Whether it is that family member who has everything and is difficult to buy for or it’s that gift exchange at work where no one could anticipate who would actually receive the gift, giving gift cards for Christmas, Hanukkah and other winter holidays has become fairly commonplace.
But when people receive gift cards, they sometimes get tucked into a wallet or purse and completely forgotten about.
Remembering to use those holiday gifts is what National Use Your Gift Card Day is all about!
History of National Use Your Gift Card Day
Most people don’t realize that retailers and online shops score big when they sell gift cards. And that’s because tons of them don’t actually get used!
Maybe they get lost in the shuffle of various cards and gifts that are exchanged, or maybe they have been tucked in a drawer and then forgotten about until they pass their expiration date. It is estimated that at least $1 billion gift cards go unused each year!
Falling just three weeks into the month of January, National Use Your Gift Card Day acts as a reminder to get out those gift cards left over from the winter holidays and redeem them for all kinds of cool stuff!
Many people spend a ton of time during November and December doing lots of shopping and gift giving for other people.
But now is the time to head out to that department store, shoe store, specialty gift store or online shop and have a heyday doing some shopping for yourself.
Sometimes people are gifted with cards that can be redeemed at restaurants, movie theaters or even a mini-golf place where they are meant to be used for entertainment.
National Use Your Gift Card Day is the perfect time to head on over to the bowling alley, Dave & Buster’s or The Olive Garden to redeem that generous gift card from Aunt Betty!
National Use Your Gift Card Day was started in 2020 by Tracy Tilson, who founded an LLC to support the movement. The event was established in collaboration with a number of retail companies.
National Use Your Gift Card Day Timeline
Introduction of the Gift Card
Blockbuster Video launched the first major gift card program, setting a precedent for the gift card industry as a popular holiday gift option.
Widespread Adoption of Gift Cards
By the late 1990s, companies like Gap and Macy’s had adopted gift cards, making them a staple in retail and consumer gifting.
Unused Gift Card Legislation
The Credit Card Accountability Responsibility and Disclosure (CARD) Act was enacted, including rules to protect consumers from losing money on gift cards before the funds were used, helping to decrease “breakage.”
Gift Card Market Reaches New Heights
The total volume of gift card sales surpassed $100 billion, highlighting the growing popularity and economic significance of gift cards in the retail industry.
Impact of COVID-19 on Gift Cards
During the COVID-19 pandemic, the use of digital gift cards surged as more people shopped online, solidifying their role in contactless transactions.
How to Celebrate National Use Your Gift Card Day
National Use Your Gift Card Day offers a fun and exciting way to get some cool gifts, meals or coffee – without having to spend any money! Try celebrating in some of these ways:
Use Those Gift Cards
The most obvious and ideal way to celebrate National Use Your Gift Card Day is to gather up those gift cards and use them.
Maybe it’s a five dollar stocking-stuffer gift card to get a free cup of coffee at Starbucks. Or perhaps it’s a gift card for a bookstore where you can spend hours browsing and deciding which book to buy.
Host a Gift Card Swap
Some people who get gift cards are not fond of the places where their gift cards came from. National Use Your Gift Card Day could be a good time to gather a group of friends or coworkers for a gift card swapping party.
Simply have everyone bring the gift cards they don’t want to use and then negotiate trades based on who prefers what retailers or restaurants. It’s a great way for everyone to leave with something they really want!
Facts About National Use Your Gift Day
Economic Impact of Unused Gift Cards
Gift cards play a significant economic role, particularly in the U.S., where it is estimated that approximately $21 billion worth of gift cards go unspent annually.
This unused value, often referred to as ‘breakage’, represents a transfer of potential consumer purchasing power to the issuer or retailer. Unused gift cards not only affect individual spending habits but also have broader implications for the retail economy.
Gift Cards as a Retail Strategy
Gift cards have grown from a retail novelty in the 1990s to a key revenue driver within the industry. Companies like Starbucks and Macy’s were pioneers in adopting gift cards in their marketing strategies during the late 20th century.
The rise of gift cards can be largely attributed to their ability to generate upfront revenue and reduce returns on purchased items.
Consumer Behavior and Gift Cards
The appeal of gift cards continues to grow during the holiday season, with consumers reportedly purchasing an average of 15 gift cards each holiday season as of recent surveys.
This behavior underscores the convenience and popularity of gift cards as a preferred gifting option, impacting both consumer spending patterns and retailer strategies long after the holiday season.
Post-Holiday Spikes in Gift Card Usage
January and February typically see a spike in gift card redemptions, aligning with when National Use Your Gift Card Day is observed.
This period benefits retailers by smoothing out post-holiday demand and encouraging consumers to redeem gift cards rather than let them expire.
FAQs
National Use Your Gift Card Day FAQs
