Gift Card Sales Growth in Double Digits for Quick Service Restaurants and Specialty Retail
ATLANTA, July 26, 2010 – First Data Corporation , a global leader in electronic commerce and payment processing, today announced that U.S. merchant-branded gift card sales gained traction in the first half of 2010. Merchants saw year-over-year monthly sales growth from February through June. Sales increases peaked in April then subsided in the following months. Gift card sales performance varied by merchant type; quick service restaurants and specialty retail performed exceptionally well.
This First Data First Half Gift Card Performance Report compares gift card activations and reloads from January 1, 2010 through June 30, 2010 to activity in the same period last year. The numbers in this report are based on aggregate transaction data generated by First Data’s gift card processing business.
|All Gift Cards||CHANGE|
|Dollar value of gift cards sold||+4.6%|
|Number of gift cards sold||+2.7%|
|Average gift card amount||+1.9%|
|Note: “All Gift Cards” includes merchant types not represented elsewhere in this report.|
Gift card reloads continued to grow rapidly, particularly for quick service restaurants such as fast food and coffee and pastry locations. In the first half of 2010, the dollar value of gift card reloads increased by 47% for quick service restaurants and approximately 25% across all merchant types.
Specialty retail grew significantly through the first half of 2010. The number of gift card activations increased by 5.3% and the dollar value grew by 10.3% over last year. The average value of a gift card increased by 4.8%. The specialty retail category includes merchants that sell clothing, electronics, books, sporting goods, hardware, music, video, beauty supplies, home goods and other items.
|Specialty Retail Gift Cards||CHANGE|
|Dollar value of gift cards sold||+10.3%|
|Number of gift cards sold||+5.3%|
|Average gift card amount||+4.8%|
Casual Dining Restaurants
The dollar value of casual dining gift card activations grew 4.7% over last year. The number of cards activated rose 6.1%.
|Casual Dining Gift Cards||CHANGE|
|Dollar value of gift cards sold||+4.7%|
|Number of gift cards sold||+6.1%|
|Average gift card amount||-1.2%|
Quick Service Restaurants
Quick service restaurants achieved double-digit growth in the dollar value of gift card sold between January and June, with a 14.0% increase in activations. The number of cards activated grew 12.4%.
|Quick Service Restaurant Gift Cards||CHANGE|
|Dollar value of gift cards sold||+14.0%|
|Number of gift cards sold||+12.4%|
|Average gift card amount||+1.4%|
About the First Data 2010 First Half Gift Card Performance Report
The First Data 2010 First Half Gift Card Performance Report is based on aggregated transaction data generated by First Data’s merchant-branded gift card processing business. This report compares gift card activations and reloads from January 1, 2010 through June 30, 2010 to activity in the same period last year. Prior year transaction data represents comparable closed loop transactions processed by First Data for the retailers included in the summary.
About First Data
First Data powers the global economy by making it easy, fast and secure for people and businesses to buy goods and services using virtually any form of electronic payment. Whether the choice of payment is a gift card, a credit or debit card or a check, First Data securely processes the transaction and harnesses the power of the data to deliver intelligence and insight for millions of merchant locations and thousands of card issuers in 36 countries. For more information, visit www.firstdata.com .
Glen Turpin, First Data