With the holiday season gone, the non-peak shopping season starts and the retailers concentrate on what can be done to boost revenue during this lean shopping time of the year. Research done by Retail Gift Card Association (RGCA) shows that this lean shopping period is actually the best time to market Gift cards.
The demand for gift cards is constant unlike other retail products which are sold only during a particular season. Gift cards are the most requested and given gifts in USA and people redeem them mostly within a month. This translates into more revenue and more footfalls for the retailers. Unlike for other retail products, people do not wait for a sale or a promotion to buy a gift card. Retailers should concentrate on gift card programs during this lean period. Research shows that most of the people shop for themselves too when they go to buy a gift card irrespective of the channel they are buying it from. Gifts cards lead to incremental sales and there is a strong possibility of person who got the gift card will spend more than the value of the gift card.
Gift cards are always marketable and can be a profitable category. They bridge the gap between the peak and non-peak shopping periods. Make sure to promote your Gift cards in store and on website too.