Technology | Gift Cards
COUNTING ON
GIFT CARDS Strong through the pandemic, gift cards now help cushion the impact of inflation for consumers and retailers. Anne Baye Ericksen • Contributing Editor
The events of the past few years have pushed convenience stores to rethink traditional category management strategies. Once steady, reliable product families were shaken by the drastic changes ushered in by the COVID-19 pandemic. When in-store traffic dropped off early on, many categories suffered the consequences, except for gift cards. Throughout the past three years, gift cards have been a consistent performer for the convenience store industry. Why has this product segment performed so well while other c-store staples were significantly impacted? Simply put, the gift card category has three factors that have helped immunize it from an unsteady pandemic economy. First, the sector enjoyed notable upticks prior to COVID, which provided a firm foundation. Already a perennial favorite to mark occasions, especially holidays, graduations and birthdays, people continued to celebrate special days with gift cards throughout the pandemic. During the end-of-year holiday season last year, combined sales of physical and digital gift cards saw double-digit increases, according to Blackhawk Network’s “2021 Post-Holiday Shopping” study. Forecasts for the upcoming holiday season have yet to be released; however, industry watchers are optimistic, especially after reports for the first half of 2022 show gains. “The use of gift cards as a whole continues to grow, and savvy retailers are finding new use cases, such as charitable giving and employee incentives, to get the most out of gift cards at their businesses,” said Tom Niedbalski, vice president of gift solutions for Fiserv, 54
CSTORE DECISIONS •
August 2022
