With over 472 million gift cards purchased during holiday ’05, that means 147 million of those cards were given with separately purchased gift card packages. Gift card packaging represents a large and rapidly growing additional revenue stream for retailers.

Why are consumers spending more on gift card packages?
1. Consumer Experience: There is a trend toward giving a complete gift—not just giving a piece of plastic. Gift card givers want to complete and personalize the gift and make it more substantial..

“... in surveys of gift-card consumers, one of the biggest complaints is that the cards don’t have the look and feel of a gift. ‘Some people feel it’s a small step removed from giving cash ...you have to improve the gift-giving experience.”
Presents of Mind: Merchandizing Makes the Difference with Gift Cards, May 2006 CSP

2. Consumer Expectations: With more retailers offering gift card packages, consumers have come to expect this offering. Also, as the popularity of gift card packages grows, those who receive gift cards expect them to be given in innovative, interesting packages. Retailers who offer gift cards without offering enhanced packages may eventually find their customers going elsewhere for a one-stop solution.

What are retailers saying about gift card packages?
1. Results: Most of Give-A-Gift™’s large retail customers have seen sell through rates over 85%. Quantities for some of Give-A-Gift™’s largest retail customers have grown by 100-500% per year over the past three years, maintaining the same high level of sell through.

2. Maturing Market: According to Dan Horne, an industry expert, packaging is a sign of a mature gift card program and maturing market. With more and more options available, consumers are coming to expect a variety of gift card packages.

3. One Stop Shopping: As the market matures and consumers look to purchase gift card packaging, stores don’t want consumers purchasing cards at their stores and going to other stores to purchase packaging to put them in.

“Chains that have fully committed to gift cards want to be a ‘one-stop shop’ for people interested in the cards ...consumers don’t wat to go elsewhere for wrapping materials once they buy the card.”
Presents of Mind: Merchandizing Makes the Difference with Gift Cards, May 2006 CSP

Teaming-up for a successful gift card program!
Dow Jones Newswire reported on Dec. 28, 2005, “Wal-Mart Stores Inc., ...gift card sales have outpaced expectations during the holiday shopping season ...amid new innovations and a strong promotional effort. ...Including gift boxes specially made to hold the cards.”

Market leaders, teaming with Give-A-Gift™, are creating consumer expectations that other retailers must respond to or face loosing market share.