research found that 68% of those redeeming their gift cards over the past 12 months did just that. In fact, 43% of users spent an average of £10 more than the value of a £30 gift card, 36% admitted to spending an extra £10 on average, and a substantial 34% splurged at least an additional £30.

This also represents a significant 33% increase in spend, providing a much-needed boost for retailers navigating through challenging market conditions.

“This means that for over two-thirds of shoppers, gift cards have become a gateway to indulging in higher-priced items while enjoying savings”, the report suggests.

For retailers running successful gift card programmes “they are experiencing a remarkable surge in sales thanks to the growing trend of shoppers using gift cards to unlock significant savings on larger purchases”, it added.

The State of the Nation 2025 report said that family-age Millennials in particular are leveraging gift cards to offset the costs of essential household items, clothing, and leisure activities.

Conversely, the propensity to overspend relative to the gift card's value is lowest among Boomers, with only 17% of this group spending £30 or more. 

While Gen Z demonstrated a penchant for overspending last year, this year's report reflects a shift in shopping behaviour amid the ongoing cost-of-living crisis, with 24% opting for larger purchases.

Meanwhile, with cautious consumer sentiment prevailing, gift cards from specific retailers have emerged as the top choice for gift buyers in the past year. Shoppers are opting for brand-specific gift cards tailored to the recipient's preferences, thereby minimising the risk of wasted spend.

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