Gift Card Usage Will Increase by Roughly 30% This Year
Summary: Gift card sales are going to ramp up this holiday season, and IT Retail can help grocery stores prepare! This increase in sales is great for grocery stores to get more foot traffic, more revenue, and gain more loyal customers. IT Retail can set you up with gift cards for your grocery store, as well as gift cards from other stores to be a one-stop-shop for customers!
Now that COVID-19 restrictions are beginning to be lifted, people are really embracing the spirit of the holiday season and are looking forward to going out for their holiday shopping. After another year of chaos and difficulties for both customers and businesses, some research shows that many consumers are planning to spend more money on this holiday season than they did in 2020.
Grocery stores can make the most of this change in customer trends by making some preparations to make the new influx of customers’ experiences seamless and easy. IT Retail can help your grocery store prepare for this dramatic change in customer trends and is ready to help your store thrive throughout any change — like the estimated increase in gift card popularity.
Why Is the Increase in Gift Cards Good for Grocery Stores?
Like most businesses, gift cards give customers — both current and new — incentives to shop at your store. However, for small businesses and independent grocery stores, gift cards can be even more beneficial than they would be to larger retailers or chain businesses. Statistics show that 74% of surveyed consumers regularly buy gift cards from small businesses. Along with this, 90% of consumers that received a gift card to a small business said that they would shop at the small business multiple times. Additionally, 56% of survey respondents say they will join the small businesses loyalty program.
Not only can offering gift cards give consumers an incentive to shop at your store, but they can also help you to gain new customers and promote loyalty programs that will help you to gain more repeat customers. Any unused gift cards are also beneficial to your business — if the card is never used, you still make a profit from them. In fact, customers spent $98.6 billion on gift cards in 2019, and almost $3 billion were left unused, left for the businesses to profit!
How Can Grocery Stores Prepare?
To prepare for this increase in customer traffic and lean into the upcoming gift card popularity, your grocery store can market its gift cards as a perfect gift for your customer’s loved ones. Additionally, you can offer incentives for your customers to purchase your business’s gift cards. These incentives could include a discount on their purchase when they buy a gift card. Making sure that gift cards are available and convenient is another way to get your customers’ attention and increase the chances of them purchasing your gift cards.
In 208 BlackHawk Network Studies, it was found that 49% of people prefer buying gift cards from the retailer directly, with 45% remarking that gift cards that can only be purchased from the retailer directly bring a feeling of exclusivity. Utilizing this knowledge to your advantage and promoting your own gift cards with incentives such as discounts, promotions, and loyalty points can greatly help your business to receive the benefits of this increase in gift card popularity.
Stock Your Store with Other Businesses’ Gift Cards
When promoting gift cards to your customers, it can be very beneficial to offer gift cards for other businesses as well as your own. This selection will help to promote additional foot traffic because your customers will be able to purchase gift cards for their loved ones while visiting your store for groceries. This allows them to lessen the number of shopping trips they have to take and therefore provides them with convenience. This way, when your customers are going to check out, your well-trained staff and fast POS system will make it easier for them to do all of their shopping at once.
Selling gift cards to multiple businesses is beneficial to all parties involved. Your customers are offered the convenience of getting their grocery shopping and their gift shopping is done in one trip, your business gets the added foot traffic, and the other businesses get more shelf space. This practice of selling multiple different brands’ gift cards in one location is called a “gift card mall” and they are very popular in drugstores and grocery stores. If you would like to sell gift cards from other vendors such as Lowes, Home Depot, Apple, and more contact George Goodwin at IT Retail.
IT Retail Can Help
IT Retail can help your grocery store to get its very own gift cards that are personalized to your business. This can not only help you to get your name out to the gift-givers who are purchasing your cards, but to the gift-receivers as well. IT Retail’s fast and efficient POS systems can help you to thrive in this holiday season and so that you can help your customers find the perfect gifts. If you want a gift card kiosk with other brand name stores George can help as well please reach out at email@example.com.
Check out IT Retail today to get your business prepared for the overflow of gift card sales expected this season. And request a demo today to see just how our POS system can enhance your customer service.
- Increased gift card sales are great for grocery stores to gain more foot traffic, more sales and increase their customer base
- Grocery stores can increase their gift card sales by promoting them as great gifts and incentivizing customers by providing a discount with a gift card purchase
- Businesses gained an extra $3 billion dollars in revenue from forgotten gift cards in 2019, and an increase in gift card sales will also increase that dollar amount.
- Stores can prepare for this increase by having their won gift cards, an efficient POS system, and training their employees on efficiently ringing up gift cards.
- Stores can also prepare for this increase by stocking up on other stores’ gift cards.
- Selling other stores’ gift cards gives your customers convenience, increases foot traffic, and creates stronger partnerships with other businesses.
- IT Retail can get your store ready with your very own gift cards, along with other businesses’ gift cards. Contact George Goodwin to get set up!
- Schedule a Demo with IT Retail today to learn more about our products and the multiple ways we can help you through the holiday season.