Gift Card Activation in Specialty Retail Stores Grew By Almost 50 Percent
ATLANTA, Dec. 1, 2009 – First Data Corporation, a global leader in electronic commerce and payment processing, today announced that Black Friday gift card performance was up significantly compared to last year. The total dollar value of gift cards activated Friday grew 17.8 percent and the number of cards activated grew 9.8 percent.
The First Data Holiday Gift Card Performance Report compares gift card sales for the week ending Nov. 29, 2009 with the same period in 2008. The numbers in this report are based on aggregate transaction data generated by First Data’s gift card processing business.
Black Friday
Black Friday showed a strong start to the holiday shopping season, and First Data predicts that gift card performance will remain flat or increase slightly this holiday season compared to last year. Approximately three-quarters of gift card purchasers indicate that they buy their gift cards within two weeks of the holidays, so the vast majority of gift card sales are expected to occur in the weeks ahead.
| Black Friday - All Gift Cards | CHANGE | ||
|---|---|---|---|
| Dollar value of gift cards sold | +17.8% | ||
| Number of gift cards sold | +9.8% | ||
| Average gift card amount | +7.2% | ||
| 2008 | 2009 | ||
| $36.83 | $39.50 | ||
The dollar value of specialty retail gift cards activated Friday soared 46.9 percent and the number of specialty retail cards activated grew 39.7 percent. The growth appears to have been driven primarily by the use of gift cards as incentives by specialty retailers. Many merchants are including a free gift card with the purchase of merchandise or a gift card in order to drive store traffic and sales.
The specialty retail category includes merchants that sell clothing, electronics, books, sporting goods, hardware, music, video, beauty supplies, home goods and other items.
| Black Friday – Specialty Retail | CHANGE | ||
|---|---|---|---|
| Dollar value of gift cards sold | +46.9% | ||
| Number of gift cards sold | +39.7% | ||
| Average gift card amount | +5.1% | ||
| 2008 | 2009 | ||
| $46.35 | $48.72 | ||
Full Week Gift Card Performance
Overall, the number of gift cards activated for the week was comparable to last year; however, the dollar value loaded onto cards grew 5.7 percent, consistent with growth in the average card denomination.
| All Gift Cards | CHANGE | ||
|---|---|---|---|
| Dollar value of gift cards sold | +5.7% | ||
| Number of gift cards sold | -0.1% | ||
| Average gift card amount | +5.7% | ||
| 2008 | 2009 | ||
| $34.17 | $36.13 | ||
For specialty retailers, Black Friday saw the greatest increase in gift card performance, but activity was strong throughout the week, with a 13.4 percent increase in the number of cards activated and a 22.2 percent increase in the dollar value of specialty retail gift cards.
| Specialty Retail Gift Cards | CHANGE | ||
|---|---|---|---|
| Dollar value of gift cards sold | +22.2% | ||
| Number of gift cards sold | +13.4% | ||
| Average gift card amount | +7.8% | ||
| 2008 | 2009 | ||
| $46.96 | $50.60 | ||
Dollars loaded on restaurant gift cards grew 3.4 percent for the week, while the number of cards activated decreased 2.9 percent.
| Restaurant Gift Cards | CHANGE | ||
|---|---|---|---|
| Dollar value of gift cards sold | +3.4% | ||
| Number of gift cards sold | -2.9% | ||
| Average gift card amount | +6.5% | ||
| 2008 | 2009 | ||
| $18.06 | $19.23 | ||
About the First Data Holiday Gift Card Performance Report
This report compares the number of gift cards sold between Monday, Nov. 23, 2009 and Sunday, Nov. 29, 2009 to those sold during the same period last year, Monday, Nov. 24, 2008 through Sunday Nov. 30, 2008.
The numbers in the First Data Holiday Gift Card Performance Report are based on aggregate transaction data across First Data’s gift card processing business. 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.
Contacts
Media Relations
Glen Turpin, First Data
303-967-6552
glen.turpin@firstdata.com